DUBAI: Residential rents in Abu Dhabi are expected to remain weak for the rest of 2009 after modest declines in the third quarter in central locations, but are likely to stabilize in 2010, CB Richard Ellis said on Wednesday.
“Compared to other emirates, the Abu Dhabi market is expected to maintain a relatively strong position fueled by the existing meager supply across virtually all asset classes,” the real estate services firm said in a report.
The property market in Abu Dhabi, capital of the United Arab Emirates and home to most of the country’s oil, has weathered the financial turmoil better than neighboring regional business and tourist hub Dubai.
Apartment rents in the capital’s central locations fell by around 5 percent from the second quarter and many apartment rents remained unchanged, while prices further out fell by up to 15, it said.
Sales prices fell in the third quarter with sales transaction activity at low levels, it added.
In a separate report earlier this week CBRE said lease and sales rates in Dubai were near a bottom but would see further nominal declines before the end of the year.
Investment bank HC Securities & Investment (HCSI) said Abu Dhabi is expected to have an undersupply of 75,000 homes by 2011.
Property prices in the capital are seen falling 33 percent in full year 2009, while Dubai house prices are expected to decline a further 10 percent in 2009, a Reuters poll showed in October.
Prime office rents fell as much as 40 percent year-on-year to around 2,900 dirhams per square meter as demand dropped sharply. – Reuters
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