subject: Abu Dhabi real estate [print this page] Abu Dhabi real estate Abu Dhabi real estate
It is been reported that Abu Dhabi real estate is been declining at a fast pace. A mere 7% decline in rents and leases was witnessed in the 4Q of 2010 and it is expected to decline further this year. The prime reasons for this fall in Abu Dhabi real estate prices are reduced housing allowance by companies, price driven demand and land owners being flexible with rates.
According to Asteco report, leasing rates for Abu Dhabi apartments in the outskirts fell by an average of 7% and the rates of apartments within the city dropped by 6%.
Cluttons report that the annual rents for single bedroom apartments in areas like Mohammed Bin Zayed City are AED 50,000 currently, while in the northern areas it is nearly AED 110,000.
While there was a decline of 30% in the residential property prices of Abu Dhabi, Dubai saw a drop by more than half.
Abu Dhabi being the capital and most rich among the UAE is a true paradise. If you are planning to invest in gulf real estate, Abu Dhabi is the ideal place beyong doubt. So go through these snap shots before caving upon a decision on investment in Abu Dhabi real estate.
Abu Dhabi real estate market snapshot:
Residential Sales:
Marina Square and Al Raha Beach are the most expensive areas in Abu Dhabi.
Residential supply is expected to reach over 230,000 sq metres by 2013.
Commercial:
Average rents for prime office space have fallen by almost 50% since 2008.
Commercial supply is at an all time high in Abu Dhabi, with over 400,000 square meters of office space due to be released to the market over the next 18 months.
