Q1 residential sales flat in Abu Dhabi as rental demand rises

Abu Dhabi’s residential sales market remained “muted” in the first three months of 2016 with prices remaining largely stable, according to CBRE’s quarterly market update.
However, while there was “weak” appetite for property purchases in the first quarter of this year, demand for rentals remained strong, with affordable residences highly sought after and capable of generating up to two percent rental growth, said CBRE.
Conversely, larger apartment units and premium properties in Abu Dhabi are experiencing softening rentals meaning that, on balance, there was little change in average market rental rates.
Mat Green, head of research and consulting UAE at CBRE Middle East, said: “Lease rates in areas such as Corniche and Khalidiya remained high with prime rentals for one- and two-bedroom units currently around AED120,000 ($32,600) and AED180,000 ($49,000) respectively.

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