Apartments in Abu Dhabi have witnessed a 0.5% decrease in rental prices in the third quarter (Q3) of 2016, according to a report by Cavendish Maxwell, reported Arabian Business.
The report also stated that the decline recorded average annual falls to 3%. Apartment and villa rentals have declined to 1.8% and 2.4% respectively, which are considered high declines, due to job losses and oil prices that have pushed down demand for larger units.
Saadiyat Beach villa rentals have decreased by 2.7% in Q3. Meanwhile, well yields recorded between 4% and 7% during the quarter.
The UAE is currently facing a high demand on small, affordable units, according to Jonathan Brown, Head of the Abu Dhabi Office at Cavendish Maxwell, adding that this has affected occupancy in large units, which also encouraged developers to meet this new demand.
Approximately 724 units were completed in Q3, and 5,000 units are under construction for completion in Q4 in Abu Dhabi.
A total of 12,000 units are expected to be added in investment zones between 2017 and 2018, the report added.