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FINANCIAL NEWS
Abu Dhabi posts 6-7% fall in Q4 rent prices
11 Jan 2011
(MENAFN) Elaine Jones, Chief Executive at Asteco, an Abu Dhabi-based property management firm, said that during the October-December period of 2010, rent prices and leases in Abu Dhabi dropped by as much as 7 percent, Reuters reported.
According to Asteco data, the decline was attributed to a new supply in housing, reduced company housing allowances and landlords being flexible with rates.
Leasing rates for apartments in Abu Dhabi’s outskirts fell by an average of 7 percent, while within the city it dropped by 6 percent during the period. Villa rent declined by 5 percent, said Jones. Furthermore, office rents continued their downward trend from the last quarter, losing 7 percent across the sector.
Moreover, the first phases at Reem Island and new supply at Al Raha Beach are scheduled to hit the market soon, adding further downward pressure on resale and rental rates in the UAE’s capital, explained the CEO.
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