Capital’s apartment rents drop 8% in Q3
Asteco report finds that there is a widening gap between prime developments and rest of the market
Asteco report finds that Abu Dhabi apartment rents fell 8% in Q3 on the back of increased supply of residential units.
Asteco has said apartments rents in Abu Dhabi fell by 8% in the third quarter, as 7,400 apartments and 1,675 villas were added to the UAE capital’s property market since the start of this year.
Several quality developments have generally sustained their current rental rates over the last quarter given strong levels of demand, but vacancy levels have increased and rates dropped at older buildings, which were formerly considered prime, as tenants relocate, the report said.
“Consequently there is a widening rental gap between prime developments and the rest of the market,” said Elaine Jones, CEO of Asteco.
“In addition, the new regulations being implemented linking the renewal of residency visas with accommodation arrangements is starting to impact the market with an increase in demand for mid-to-low budget, two-to-three bedroom apartments in central Abu Dhabi,” added Jones.
Villa rental rates were relatively unchanged, the report said, with Al Reef showing the largest fall of 4% over the past quarter.
Commercial leasing activity continued to improve as quality office space became available at attractive terms.
With over 24,000 m2 of leasable space, Nation Towers, which will be ready for tenant fit-out by the year end, is already 90% pre-leased, with heavy demand from government entities, Asteco said in the report.
