Abu Dhabi assets price increase 6% in third quarter

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All departments of the Abu Dhabi realty market are positioned in the recovery stage of their cycle for the first time since 2008.

Abu Dhabi assets price increase 6% in third quAbu Dhabi assets price increase 6% in third quarter

Abu Dhabi assets price increase 6% in third quAbu Dhabi assets price increase 6% in third quarter

Its third quarter 2014 Abu Dhabi Real Estate Market summary report said built-up, retail, office and hospitality departments now all showed signs of stabilization.

The third quarter of 2014 recorded the continued growth of prices in the residential market and increase in office rents, with continued stabilization in the kindness, retail and office departments. Residential remains the strongest performing department driven by up shareholder response and population enhance and potential future under-supply.

Around 1,200 units were added to the residential stock during third quarter while sales prices up by 6% during third quarter to achieve around AED16, 000 per square meter. Rents for prime residential units remained stable at AED150, 000 per annum.

He said it expects a future housing shortage as close to term supply deliveries are less historic averages at a time of strong require and predicts further rental grow over the short period.

The report show that the office market witnessed growth for the first time in third quarter after being stable for the before two years.

Job rates are decrease due to increased market amalgamation and a decrease in speculative supply in the pipeline.

The report also said that retail rents for malls on Abu Dhabi Island have remained stable this quarter, with some malls outside the Abu Dhabi Island seeing a marginal increase in rents as they have witnessed higher footfalls.

He  added that the Abu Dhabi hotel sector carry on to recover in third quarter, with the year to August seeing high occupancies (71%) compare to 2013 (64%).

Mohamed Dekkak