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FINANCIAL NEWS
Abu Dhabi residential rentals continue to drop in Q2
05 Jul 2012
(MENAFN) A recent report published by real estate consultancy Asteco Property Management showed that Abu Dhabi residential rental rates recorded a 15 percent fall during the second quarter of 2012, as fresh glut of properties came online, Arabian Business reported.
Asteco CEO Elaine Jones said that a total of 7,400 apartments and 1,675 villas entered the market during the first half of the year, luring existing residents to seek for better quality and money accommodations.
As a result of the increased supply, quarter-on-quarter rental rates have slumped.
Abu Dhabi’s Marina Square recorded the steepest fall by 15 percent, followed by apartment units in Mussafah and villas in Sas Al Nakhl, which both dropped by 14 percent.
An additional 7,000 apartment units and 4,560 villas are due to come on stream in the second half of 2012, which will further drag rental prices down.
Apartments in Shams Abu Dhabi, Marina Square and Raha Beach proved the most in demand. However, with new coming properties, prices are likely to continue falling in the second half of 2012.
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