Abu Dhabi property prices remain relatively stable
Abu Dhabi’s real estate sector saw a sedate start to the year with sales rates stabilising after a growth spurt in 2014, along with modest Q1 2015 rental rate increases for specific projects in key locations.
In its Abu Dhabi Property Review Q1 2015 report, Asteco noted that demand for high-end developments in investment areas including Saadiyat Island and Al Raha Beach remained positive with Reem Island marked out as a strong performer in terms of sales transactions.
This was reflected in the rental market where units located in prime projects maintained an occupancy rate of 100% and overall stability in rates, with minor increases registered for certain developments with a number of popular projects registering a 3% increase in rental rates.
“Prime and high-end residential units continue to dominate demand and command higher rental rates compared with other market locations, especially for one and two-bedroom apartments. We are also witnessing a significant increase in demand for affordable units this year,” said Jerry Oates, General Manager, Asteco Abu Dhabi.
“However, we continue to see limited movement in overall villa sales transactions partly due to a shortage of available quality stock and the continued divide in price expectations between purchaser and vendor,” he added.