Cityscape: Rise in Abu Dhabi luxury property prices, rents
Sales prices for prime real estate up 9 percent, rents up 4 percent in first quarter
Buying or renting a luxury home in Abu Dhabi is becoming even more expensive, according to a report released today at the Cityscape real estate show.
Prices of ‘prime’ residential properties grew by 9 percent during the first quarter of 2014, building on a 25 percent growth in high-quality housing during 2013, according to JLL. The real estate firm noted that these numbers were based on a “limited” number of transactions.
Rental rates for prime properties grew by 4 percent in the first three months, following a 17 percent rise in 2014, JLL said in its Abu Dhabi Real Estate Overview.
JLL said the removal of a “rent cap” on prices is “expected to lead to rents increasing further this year.”
“The Abu Dhabi real estate market… continued to show signs of growth and recovery during Q1 2014,” JLL said. “This optimism remains focused on the prime residential sector which witnessed increased rents and prices and near to full occupancy.”
The number of residential units in Abu Dhabi increased by 1,700 units in the first quarter, bringing the total stock to around 238,000, JLL said.
“It is encouraging to see further signs of growth and recovery,” said David Dudley, head of JLL’s Abu Dhabi office.
“A two tier market exists with a significant divergence between high and low quality product (in terms of quality of location, design, functionality, asset management etc). Sustained market recovery is very much dependent on continued government investment [in] infrastructure and economic development to boost demand”.