Apartment rents continued to fall in the second quarter of 2017 and further pressure is expected during the remainder of the year, according to a new report from property firm Asteco.
“Approximately 600 apartments were handed over during the second quarter, and more than 2,000 additional units are expected to be delivered over the next six months, placing further pressure on rates," said John Stevens, managing director, Asteco.
"2017 will continue to be a challenging year for the Abu Dhabi real estate industry,” he said.
Overall, Asteco reported a 4 per cent quarterly decline in apartment rental rates during the period. Prime, high and low-end properties recorded drops of 3 per cent whereas mid-market properties were faced with a softening of 5 per cent.
Meanwhile, apartment sales values softened 4 per cent quarter on quarter and 8 per cent annually, according to Asteco. It said that sales activity improved marginally since the beginning of the year as developers offered more competitive rates.
"Demand for off plan developments in popular locations such as Mamshah Al Saadiyat and The Bridges on Reem Island achieved good transactional volumes," it said in its report.
It was a similar story for apartment rents in Dubai during the second quarter as growing supply continued to force landlords to accept lower rates.