Abu Dhabi rents to see further declines into 2017by Jumana Abdel-Razzaq on Dec 7, 2016
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Further declines are expected for Abu Dhabi residential rents into 2017 with prices steadily dropping throughout the year, according to a Cluttons report.
Rents in the city have fallen 9.4% across Abu Dhabi's residential investment areas from the beginning of 2016 as declines outpaced a fall of about 5.2% in the value of homes over the same period, the report highlighted.
Faisal Durrani, the head of research for Cluttons said: "We have seen a notable acceleration in the residential market correction as a result of increasing global economic uncertainty and the protracted oil and gas sector's decline, building during Q3 and being further exacerbated as we wait to understand the full impact of Mr Trump's election as president of the United States of America.”
Cluttons predicts that villa values will have fallen by 10% by the end of the year while apartment values expect a 4% fall across the city.
High-end villas recorded the biggest fall in rents as well as premium areas such as Saadiyat Island, which saw a drop of nearly 25% between January and September.
Rents on the island were expected to fall further in the fourth quarter.
The report said that the villa rental market had borne the brunt of the slowdown, with average villa rents falling 20% in 2016.
"This, combined with continued market softening across residential and office markets has led to nervousness among investors, with many reluctant to commit to purchases until they see signs of stabilisation,” added Durrani.