Apartment rental and sales prices in Abu Dhabi continued to decline during the second quarter of 2011, with new stock entering the market, continuing to outweigh demand, Asteco said in a new report on Tuesday.
In its latest quarterly assessment of the UAE capital’s property market, Asteco found apartment rental prices declined by an average of nine percent in Q2.
Two-bedroom apartments in quality developments on the Abu Dhabi Corniche, are now leasing for between Dhs140,000 and Dhs170,000, while apartments in Central Abu Dhabi ranged from Dhs120,000 to Dhs140,000, the real estate consultant said.
It added that rents for quality villas, which are still in short supply in Abu Dhabi, remained relatively stable, but additional supply will put some downward pressure on prices as the year progresses.
“The downward trend is unlikely to change in the short term due to further prime stock entering the market across a number of key landmark developments in the second half of the year,” said Elaine Jones, CEO, Asteco Property Management.
“This will encourage existing tenants to look for greater value-for-money in the capital, applying yet more downward pressures on rental prices,” she said.
According to the report, demand for rented villas in Abu Dhabi have remained relatively strong over the quarter.
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