Dubai: The average asking prices for homes in Abu Dhabi’s investment areas have increased eight per cent in the first quarter of 2013 but do not reflect a market-wide recovery, according to a report by Jones Lang LaSalle (JLL).
Average prices in investment areas rose to Dh11,000 per square metre from Dh10,200 in the fourth quarter, according to JLL’s Abu Dhabi Real Estate Market Overview. Average asking prices reached approximately Dh12,000 per square metre for apartments and Dh9,900 per square metre for villas.
However, the price rises are restricted to investment areas and do not reflect a market-wide recovery, the report stated.
The property consultancy attributed the rise to Abu Dhabi’s ‘safe haven’ status amid region-wide political unrest, increased job stability encouraging people to buy rather than rent property, and improving facilities in masterplanned areas.
“There is also additional demand from investors looking to capture price growth from a potential future upswing,” the report stated.
In terms of rentals, the wider market continues to see declining rents, resulting in a divergence of the residential market’s performance.
Prime buildings have shown signs of “stabilisation and selective recovery” but secondary stock continues to experience downward pressure on rents, the report showed.
“The properties that will experience the strongest rental recovery are those focused on end user requirements, providing a high level of amenity and facilities in addition to sufficient parking,” the report stated.
“Rents in Abu Dhabi have also become relatively more affordable, as those in Dubai have begun to rise. This has helped to encourage more renters to consider relocating to the capital,” it noted.
Average asking prices for two-bedroom apartments in prime developments reached Dh13,000 per year in the first quarter, an increase of about eight per cent from the last quarter.