According to real estate consultancy Asteco, apartment rental rates in Abu Dhabi continued to decline in the third quarter of 2016, Arabian Business reported on Wednesday.
This is a continuation of the trend set in the first half of the year and is attributable to economic uncertainty and a shift in tenants’ priorities, according to the consultancy.
The report says tenants were looking for more affordable rental rates amid difficult economic circumstances, with larger units most affected by the decline as a consequence.
Asteco also says prices for these larger units had effectively fallen by 10%, compared to the last quarter. A great number of vacant smaller apartments had been rented out, demonstrating that the demand is there but had shifted toward more affordable units.