Abu Dhabi residential property rents fell to their lowest since 2016 in the second quarter, according to a new report from property consultancy ValuStrat.
The ValuStrat Price Index (VPI) for Abu Dhabi Rental Values dropped 3.4 per cent quarter-on-quarter to 72.3 points, 27.7 per cent below 2016 levels. The index is based on five apartment and five villa locations.
Annually, rents were nearly 7 per cent lower than last year, it said. Villa rents were down 2.3 per cent quarter-on-quarter and 6.8 per cent year-on-year, while apartment rents were down 4.3 per cent quarterly and 7 per cent annually.
“Exceptions to the negative trends included apartments in Al Reef which saw an upward adjustment … while moderate increases were observed in villa listings in MBZ City, Al Reef, and Al Raha,” ValuStrat said in its Q2 report.
It added that the average occupancy rate among a sample of more than 48,000 homes in Abu Dhabi city stood at 80.9 per cent.
An earlier report from property consultancy Asteco stated that rents were largely the same across the city in the second quarter, compared with the first three months of the year.
See Asteco's latest data in the slideshow below:
Average yearly apartment asking rents in the second quarter were Dh47,800 ($13,016) for one-bedroom units, Dh70,500 for two-bedroom units and Dh152,000 for three-bedroom units, according to ValuStrat. Annual villa rents were Dh62,100 for two-bedroom properties, Dh137,600 for three bedrooms and Dh192,150 for four-bedroom units.
Four projects were completed in the quarter — Central Park Towers, Shams Abu Dhabi with 301 units, Al Seef Central and two apartment blocks in Al Raha Beach development with 278 units.
Off-plan projects announced during the quarter included Mayan Yas Island with 512 units, Grove Museum Views Saadiyat Island with 102 units, Alreeman II Al Shamkha with 554 units and AlJurf Gardens 2 with 98 units.
ValuStrat recorded moderate growth for residential capital values during the quarter.
The VPI has increased less than 1 per cent per quarter so far this year, with villas up 1.5 per cent quarter-on-quarter and apartments witnessing stability in prices in the April-June period.
“Annually, the VPI grew 6.2 per cent to reach 71.4 points, as villas increased 8.1 per cent year-on-year and apartments improved 4.3 per cent year-on-year,” it said.
“All properties monitored by the VPI saw annual growth in capital values ranging from 3.9 per cent to 9 per cent.”
Villas in Saadiyat Island recorded the highest annual capital gains at 9 per cent, while Al Muneera Island had the best performing apartments at 6 per cent.
The UAE property market has grown sharply during the past year amid the broader economic recovery from the coronavirus-induced slowdown. Dubai especially has been performing strongly, with a 12-year high in terms of number of sales for July.