Abu Dhabi rental mar­ket is pick­ing up ac­tiv­ity

Turnover in­crease making up for the lower com­mis­sions

The National - News - Business - - The Region - Lucy Barnard lbarnard@then­ational.ae

Prop­erty bro­kers in Abu Dhabi are re­port­ing a pickup in deal ac­tiv­ity as renters search for bet­ter housing deals.

“Vol­umes on new leases for us have been higher this year than at any other time,” said Ben Cromp­ton, man­ag­ing part­ner of Cromp­ton Part­ners es­tate agents in Abu Dhabi. “Peo­ple are mov­ing ei­ther be­cause their bud­get can now af­ford big­ger and bet­ter places due to rent drops or peo­ple are down­siz­ing to con­serve funds. “Sales vol­umes again have been quite strong on new launches but less so on older pro­jects,” he added. “Off plan has been in­cred­i­bly re­silient and new tow­ers com­ing to mar­ket are see­ing legacy buy­ers look­ing to off­load stock at rock-bot­tom prices.”

Mr Cromp­ton es­ti­mates that the in­crease in turnover has been making up for the lower com­mis­sions the com­pany is re­ceiv­ing be­cause of city­wide rental falls, making the busi­ness “about in­come neu­tral”.

He pre­dicts that lease prices in Abu Dhabi will only start to in­crease “once the cur­rent in­ven­tory has been taken up, which is in turn based on whether or not the gov­ern­ment starts hir­ing again. Most peo­ple ex­pect this to start in the first quar­ter of 2018”. Almer Agmyren, man­ag­ing direc­tor of Rex Real Es­tate, fore­casts that the housing mar­ket in Abu Dhabi will re­main quiet for the re­main­der of 2017.

“There has been a decline in rents wit­nessed all over Abu Dhabi, some ar­eas more than oth­ers. Pre­mium lo­ca­tions of course are do­ing bet­ter,” he says. “We are cop­ing with lower vol­umes by focusing more on pin­point­ing units and niche mar­ket­ing for units we know are great deals, both sales and leas­ing.”

Christo­pher Pike / The Na­tional

Bro­kers say cap­i­tal’s lease prices rise af­ter “in­ven­tory has been taken up”.

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