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Developer phases out launch to test market demand

Developer phases out launch to test market demand

Khaleej Times, 24 January, 2019

Dubai: Housing rental rates have indeed decreased in many areas across the UAE, but there are some exceptions, according to the latest data.

Some properties in Abu Dhabi have recently experienced a rise in leasing rates, bucking the overall trend of decline experienced in many locations.

Villa asking rents in the UAE capital posted a 1.5 per cent increase in December 2018 compared to the previous quarter.

It’s the first time in three years that villa rents have shown a positive trend, according to ValuStrat.

“Citywide villa asking rents saw the first quarterly increase in three years of 1.5 per cent, but were 11.1 per cent lower than the same period last year,” the company said.

Overall median residential asking rents also softened by 3.6 per cent on a quarterly basis, with apartments registering a five per cent dip in December 2018 compared to September 2018.

Abu Dhabi’s residential supply is set to increase this year as developers continue to build new homes, and this could put further pressure on rents. About 62 per cent of the total supply that were expected at the start of 2018 have already been completed.

Al Reem Island saw 945 apartments completed, with more than 500 units coming from the City of Lights development, more than 300 units from Shams Abu Dhabi and 73 more from Najmat Abu Dhabi.

Al Reef 2 in Al Samha saw 860 villas completed, while other areas, such as Yas Island, Al Raha Beach and Abu Dhabi Island saw an additional 2,998 residential units.

This year, 3,249 apartments and 2,867 villas are scheduled to be completed.