Investment activity seen to rise in sector with around 40,000 new residential units are forecast for delivery in the capital city over the next three years.
A rebound in Abu Dhabi’s residential market marked by an average of 16 per cent rise in rents in 2013, is expected to give a new impetus to the level of investment activity in the sector.
Around 40,000 new residential units are forecast for delivery in the capital city over the next three years.
Rental increases were highest for one-bedroom units that jumped 11 per cent during the quarter.
The rental gap between properties located “off-island” and those “on-island” remains constant with apartments locations in off-island 44 per cent cheaper than those on the main island. The average annual rental for a two-bedroom apartment unit off-island has moved to Dh66,500/annum comparing with Dh115,000/annum on island.
Average prime rentals for Grade A commercial office spaces remained intact at Dh1,850/sqm/annum. Secondary office rental rates also remained steady at Dh1,200/sqm/annum, while further rental deflation is expected during 2014.
In its latest 2013 price trends report, dubizzle said that the biggest increase in property prices in Abu Dhabi last year was for three-bedroom apartments and villas.