UAE has witnessed a decline in the villa and apartment sales and rental rates in the first quarter of 2018, Invest-Gate reports.
Abu Dhabi’s apartment and villa rental rates saw decreases of 3% and 2% respectively in Q1-18 and an annual drop of 11% and 9%, according to Asteco’s Abu Dhabi Real Estate Report for Q1-18.
Around 1,600 residential units were handed over in Q1-18, with more than 75% located within investment zones, including Yas Island, Al Reem Island, and Al Raha Beach.
“Although healthy demand for high-quality, off-plan and newly delivered projects continued, lower-end residential units remained under pressure throughout the first quarter of 2018,” according to Asteco Managing Director John Stevens.
Q1-18 saw the launch of several new projects such as the Al Fahid Island Master Development by Al Nahdha Investment and the Reflection Towers on Reem Island by Aldar, according to the report.
“While more than 7,300 units are earmarked for handover before the end of 2018, based on previous delivery patterns, a number of these are likely to be delayed, spilling over to 2019,” Stevens adds.
As for Dubai, villa and apartment sales declined 6% and 9% respectively, with large villas at high price points generating limited interest, mainly due to the lower investment yields associated with this type of product.
Approximately 3,625 residential units were handed over in Q1-18, with a total of 30,000 potentially to be delivered by Q4-18. Most of the recent inventory is located in the new investment areas along the Sheikh Mohammed Bin Zayed Road (E311) and Emirates Road (E611) corridors.
