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FINANCIAL NEWS
Abu Dhabi’s residential units’ rents fall 10%
18 Oct 2011
(MENAFN) Jones Lang LaSalle, the real estate advisory firm, said that rents for two bedroom apartments in Abu Dhabi fell 10 percent over the past year due to the rise in supply and vacancies in new buildings with good qualities, reported Khaleej Times.
The firm added that in the third quarter, around 2,800 residential units were delivered in Abu Dhabi, whereas the residential stock reached 193,000 at the current time and the number would be expected to increase to exceed 246,000 units by the end of 2013.
It also said that rents of residential units with low qualities also dropped 30 percent, adding that with increased supply and vacancies, in addition to a falling rental pressure, tenants across different sectors would be able to upgrade to new and better properties without having to pay for additional costs.
It is worth noting that major future completions of good quality residential buildings will reduce rents across the emirate during the fourth quarter of the year and into the next year.
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