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Abu Dhabi property prices nearly 30% lower than 2016 peak

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Property prices in Abu Dhabi are now nearly 30% lower than their peak in early 2016 - New Report by ValuStrat

ValuStrat report shows residential values in UAE capital are 12.6% down annually

Property prices in Abu Dhabi are now nearly 30 percent lower than their peak in early 2016, according to a new report by ValuStrat.

The third quarter 2019 Abu Dhabi real estate review issued by consulting firm ValuStrat also showed that the UAE capital’s residential capital values were 29.1 percent down from their peak, 12.6 percent lower than last year and 2.4 percent than the previous quarter.

It also revealed that residential rental values declined at a slower rate of 9.2 percent annually.

ValuStrat said the weighted average residential value this quarter was AED9,505 per sq m – apartments stood at AED10,044 per sq m and villas at AED7,083 per sq m.

It added that all ten locations monitored by the report witnessed single-digit quarterly declines in capital values of less than 4 percent.

Apartments in Al Bandar saw marginal quarterly dips of less than 1 percent, while villas in Mohamed Bin Zayed City saw no change since Q2.

On an annual basis, typical apartment units located in Al Reem Island and Al Reef saw 15.4 percent declines, as well as villas in Hydra Village with 16.2 percent annual drop.

“Abu Dhabi is enjoying relatively high residential yields across the board. This is due to the fact that rental value falls are slower than capital value declines,” said Declan King, managing director and group head of real estate at ValuStrat.

As far as residential supply was concerned, an estimated total of 1,000 villas and 733 apartments have been completed so far in 2019, which is 31 percent of the projected 5,590 units for the year.

“Relatively modest new home supply in the capital is to be welcomed at this stage in the property cycle, coupled with reports of buyer demand for any sensibly priced stock that is released by reputable master developers – these are both encouraging signs for the longer term recovery and sustained health of the residential property market in Abu Dhabi,” added King.

Source : Arabian Business

(The story has been published from a wire feed without any modifications to the text)

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