Prices of Abu Dhabi apartments rise by 9%
Rate set to slow this year as more completed units are handed over
Prices for apartments in Abu Dhabi increased by 9% in the first quarter of 2014, but are expected to slacken as more newly-built properties enter into the market.
A new report by property agents Asteco states that the 9% increase in apartment sales was a 2% fall on the previous quarter. Villa sales, meanwhile, climbed by 6%, which was a 3% increase on the previous quarter.
Rent increases were much more modest, up by 1-3% for newly-built apartments but remaining fairly static for lower-quality properties on Abu Dhabi island.
“Rental rates were driven by tenants relocating from Abu Dhabi Island to higher quality and more modern buildings, typically within investment areas," said Asteco Abu Dhabi general manager Jerry Oates.
“Moving forward rental rates are likely to witness moderate growth during the course of the year, as although significant supply was initially forecast for handover, unanticipated delays could push deliveries to early 2015, thereby leading to more stability in supply-demand balance over the year.”