Abu Dhabi’s res­i­dents head for the ‘ci­ties’

Khal­ifa, Mo­ham­mad Bin Zayed ci­ties at­tract­ing bud­get-con­scious buy­ers and tenants

Gulf News - - Region -

Lo­ca­tions such as Al Kha­lidiya and Mo­ham­mad Bin Zayed City are buck­ing the trend of poor de­mand and rental pres­sure in Abu Dhabi. Th­ese res­i­den­tial neigh­bour­hoods along with Muroor are rated the best per­form­ers, ac­cord­ing to the new up­date from Ch­ester­tons. Khal­ifa City is another area favoured by cost con­scious tenants.

Th­ese lo­ca­tions cur­rently of­fer a fair sup­ply of stu­dios with rents be­tween Dh29,000Dh55,000. But in other lo­ca­tions, rents re­main un­der pres­sure, with a de­cline of 2 per cent recorded in the third quar­ter for apart­ments and 1 per cent for vil­las.

Un­der se­vere stress are the homes in Al Raha Beach, Al Ghadeer, Al Reef, Reem Is­land and Saadiyat Is­land, where stu­dios range from Dh39,000 to Dh105,000 and three­bed­rooms from Dh110,000 to Dh196,000.

Ac­cord­ing to Ivana Gazivoda Vucinic, Head of Ad­vi­sory and Re­search at Ch­ester­tons Mena, “In the first half of 2017, we saw a num­ber of eco­nomic fac­tors place down­wards pres­sure on the Abu Dhabi hous­ing mar­ket in­clud­ing low oil prices, in­creased stock in the sec­ondary mar­ket, a ris­ing cost-of-liv­ing and work re­dun­dan­cies.

“In third-quar­ter 2017 th­ese fac­tors con­tin­ued to steer mar­ket per­for­mance while the an­nounce­ment of new high-end projects raised cau­tion.”

In the villa rental mar­ket, Al Ghadeer posted the high­est de­cline in aver­age prices, drop­ping 8 per cent over the quar­ter. This com­pares to the trends recorded in Al Kha­lidiya, where prices in­creased by an aver­age of 4 per cent, Al Reem Is­land and Khal­ifa City, which both posted a 3 per cent in­crease in prices, rais­ing the aver­age quar­terly re­sults.

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