5 November 2009
CB Richard Ellis predict that residential rents in Abu Dhabi will stabilise in 2010, following moderate price falls in the third quarter of this year, acting as a further indicator that the Abu Dhabi property market is improving.
The economic and property downturn in the UAE capital has not been anywhere near as severe as neighbouring emirates such as Dubai, where property values and rents have plummeted over the past year.
The fall in Abu Dhabi apartment rental values slowed to around 5% in the third quarter, compared to Q2, according to data supplied by CB Richard Ellis.
Despite the improving residential rental sector, the sales market remains flat, with very few homes in Abu Dhabi selling at this moment in time, partly due to a shortage of supply.
An extract from a CBRE report said: “Compared to other emirates, the Abu Dhabi market is expected to maintain a relatively strong position fuelled by the existing meagre supply across virtually all asset classes.”
Investment bank HC Securities & Investment (HCSI) projects that Abu Dhabi could have an undersupply of as many as 75,000 homes by 2011.
See Also: Marc Da-Silva (269), Abu Dhabi (13), UAE (24)
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