Abu Dhabi rents see small Q1 growth as sales prices stabilise

Residential rents for apartments in Abu Dhabi have seen a moderate rental growth during the first quarter of 2016 as supply and demand move towards equilibrium, according to a new report.

The research by Abu Dhabi Islamic Bank and its real estate advisory subsidiary MPM Properties said capital values for completed apartments have remained broadly stable in Q1, driven by low transaction volumes, as both buyers and sellers remain unwilling to enter the market.

It also said that during Q1, approximately 1,000 new homes were delivered to the Abu Dhabi market, comprising predominantly small to medium sized developments in Al Nayhan, Muroor Road and Mohammed Bin Zayed City.

The report said that across the villa segment, weak demand resulted in limited sales in most communities, with developers countering market sentiment by offering attractive payment plans on off plan residential sales to spur demand.

Source