Abu Dhabi rental market slowing
Average housing rents in Abu Dhabi have fallen for the first time in three years, driven by thousands of job cuts and an increase in the cost of living. The first signs of long expected falls in housing rents in Abu Dhabi started to appear in the second quarter, according to new reports from property brokers JLL and CBRE. The average rental price of a prime two bedroom apartment fell by two per cent in the second quarter of 2016 compared with the first quarter, according to the latest report from real estate services firm JLL.
The latest report from property firm CBRE also shows that there was a two per cent fall in apartment rents in the second quarter of the year while it adds that villa rents fell by an average of one per cent. ‘While supply remains stable, the reduction in demand has now started to cause vacancy rates to nudge upwards, indicating we have now reached a tipping point with rents declining for the first time in three years,’ said David Dudley, head of JLL’s Abu Dhabi office.