Abu Dhabi, Property Market Snapshot, Winter 2016/17
Abu Dhabi’s residential market continued to soften during the third quarter with the fall in capital values outpacing rental declines.
Residential demand has continued to wane over the course of the year, with the primary driver of requirements, the oil and gas sector, still shrinking, with widespread redundancies continuing. Undoubtedly this has undermined demand for property, both for purchase and rent.
After holding steady for over a year, prime and secondary office rents in the city slipped during Q3. Receding demand and a growing amount of secondary space on the market has undermined rents. In fact, rates in some of Abu Dhabi’s prime office buildings have also buckled under the market’s weakness.