Abu Dhabi targets 4,000 new homes by 2018
Real estate consultancy JLL said Q2 Abu Dhabi rental prices dropped by 99% year-on-year
Up to 4,000 new homes could hit the market in Abu Dhabi by the end of 2018, putting greater downward pressure on property prices.
Organisers of International Real Estate Investment Show (IREIS) in Abu Dhabi said the flurry of new residential units will put more strain on the housing market, which according to some experts has seen a double-digit decline in rental prices this year. Real estate consultancy JLL said Q2 Abu Dhabi rental prices dropped by 99% compared to Q2 2017.
With the bulk of new units set to be delivered on Reem Island, Yas Island, and Al Raha Beach, these luxurious areas could become more affordable for homeowners, renewing investor confidence in the market.
The price decline could support the real estate by stimulating freehold sales in volume, rather than in value.
IREIS claimed the market will be given an extra boost from recent economic reforms, infrastructure investment, and the Ghadan 2021 economic stimulus package that will cut costs and support construction by reviewing building laws.
Antoine Georges, managing director or IREIS organiser Dome Exhibitions, added: “Due to the government’s investment programme and the reforms, we expect the real estate market to bounce back sooner than expected.”