Abu Dhabi rents may continue falling in 2012
14 Dec 2011
(MENAFN) A report, issued by real estate consultancy Asteco, expected rents in Abu Dhabi to fall in 2012, with nearly 25,000 homes scheduled for completion, Arabian Business reported.
The report said that rents in UAE capital stabilized in the fourth quarter, held by a delay in home handovers, but will be squeezed by an expected 18,800 apartments and 5,950 villas due for completion in 2012.
The report added that new competition among landlords to retain tenants will be ignited as over 12,000 residential units are poised to enter the market in the first half of 2012.
Elaine Jones, CEO of Asteco, said that about 8,000 of these units would represent a significant improvement in quality compared to existing stock, providing tenants as well as buyers with significantly better value-for-money options.
Property prices in Abu Dhabi stayed flat throughout 2011 as buyers backed down from investing because of the delays in handovers and high prices.
It is worth mentioning that UAE’s property boom ended in 2008, as house prices in Dubai more than halved, forcing many developers to abandon projects and seek economic hosing schemes.
Abu Dhabi more recently saw a slowdown of large infrastructure projects, as the government scales back its project spending in line with current economic realities.