Abu Dhabi’s residential sales are forecast to soften further over the next six to 12 months but at a slower pace than before as supply continues to grow, according to a report from consultancy Core Savills.
Sales prices could reach a bottom of Dh1150-1250 per square foot and rental prices of Dh70-75 per square foot over the forecast period, said Andrew Ausama, Associate Director at Core Savills.
“Developers/landlords may resist further drops in pricing as these reductions undervalue their portfolio as lower rental yields affect or may breach bank covenants which may require vendors to increase capital security or reduce debt in keeping with banking requirements,” said the report.
Lower household income, job cuts in the private and public sector and rising inflation have contributed to weak demand for residential property sales, which have dropped between 4 and 16 per cent within the last two quarters, falling faster than the yearly forecast of 15 per cent for the whole of 2017, Core Savills said.
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Read more:
[ Abu Dhabi rents set to slip further in 2018 on new supply ]
[ Where Abu Dhabi villa rents have risen and fallen, Q2 2017 ]
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“Resistance for further drops may result in developers withholding stock in a healthy adjustment mechanism, already witnessed in Dubai in the past 5 years. This would, in turn, cause a prolonged period of lower volumes and flattened sales prices. We expect this plateau to start by end of 2017 and last for a period of 12-18 months,” Core Savills said in the report
The consultany's findings are in line with other property experts.
Abu Dhabi rents are set to drop further next year after declining 11 per cent year-on-year in the second quarter, with upscale areas under performing affordable parts of the emirate, broker CBRE Middle East said earlier this month.
Average rentals for upscale properties dipped 12 per cent, while more affordable units decreased between 6 and 10 per cent, CBRE said.
Employment uncertainty, the rising cost of living and the new supply of property are depressing rents, which have dropped 3 per cent quarter-on-quarter.
Sales price fell 4 per cent in the second quarter and are set for further declines with the delivery of new units over the next 12 months and as investors wait for prices to soften further.
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Engine: Dual synchronous electric motors
Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
Touring range: 591km
Price: From Dh412,500
On sale: Deliveries start in October
Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
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Director: Ridley Scott
Stars: Joaquin Phoenix, Vanessa Kirby, Tahar Rahim
Rating: 2/5
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Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
Company Profile
Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
Killing of Qassem Suleimani
The specs
Powertrain: Single electric motor
Power: 201hp
Torque: 310Nm
Transmission: Single-speed auto
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Touring range: 350km (GS); 480km (GF)
Price: From Dh129,900 (GS); Dh149,000 (GF)
On sale: Now
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Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
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On sale: now
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Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
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Starring: Tara Abboud, Kira Yaghnam, Tara Atalla
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Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
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Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
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Gold
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Khaled Al Shehi – Jiu-jitsu – Men’s -62kg
Faisal Al Ketbi – Jiu-jitsu – Men’s -85kg
Asma Al Hosani – Jiu-jitsu – Women’s -52kg
Shamma Al Kalbani – Jiu-jitsu – Women’s -63kg
Silver
Omar Al Marzooqi – Equestrian – Individual showjumping
Bishrelt Khorloodoi – Judo – Women’s -52kg
Khalid Al Blooshi – Jiu-jitsu – Men’s -62kg
Mohamed Al Suwaidi – Jiu-jitsu – Men’s -69kg
Balqees Abdulla – Jiu-jitsu – Women’s -48kg
Bronze
Hawraa Alajmi – Karate – Women’s kumite -50kg
Ahmed Al Mansoori – Cycling – Men’s omnium
Abdullah Al Marri – Equestrian – Individual showjumping
Team UAE – Equestrian – Team showjumping
Dzhafar Kostoev – Judo – Men’s -100kg
Narmandakh Bayanmunkh – Judo – Men’s -66kg
Grigorian Aram – Judo – Men’s -90kg
Mahdi Al Awlaqi – Jiu-jitsu – Men’s -77kg
Saeed Al Kubaisi – Jiu-jitsu – Men’s -85kg
Shamsa Al Ameri – Jiu-jitsu – Women’s -57kg
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Torque: 850Nm @ 1,600rpm
Fuel economy, combined: 15L / 100km
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Mar 05 Arsenal 1-4 ipswich
March 08 Arsenal 1-2 West Brom
Mar 12 QPR 2-1 Arsenal
Mar 23 Stoke 1-1 Arsenal
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