The Marina Square area of Reem Island. Sammy Dallal / The National
The Marina Square area of Reem Island. Sammy Dallal / The National
The Marina Square area of Reem Island. Sammy Dallal / The National
The Marina Square area of Reem Island. Sammy Dallal / The National

Abu Dhabi's residential sales set for further declines, says Core Savills


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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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“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.

Results
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While you're here
Match info:

Real Betis v Sevilla, 10.45pm (UAE)

The Breadwinner

Director: Nora Twomey

Starring: Saara Chaudry,  Soma Chhaya,  Laara Sadiq 

Three stars

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Transmission: 10-speed automatic

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Multitasking pays off for money goals

Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.

That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.

"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.

Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."

People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.

"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."

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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Intercontinental Cup

Namibia v UAE Saturday Sep 16-Tuesday Sep 19

Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

MATCH INFO

Sheffield United 3

Fleck 19, Mousset 52, McBurnie 90

Manchester United 3

Williams 72, Greenwood 77, Rashford 79

Women & Power: A Manifesto

Mary Beard

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