It’s been a positive regards that from the year 2013, Abu Dhabi has been seen to have the steadfast increase market in residential sector and they are expecting it elevate more for the next 12 months according to Abu Dhabi Market View done by CBRE.
An average of 16% increase in rentals has been noted last 2013, during the first quarter they have recorded 9% which they consider it as the strongest point. On that account, they noticed that one bedroom units has the highest number of rentals with 11% on the same quarter.
They are expecting in three years time that approximately 40,000 new residential units to be raised on different locations noted that 45% of it will be built at Reem Island.
On the other hand, Mat Green research and consultancy head of CBRE Middle East said that, although that the market is growing impressively, it still remains isolated in its performance with significant variation between emirate’s key residential locations and by the age of the specific property.
There is also a widespread tenant migration for new developments upon completion, added that fact that the designs of the housing stock now are dated and unique which resulted for the older units to rental deflation.
With this, residential investment activity is expected to increase this 2014, specifically those master plan locations established within.