The latest Asteco market report has highlighted that the majority of prime, high and mid-quality developments have seen price increases between four and six per cent upon contract renewal while new leases were roughly eight per cent more expensive than in Q1 2015.
This is largely due to a continued lack of suitable supply though sales prices remained broadly stable as rates have peaked at levels that have led to a reduction in transaction volumes.
The report also said that sales prices for apartments and villas remained steady, although apartment sales have proven to recover more successfully with an average growth rate of four per cent.
Some of Abu Dhabi’s most popular prime developments, such as the Eastern Mangroves and St Regis Residences by TDIC, recorded a 12 per cent and 10 per cent increase, respectively, upon rent renewal as virtually no units were vacant and potential tenants were on a waiting list.
This continues to indicate a lack of prime quality supply in the Capital.
Prime and high-end apartment buildings recorded high occupancy rates, most notably in Reem Island as the majority of buildings achieved close to 98 per cent occupancy rates making the one of the most sought after residential areas in the city.
To continue reading, download the report for FREE on the right-hand side panel.