Abu Dhabi’s property prices and rentals has witnessed a 1% slide in the second quarter and is expected to further decline, while rental values fell by 2 % during the same period, according to property broker Chestertons, The National reported.
The company stated that the current average two-bedroom apartment located in Al Reef Downtown costs AED 108,000 per year, recording an AED 2,000 decline compared to last year, while a two-bedroom apartment on Al Reem Island currently costs AED 140,000, and a two-bedroom unit in Al Bandar averages at approximately AED 193,000.
Rentals, however, remained steady, averaging at AED 40,000 a year for studio apartments and AED 52,000 for one-bedroom units.
The luxury sector has been the hardest hit, according to UAE Managing Director for Chestertons MENA Declean McNaughton, due to the speed in reduction and cuts to government spending that resulted from lower oil prices, Gulf Business reported.
He also stated that the average villa yields amounted to approximately 5.5% due to limited supply; however, smaller and inexpensive properties offered higher returns.
Apartments were sold for an average of AED 1,340 per square foot, while villas averaged at a price of AED 1,088 per square foot.