Residential property prices in Abu Dhabi increased 1.5 per cent in the 12 months to March, as the wider UAE market made a strong start to the year, according to a report by property consultancy CBRE.
Average apartment prices increased 1.6 per cent in the year to March, to Dh10,904 ($2969) per square metre, while average villa prices rose 1.1 per cent to Dh8,850 per square metre.
The capital also saw average rents rise 0.6 per cent during the period. However, while apartment rents were up 1.1 per cent, villa rents fell by 1.6 per cent.
New supply in Abu Dhabi "remains limited", with less than 200 new units delivered in the first quarter of 2022, the report said.
A further 9,588 units are scheduled for delivery during the remainder of the year, mostly in Al Raha Beach, Al Maryah Island and Reem Island.
In the office sector, visitation to workplaces in Abu Dhabi sits 25.3 per cent above its pre-pandemic baseline, according to Google mobility data. CBRE estimates visitation to workplaces is up 4.1 per cent in the year to date.
The majority of demand in the private sector has been for flexi-work solutions, while demand for more traditional office space "continues to stem largely from organisations with direct or indirect government links", the report said.
"Average rents, in the year to Q1 2022, have decreased in the Prime and Grade A segments of the market by 7.9 per cent and 3.9 per cent respectively," it said.
"Over the same period, Grade B rents remained stable."
Abu Dhabi’s “best [office] buildings continue to demonstrate rental resilience”, with average rents in the Corniche area climbing 7.2 per cent annually to Dh1,675 per square metre, an earlier report by Knight Frank said.
The UAE's property market has improved on the back of the broader economic recovery in the country amid the easing of pandemic-related restrictions, travel curbs and high oil prices.
The country's gross domestic product for 2021 beat the World Bank's forecast at 3.8 per cent, surpassing the growth that it registered in 2019, before the coronavirus pandemic, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said earlier this month.
The UAE's economy is expected to grow 5.7 per cent in 2022, helped by an increase in oil production, according to Emirates NBD Research.
"While higher oil and food prices pose upside risks to inflation globally, higher oil prices will generate budget surpluses," the report said.
The UAE’s property market has also recovered on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme.
Meanwhile, residential property prices in Dubai also surged 11.3 per cent annually in the first quarter of this year, CBRE said.
"Total transaction volumes in the year-to-March 2022 reached 19,009, and this is the highest total ever recorded in the first quarter of the year," it said.
Average rental rates during the period also rose 13.1 per cent, marking the highest rate of growth recorded since December 2014.
The UAE property market is expected to receive an influx of buyers following an overhaul of the visa residency system.
The changes, set to come into effect by September, include parents being able to sponsor their male children until the age of 25, and property investors able to obtain Golden Residence when purchasing a property worth no less than Dh2 million.
UAE currency: the story behind the money in your pockets
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The biog
Name: Abeer Al Shahi
Emirate: Sharjah – Khor Fakkan
Education: Master’s degree in special education, preparing for a PhD in philosophy.
Favourite activities: Bungee jumping
Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.
Getting%20there%20and%20where%20to%20stay
%3Cp%3EFly%20with%20Etihad%20Airways%20from%20Abu%20Dhabi%20to%20New%20York%E2%80%99s%20JFK.%20There's%2011%20flights%20a%20week%20and%20economy%20fares%20start%20at%20around%20Dh5%2C000.%3Cbr%3EStay%20at%20The%20Mark%20Hotel%20on%20the%20city%E2%80%99s%20Upper%20East%20Side.%20Overnight%20stays%20start%20from%20%241395%20per%20night.%3Cbr%3EVisit%20NYC%20Go%2C%20the%20official%20destination%20resource%20for%20New%20York%20City%20for%20all%20the%20latest%20events%2C%20activites%20and%20openings.%3Cbr%3E%3C%2Fp%3E%0A
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
The specs: 2019 BMW X4
Price, base / as tested: Dh276,675 / Dh346,800
Engine: 3.0-litre turbocharged in-line six-cylinder
Transmission: Eight-speed automatic
Power: 354hp @ 5,500rpm
Torque: 500Nm @ 1,550rpm
Fuel economy, combined: 9.0L / 100km
