Dubai: Limited vacant housing stock and tight supply has limited the price decline in Abu Dhabi, a trend that again showed itself up in the second quarter of 2016 numbers.
Only around 570 residential units were completed in the investment zones during the three month ending June, according to Cavendish Maxwell estimates. These include all apartments located in the Rawdhat area and Shams within Al Reem Island.
Other areas with project completions in the first-half were the residences on Airport Road and Mohammad Bin Zayed City, as well as villas in Najmat area of Al Reem Island.
Even then, “66 per cent of the completed units in the first half of the year were delayed from 2015, while 23 per cent were delayed from the beginning of the year to the second quarter,” the report states.
The key location for upcoming supply will be Al Reem Island, with 90 per cent of these being apartments. Nearly 11,000 units are expected to be added to the investment zones in the city in the next two years.
The muted handover schedules meant over the last 12 months, changes in apartment prices ranged from 3 to 5 per cent across the investment zones, “lower than the 6 per cent average drop in apartment prices in Dubai”.
Average residential prices in Abu Dhabi investment zones have declined nearly 7 per cent since the highs of the second quarter of 2014.
