Prices in Abu Dhabi’s residential property market were down 8.3 per cent year-on-year in the third quarter of the year, with declines across all areas, according to a new report by real estate consultancy ValuStrat.
Rates were also down 13.8 per cent compared to the same period in 2016, and 3.2 per cent lower compared to the previous quarter.
The weighted average residential value during the quarter stood at Dhs1,023 per sqft, with apartments at Dhs1,135 per sq ft and villas priced at Dhs757 per sq ft.
All the 10 locations monitored by the ValuStrat Price Index witnessed single digit quarterly declines in capital values.
The highest price falls of 4-5 per cent were registered for villas in Al Reef and Hydra Village while price declines of 1.6 per cent were found in Mohamed Bin Zayed City.
“With increased activity reported by some Abu Dhabi’s brokerages, asking sales prices witnessed only marginal changes when compared to the previous quarter, down just 0.9 per cent for apartments and 0.2 per cent for villas,” said Haider Tuaima, head of Real Estate Research at ValuStrat.
In terms of residential supply, the estimated number of homes expected to be completed this year has been cut to 4,390 units, with only 1,969 apartments and 67 villas completed during the past nine months as per latest data.
Al Reem Island and Yas Island received 42 per cent and 27 per cent respectively of estimated completions so far in 2018.
Meanwhile residential rents also fell by 1.3 per cent quarter-on-quarter in Q3, the report said while overall median asking rents fell 11 per cent when compared to the same period last year.
On a quarterly basis, citywide median asking rents were down 1.3 per cent. Apartment asking rents fell 10.7 per cent year-on-year and 1.7 per cent quarter-on-quarter in Q3. While villa asking rents were 12.8 per cent lower than last year, the rates remain unchanged when compared to Q2.
Declan King, managing director and group head Real Estate said: “An apparent deceleration in sales and rental price declines over the third quarter may just be temporary and could gain momentum again later.
“It will be interesting to see if any trend develops and if announced economic stimuli, improved oil prices, and moderate residential new supply have a positive impact on the capital’s property market in the final months of 2018.”
A recent report released Chestertons found that Abu Dhabi residential rental rates were down 3 per cent for apartments and 2 per cent for villas quarter-on-quarter. Apartment and villa sales prices were down an average of 3 per cent quarter-on-quarter, it said.
The report blamed the drop on ongoing redundancies and companies offering lower rental allowances.