Abu Dhabi may see 11,000 more homes in Q4
Abu Dhabi, October 16, 2011
Abu Dhabi's real estate market may see further pressure in the fourth-quarter with an additional 11,000 homes scheduled to be handed over during the period, a report by property consultants Jones Lang LaSalle said on Sunday.
About 2,800 residential units were already delivered in the United Arab Emirates' capital in the third quarter, the report said. "Handovers will increase significantly in Q4," said the JLL report.
"Up to 11,000 units are scheduled for completion, but some of these projects may experience further delays in the final stages of permitting."
The majority of the units delivered in the third quarter were from phase one of Al Zeina on Raha Beach, Yas villas and the Capital Plaza residential towers. These completions took the total current residential stock to approximately 193,000 units.
Future supply is mainly consists of units at Marina Square, Etihad Towers, and Al Reef villas and apartments.
Most Abu Dhabi developers have been focusing on completion and delivery of existing projects after suffering big losses during the global financial crisis, which put an end to a six-year construction boom.
Abu Dhabi's supply of residential homes could reach 246,000 units by the end of 2013, the report said, despite many of the projects announced prior to 2008 were delayed or cancelled.
Average home prices in Abu Dhabi also dropped by seven percent while rents fell by four percent in the third quarter.
Prices fell to 11,000 dirhams per square metre from 11,800 dirhams per square metre.
Neighbouring emirate Dubai will see its house prices plummet by 10 percent due to oversupply, Reuters poll showed in July. - Reuters