Abu Dhabi, Property Market Outlook, Spring 2017
Cluttons has released its biannual Abu Dhabi commercial and residential report for Spring 2017.
Weak economic conditions, rising inflation, and high costs of living continue to prevail, resulting in a curbing effect in demand in Abu Dhabi’s real estate market, resulting in high vacancy rates in both the residential and commercial markets. Although the market conditions look glum, the rising vacancy rates and falling rents are creating an excellent opportunity for occupiers to cherry pick from locations they may have previously been priced out of, whilst also remaining firmly in the driving seat during rent negotiations.
The Abu Dhabi Property Market Outlook for Spring 2017 indicates that 2016 saw capital values across Abu Dhabi’s residential investment areas decrease by 6% on average. On a similar note, the weaker economic conditions are also affecting the residential rental market.
Like the residential market, the stability of rents in Abu Dhabi’s office market has given way to a widespread softening of rents. During Q4 2016, prime (AED 1,850 psm), secondary (AED 1,050 psm) and tertiary (AED 750 psm) rents all declined by AED 50 psm.