DUBAI — Residential rents in Abu Dhabi are expected to remain weak for the rest of 2009 after modest declines in the third quarter in central locations, but are likely to stabilise in 2010, CB Richard Ellis said on Wednesday. “Compared to other emirates, the Abu Dhabi market is expected to maintain a relatively strong position fuelled by the existing meagre supply across virtually all asset classes,” the real estate services firm said in a report.
The property market in Abu Dhabi, capital of the UAE and home to most of the country’s oil, has weathered the financial turmoil better than neighbouring areas.
Apartment rents in the capital’s central locations fell by around 5 per cent from the second quarter and many apartment rents remained unchanged, while prices further out fell by up to 15, it said.
Sales prices fell in the third quarter with sales transaction activity at extremely low levels, it added.
In a separate report earlier this week CBRE said lease and sales rates in Dubai were near a bottom but would see further nominal declines before the end of the year.
Investment bank HC Securities & Investment said Abu Dhabi is expected to have an undersupply of 75,000 homes by 2011. —
