Abu Dhabi residential market sees sluggish Q1

Alkesh Sharma / EMIRATES BUSINESS

Unaffected by the recurrent economy fluctuations, residential sales market remained largely muted during the first quarter of 2016 in Abu Dhabi. Realtors in the Emirates capital experienced weak appetite for property purchases that was in tandem with overall market sentiment in the region.
These startling findings have been revealed by CBRC Group in its recent report that has been released ahead of Cityscape Abu Dhabi.
Titled Q1 2016 Abu Dhabi MarketView, the report stated affordable residences continue to generate solid demand and modest rental growth, in some cases up to 2 percent. Also there was no major change in average residential prices, which remained broadly stable.
“Residential accommodation within central locations remained the most popular option for smaller household sizes and single occupants, primarily due to the ease of access to transportation networks and proximity to a variety of social facilities and commercial establishments,” said Mat Green, Head of Research and Consulting UAE, CBRE Middle East.
Running for the 10th consecutive year, Cityscape Abu Dhabi, which is being held from April 12-14, presents delegates with a rare opportunity to engage with urban planners who are shaping the Emirate of Abu Dhabi through Plan Capital 2030, Plan Al Ain 2030, Plan Al Gharbia 2030 and Plan Maritime 2030.
“With a continued shortage of affordable homes in the capital, rental levels for lower priced residences will remain strong, with the residential market gravitating towards value amid sustained growth in the cost of living,” added Green.
“Al Raha Beach and Reem Island remain popular investment locations with typical sales rates ranging from AED14,265 – 17,760 per meter-square. Al Reef and Hydra Village, which serve as more cost sensitive locations, had prices ranging between AED8,500 12,375 per meter-square,” he pointed out.
While overall demand levels are down, the market continues to see a flight to quality, with better specification buildings and those well operated by good quality property management teams viewed to have a greater resilience during a downtown, as compared to similar properties of lesser quality.
Major developers from the UAE and abroad are launching a number of high profile projects comprising hospitality, retail, and commercial entities. Abu Dhabi Urban Planning Council (UPC) will also launch many new updates during this high-profile event.
“Through Cityscape, we are able to reach a large audience in a concentrated period of time to explain our role and what we are doing as we move towards Abu Dhabi Vision 2030,” said HE Falah Al Ahbabi, Director General, UPC.