Abu Dhabi residential market witnesses uptick in rental & sales prices
Apartment rental rates for prime buildings are on the increase in Abu Dhabi according to the latest Asteco market report, following a slow start to the year.
In its Q2 2015 Abu Dhabi report, Asteco reported a 6% rise in the last quarter; with the first six months of 2015 recording positive overall market dynamics for the sector.
The majority of prime, high and mid-quality developments increased by 4% to 6% upon contract renewal; whereas new leases were, on average, 8% higher than in Q1 2015.
Some of Abu Dhabi’s most popular prime developments, such as the Eastern Mangroves and St Regis Residences by TDIC, recorded rent renewal increases of 12% and 10% respectively, with long prospective tenant waiting lists, indicating the continued lack of prime quality supply in the capital. However, prime apartment buildings located on the Corniche recorded little or no increase in Q2, with rental rates already at a premium.
Sales prices for apartments and villas remained steady, continuing the trend of the last 12 months, although year-on-year figures showed average positive growth of 4% in apartment sales prices.