Abu Dhabi apartment prices have fallen by as much as 15 per cent since May, according to a report from the property consultancy Landmark Advisory.
But the completion of the first properties available to expatriate buyers could help to stabilise the market and may even lead to a rise in selling prices.
"It is still a completely off-plan market," said Jesse Downs, the director of research and advisory services at Landmark Advisory, a unit of Landmark Property in Dubai.
"Once product is actually delivered, sale prices for those projects will stabilise and may even improve. During the next year, Abu Dhabi will witness the handover of its first freehold units. This will effectively mark the first time expatriates can purchase completed residential units in the capital."
Most transactions in Abu Dhabi were on projects close to completion, according to Landmark. But few transactions were registered at the Sun and Sky Towers on Al Reem Island and Al Bandar at Al Raha Beach - both of which are due for completion in the second and third quarter of next year - due to their higher price.
Property brokers reported that June and July were the busiest months this year in Abu Dhabi and Dubai, where there were signs of prices stabilising.
"Listing prices have barely changed, but there are far fewer distressed listings for nearly completed developments," Ms Downs said.
Villa prices in the capital are stabilising after declines of up to 45 per cent since the third quarter of last year.
Dubai property prices are also stabilising in preferred locations, with most transactions involving one and two-bedroom apartments, according to Landmark Advisory. But a surplus of studios, which were popular buys among speculators in the boom years, are proving harder to sell.
Other brokers have also reported a pick-up in transaction numbers in the summer, as sellers become more realistic about the market.
"July was the busiest month recorded so far [this year] in Dubai, because people are accepting the levels of pricing," said Iseeb Rehman, the managing director of Sherwoods.
"There is some indication that confidence is coming back. But at the moment things are a little bit erratic. You can go in one area and probably find 10 different price levels, because one seller may be desperate to sell and the other does not really care."
Consolidation among property brokers has also been cited as a possible reason for the summer rise in activity.
"Many brokers have closed up and shipped off, leaving the remaining brokers to get down to business," said Marcello Sambartolo, the head of marketing at the propertyfinder.ae property portal.
"Another reason could be that it's simpler to go up when coming from a low point. Whatever the motive, there's some action."
But Landmark warned that any weakening in Dubai rents could hit selling prices.
"Overall, Dubai sale prices are relatively stable, but if rents keep falling for an extended period, then sale prices could be dragged down as well," Ms Downs said.
Apartment rents in Dubai dropped 23 per cent in the second quarter of the year.
ngillet@thenational.ae
Scoreline
Real Madrid 1
Ronaldo (53')
Atletico Madrid 1
Griezmann (57')
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
COMPANY%20PROFILE
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Young women have more “financial grit”, but fall behind on investing
In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.
While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.
In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all).
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”
Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.
"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions