Abu Dhabi realty market 'picking up'
Abu Dhabi, May 31, 2009
The Abu Dhabi real estate market is witnessing signs of increasing activity with investors and end-users showing renewed interest in new projects, said Landmark Advisory, one of the leading real estate consultancy companies in the Middle East.
"There has been a noticeable increase in terms of sales as more developments are nearing completion," said Jesse Downs, director of research, Landmark Advisory, at the launch of its first sales price map for Abu Dhabi.
The guide is designed to be a reference tool for prospective buyers looking to invest in property in the capital and follows the regular release of their Dubai price map, he noted.
"We have witnessed more end-users emerging as buyers as they become more confident in investing in the market again and we expect this interest to increase as more units become available," he added.
Registered sales and an increasing amount of queries have been witnessed in areas such as the Arabian District in Al Reef Villas and towers in Al Reem Island, including Marina Square and Sun and Sky Tower, due to their completion coming at the beginning of 2010.
Listing prices for these areas remained stable during April and only witnessed marginal declines; an indication of emerging price floors on these developments, he noted.
While the buyer profile in Abu Dhabi clearly points to the end-user, profitable investment opportunities are still evident.
Al Reef villas currently present excellent potential market yields, but Landmark Advisory believes that in the long-term, Marina Square and Sun and Sky Tower are likely to be better investments for the area.
This is due to their proximity to Abu Dhabi City centre, and an undersupply situation in the apartment segment for at least the next three years.
Landmark Advisory also noted that the first phases of some key developments were set to be completed within the next six to nine months.
“This will create additional stock in an under-supplied market which will provide relief and additional options to Abu Dhabi residents,” explained Downs.
“The delivery of these units will be the first of the recent freehold era in Abu Dhabi and we predict that the handover will boost the market and renew interest from end-users and investors following what we have already seen in regards to sales increasing,” he added.
As indicated by Landmark Advisory’s price map, Abu Dhabi Residential market prices are still showing signs of readjustment.
While average prices for apartments have declined 5 to 10 per cent since the end of first quarter of 2009 (a total decline of 30 per cent since third quarter of 2008), villa prices have, however, remained stable as previously severe price declines (up to 45 per cent), since third quarter of 2008 begin to stabilise.-TradeArabia News Service