The move comes as part of efforts to support the Climate Neutrality 2050 initiative
transport2 hours ago
Rents of apartments, villas and offices in Abu Dhabi fell during the second quarter of 2017 and could see further drop, says a new report, reaffirming earlier studies of rents remaining under stress for the remainder of the year due to the increase in new supply.
In Q2, apartment rents in the UAE capital on average dropped four per cent while those of prime, high and low-end properties saw a three per cent drop whereas mid-market properties were faced with a softening of five per cent, says real estate consultancy Asteco.
"Approximately 600 apartments were handed over during the second quarter and more than 2,000 additional units are expected to be delivered over the next six months, placing further pressure on rates. 2017 will continue to be a challenging year for the Abu Dhabi real estate industry," said John Stevens, managing director, Asteco.
Real estate consultancy JLL reported earlier this month rents declined in the second quarter and the trend is likely to persist for the remainder of the year.
Jalal Mamdouh, leasing coordinator at Prime Capital, told Khaleej Times recently that rents in Abu Dhabi are expected to decrease throughout 2017 due to companies cutting costs. "Many expats have left, which means the rental prices also decline."
According to Asteco, high-end apartments in Central Abu Dhabi, Corniche and Khalidya/Bateen posted declines of four per cent, two per cent and two per cent respectively. Rent declines for lower-end properties in the same locations were relatively subdued at two per cent.
Though sales of apartments softened four per cent quarter on quarter and eight per cent year on year, sales activity improved marginally after developers offered more competitive rates to customers.
Office rents fell nine per cent in Q2 2017 as compared with Q2 2016 with some units reportedly discounted up to 15 per cent below the market rate. However, demand remains stronger for smaller units, which are being offering with incentives to retain tenants to negate the lack of new take-up, Asteco added.
- waheedabbas@khaleejtimes.com
The move comes as part of efforts to support the Climate Neutrality 2050 initiative
transport2 hours ago
Civil defence authorities have yet to issue a statement on the cause of the fire
uae2 hours ago
Sales of under-construction properties surged to 60% of total transactions in July 2024, a year-on-year spike of 49%
columnists2 hours ago
It was a methane gas explosion in two blocks of the mine and 69 workers were there at the time
world2 hours ago
The Road to the Finale: Let's look at how 14 events shaped this season’s top teams - Legion XIII, Ripper GC, 4Aces GC (10th seed) and Iron Heads GC
sports2 hours ago
Chasing a mammoth 515 victory target, Bangladesh were all out for 234
cricket2 hours ago
People of determination have access to several benefits such as free parking, exemption from Salik toll fees, modified taxis
uae3 hours ago
If a signature was forged intentionally or maliciously, legal action can be taken to recover the amount owed under the law
legal4 hours ago