Apartment and villa rents in Abu Dhabi were relatively stable in the third and early fourth quarters and saw marginal declines.
Abu Dhabi rents stable, decline marginally
DUBAI // Apartment and villa rents in Abu Dhabi were relatively stable in the third and early fourth quarters and saw marginal declines, a report said on Sunday, amid increasing signs global property markets are recovering. Rents for low quality villas for the third and first part of the fourth quarter in Abu Dhabi have declined by up to 8 per cent, while good quality properties have held their value, according to property consultancy Landmark Advisory.
"Low quality units continue to be the worst performing assets. Declines, however, are largely marginal, which indicates rental stabilisation," said Jesse Downs, director of research and advisory services at Landmark. "In the apartment segment, while low quality units have declined up to 5 percent, good quality units remained without significant change." Continued demand for smaller apartments in Abu Dhabi, which remain in short supply, has kept rent levels high, the report said.
Apartment rents in older low quality buildings in the capital are likely to decline during the fourth quarter as villas become available, it said. Office rents remained relatively stable since early to mid-September, despite falls of up to 20 per cent during July and August, Landmark said. The findings are in line with other global property markets. For example, House prices in England and Wales rose on an annual basis for the first time in more than a year in October, property Web site Rightmove said last week.
House prices in Abu Dhabi are expected to fall 33 per cent during full year 2009 and are expected to decline 3 percent in 2010, a Reuters poll showed earlier in October. *Reuters