Abu Dhabi property generates around 5% in Q2 2016

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Abu Dhabi property generates around 5% in Q2 2016

Abu Dhabi property generates around 5% in Q2 2016

Property financial specialists saw an average 5% gross yield over the city of Abu Dhabi, as per Chestertons MENA’s Q2 2016 business sector report.

The property office found that in spite of moderately flat performance in the Q2 2016, revenues in the Abu Dhabi property market have stayed positive.

Property yields in Abu Dhabi topped out at 8.8% amid Q2 2016, as indicated by the report.

Chestertons MENA’s UAE managing executive Declan McNaughton, remark on the findings saying that despite the fact that the business sector has flattened further in quarter half of the year, and saw drops as rental rates and sales plunged further, rental yields nevertheless compensate investors and, giving that, the capital is still the spot to be. Condo in Al Reef Downtown, Al Muneera and Al Ghadeer, scored yields of 8.8%, 7.7%, and 7.5%, individually.”

By and large, apartments observed a drop of 2 percent in rental rates amid quarter half of 2016, as compared to the increase in first quarter. Usual lower-range yearly renting rates for studio and one-room condo charged 40,000 dirham and 52,000 dirham, respectively.

Naughton states that there has been around 2% drop in residential market, with the luxury sector bearing pressure because of a decrease in spending, exacerbated by cuts to government spending because of lower oil costs.

“The rest of the year will see minor drops. In any case, strong yields will still prove well known with financial investors.”

A normal two-room flat in Al Reef Downtown as of now leases for $29,400 or 108,000 dirham every year – a decrease of $545 or 2,000 dirham when compared to the first quarter of 2016. A comparable property in Al Reem Island, in the meantime, costs $38,100 or 140,000 dirham per annum.

Al Bandar stays a standout amongst the most costly areas in Abu Dhabi; a two-room flat would range to $52,550 or 193,000 dirham every year – once more, a reduction of $545 or 2,000 dirham as compared to first quarter of 2015.

The villa rental market in Abu Dhabi’s saw drops across the board in second quarter of 2016. Rental rates ran from $39,500 or 145,000 dirham and $47,650 175,000 dirham for four and five-room villas in the same price category.

Normal sales costs for villas and apartments in Abu Dhabi likewise fell amid the period.

McNaughton clarified they’ve seen a marginal drop this quarter and, at the end of the day, the rate of decrease fluctuation among the communities exhibited mixed conclusions as far as sales cost.

He finished up that the expansion of new units delivered this past quarter, and a further 3,500 expected before the year’s over, will bring about minimal fluctuations amid this time of consolidation.

 

Mohamed Dekkak

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