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FINANCIAL NEWS
Abu Dhabi property rents fall 5-15% in Q1
15 Apr 2010
(MENAFN) A report issued by Asteco said that apartment rents in Abu Dhabi have declined by at least 5 percent in the first quarter this year, and rents are expected to soften further as more new properties come into the market.
During the first quarter, Abu Dhabi’s real estate market saw an average decline of 5 to 15 percent in apartment rents with significant quantities of new supply under construction this downward trend is set to continue.
According to the report, affordability has put a ceiling on villa rents in the emirate, with declines in rents particularly at the upper end of the market, and demand for office space remains subdued with potential tenants adopting a wait and see strategy in expectation of further price reductions.
Asteco said it has seen low leasing take-up rates amongst new developments which have been handed over in the last three months or are due for imminent completion.
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