The drop in new housing supply comes at a time when property agents are reporting an increase in demand which has been pushing up housing rents across the city as well as house prices.
New home completions in Abu Dhabi decline more than 68%
Abu Dhabi home completions slowed in the third quarter over last year after a spike in handovers.
The number of new homes completed in the emirate fell by more than two thirds from a year ago, official figures show. It follows a spate of project completions over the year including thousands of new government housing units as well as other private developments across the city.
New figures from the Statistics Centre Abu Dhabi (Scad) reveal that the total number of homes completed in the capital during the three months to the end of September 2013 fell to 1,129 from 3,584.
The number of new homes built in the Al Ain region fell 16 per cent to 634 and in Al Gharbia the number of new home completions fell 71 per cent to just 67.
In its quarterly update on construction activity across the Abu Dhabi emirate, Scad said that in total 1,251 new buildings were completed across the emirate over the period – a fall of 41 per cent compared with the same period the previous year.
Housing made up 91.6 per cent of all the new buildings completed in the emirate over the period, Scad said. The drop in new housing supply comes at a time when property agents are reporting an increase in demand which has been pushing up housing rents across the city as well as house prices in the limited market of Abu Dhabi’s freehold neighbourhoods.
Cluttons reports that average house prices in Abu Dhabi’s freehold areas rose 14.4 per cent during the third quarter of the year, an increase from 11.2 per cent during the previous quarter. Average rents increased 1 per cent during the same period after increasing 4.5 per cent during the previous quarter.
And with rules capping rent rises for existing tenants revoked by the Abu Dhabi Government last month, property specialists expect further rent increases in 2014.
The estimated average construction cost ranged between Dh 3,273 and Dh 4,255 per square metre, depending on the building’s use, size and standard of finishes, Scad added.
The report “reflects the centre’s recognition of the huge importance of the real estate sector for the economy, whether reference is to completed projects or developments under construction”, according to Scad.