Abu Dhabi property sale prices and rents continued to fall in the third quarter of the year, according to Asteco.
The real estate consultancy attributed the drops to weakness in the job market and reduced housing allowances, according to a statement.
Average apartment rental rates dropped by 3% over the quarter and by 10% over the last 12 months, with the highest declines recorded for mid-end properties and large units within prime and high-end projects, Asteco said.
In the high-end segment, the highest year-on-year (YoY) declines were recorded at Abu Dhabi Corniche (down 15%), while mid-end and low-end areas evidenced the largest declines, including Al Reef Downtown, Khalifa and MBZ City.
Sales prices for apartments declined 3% quarter-on-quarter (QoQ) and 10% YoY.
Approximately 2,750 apartments have been completed across the emirate since the beginning of 2017, compared with 1,350 for the 2016 calendar year. In addition to the 800 units delivered in Q3, a further 1,500 apartments are due to handover before the end of 2017, Asteco said.
“We are experiencing a weak labour market with reduced employment opportunities and a tightening of housing allowances. This, together with additional supply since 2016 has led to increased vacancy rates which we expect to continue into 2018. Landlords are discounting rents and offering flexible payment terms, (up to 12 cheques) to retain existing tenants and secure new leases,” said John Stevens, Managing Director, Asteco.
Villa rental rates decreased by 3% QoQ and by 6% YoY.