HomeWorldAbu Dhabi residential market posts solid Q3 growth

Abu Dhabi residential market posts solid Q3 growth

The residential market in Abu Dhabi, UAE witnessed solid growth in the third quarter driven by positive investor sentiment and population growth and potential future under-supply, said a report.

The sales prices for both apartments and villas rose slightly by six per cent to hit Dh16,000 ($4,355) per sq m, while rents for prime residential units remained stable at Dh150,000 ($40,832) per annum, stated property expert JLL in its review on Abu Dhabi housing market for the third quarter.

The housing demand remains strong across all price points driven by population growth, it added.

According to JLL, around 1,200 units were added to the residential stock during the third quarter with the delivery of the B2 building on Reem Island and the Abu Dhabi Plaza Complex on Hamdan Street. Emirati families too received new houses within Al Falah scheme this quarter.

These deliveries bring the total residential stock in the UAE capital to 242,000 units at the end of the third quarter of 2014, stated the real estate consultancy in its report.

JLL said a number of new residential projects have been announced in the emirate during the third quarter. These include the first residential development within the Saadiyat Cultural District, Mamsha Al Saadiyat, by Abu Dhabi’s Tourism Development and Investment Company (TDIC).

This project comprises nine low-rise residential buildings including apartments and townhouses.

The construction work on the three residential buildings within Meena Plaza in Port Zayed is set to restart next month after being suspended. Elsewhere, Aldar Properties has also announced the sale of the B2 building on Reem Island to a joint venture between two Dubai-based investment companies MAG Group and Fortune 5 Investments.

However, JLL warned of a future housing shortage as near term supply deliveries were below historic averages at a time of strong demand and predicted further rental increases over the short term.

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