Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Abu Dhabi real estate prices rising but no bubble in sight  Join our daily free Newsletter

MENAFN - Arab News - 07/10/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) High demand for high quality developments sends average sales prices up 14 percent to 26 percent year-on-year but still 20-50 percent below 2008 peak, says Asteco Abu Dhabi Q3, 2013 real estate report; rental market mirroring sales trend with new developments attracting Dubai commuters looking to relocate.
The positive sentiment witnessed in Abu Dhabi since the beginning of the year is driving sales prices up. With the lack of units available for sale in quality developments in Al Raha Beach for example, prices have risen by 19 percent to 26 percent compared to the previous year, with some of the smaller units in Al Bandar trading at as high as AED1,520 per square foot.
Similarly, Marina Square and Sun & Sky Towers on Reem Island have witnessed good levels of growth, up by 14 percent and 18 percent respectively, but they are still 43 percent and 50 percent below their respective price spikes in 2008.
Nonetheless, Asteco expects that with the handover of The Gate Towers by year end, the amount of competing supply is likely to hamper growth in the short to medium term. This may be further amplified with the delivery of City of Lights by end of 2014, although delays are likely.
In continuation of last years trend, Reef Villas are still the most popular development, attracting not only Abu Dhabi residents but also return commuters from Dubai, with a five bedroom villa now achieving up to AED2.6 million compared to AED2.1 million last year, which is still 29 percent lower than its 2008 peak. Sales prices for villas in Golf Gardens and Al Raha Gardens rose 9 percent and 13 percent year-on-year but are still 28 percent and 26 percent respectively below 2008 levels.
"While prices are moving upward very quickly, investors should be confident that there is no bubble scenario imminent. If we compare Q3, 2013 prices for these developments to the 2008 boom, its an altogether different picture," said Jeremy Oates, general manager, Abu Dhabi, Asteco Property Management.
"Besides Sun & Sky Towers and Marina Square, Al Muneera and Al Zeina are 31 percent and 33 percent respectively below their 2008 highs, so there is still a long way to go for the market in terms of appreciation," he added.
The leasing market has witnessed similar trends with rents increasing by over 20 percent in many areas compared to the previous year, including high- and mid-end properties. This is mainly due to government employees returning to the city, following the implementation of the Sept.12, 2012 decree governing their emirate of residence.
Dubai commuters are predominantly attracted to the new properties within the city in locations such as Raha Beach, Al Reef and Reem Island, with little interest in the older Main Island real estate. With the exception of Al Reef villa rentals, which grew by 14 percent year-on-year, Golf Gardens, Al Raha Beach and Al Raha gardens saw modest 3 percent to 8 percent annual increases.
"Prime properties such as Nation Tower and St. Regis Residences have seen little growth, given the limited availability in the market. However, if any of the desirable units were to become vacant, we believe that potential tenants would be willing to pay a significant premium on current rates," said Oates.
Rental prices for high-end apartments on Abu Dhabi Island and the new investment areas such as Marina Square and Khalidya/Al Bateen climbed on average by 20 percent to 29 percent respectively, while flats in central Abu Dhabi and the Corniche are now leasing for 43 percent and 42 percent below their 2008 levels.

 


Arab News




  MENA News Headlines
 Nov 27 2014 - Lebanon mourns 'songbird' SabahArab News
(MENAFN - Arab News) BEIRUT: Iconic Lebanese singer and actress Sabah died Wednesday at the age of 87 after a seven-decade career and a colorful love life that kept her in the headlines until the ...

 Nov 27 2014 - Egypt drops ban on 'adults only' filmArab News
(MENAFN - Arab News) CAIRO: An Egyptian court has revoked a government ban on a film by Lebanese star Haifa Wehbe that had been deemed sexually provocative judicial sources said on Wednesday.In April ...

 Nov 27 2014 - Saudi- Prince vanishes from social mediaArab News
(MENAFN - Arab News) NEW YORK: Prince whose distaste for the music industry's conventions is well known has abruptly disappeared from social media after tentative efforts to promote his two new ...

 Nov 27 2014 - Saudi- Cumberbatch quits smokingArab News
(MENAFN - Arab News) LONDON: 'Sherlock' star Benedict Cumberbatch has revealed he left smoking one month back.The 38-year-old actor said staying away from cigarette is helping him stay healthy ...

 Nov 27 2014 - Saudi- Dilip Kumar perfectly fine: Big BArab News
(MENAFN - Arab News) MUMBAI: Thespian Dilip Kumar is 'perfectly fine' says actor Amitabh Bachchan quashing rumors of the former's health scare.Social networking platforms were abuzz with rumors ...

 Nov 27 2014 - Saudi- Turki Khan: Changing society one step at a timeArab News
(MENAFN - Arab News) Dreams ambitions and determination have no limits dedication to those three traits can take that dreamer ambition-seeker and determined young man or woman to places he or she ...

 Nov 27 2014 - Saudi- Exploring fine art through pencilArab News
(MENAFN - Arab News) Eman Al-Qahtani is a successful talented and ambitious young Saudi artist. She combines thoughts and colors in her paintings. She has her own art method; a painting is to deliver ...

 Nov 27 2014 - Saudi- Qatar lifts 22nd Arabian Gulf CupArab News
(MENAFN - Arab News) Qatar rallied to get the better of Saudi Arabia 2-1 to win the 22nd Arabia Gulf Cup football tournament at the King Fahd International stadium in Riyadh Wednesday night.Playing ...

 Nov 27 2014 - Saudi- Al Kabeer climbs to No. 2 after honors sweep in Globe CupArab News
(MENAFN - Arab News) One mighty performance that saw Al Kabeer Frozen Foods sweep honors had the defending champion moving up the leaderboard after the eighth week in the Thursday League 12th ...

 Nov 27 2014 - Al-Taib wins Fastest Car Race 2014 in RiyadhArab News
(MENAFN - Arab News) Ahmed Al-Taib a Saudi topped the Fastest Car Race 2014 which was organized at Dirab Park racetrack in Riyadh. Al-Taib won the race in a Porsche 911 Turbo which is characterized ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help