Dubai: Abu Dhabi’s mini “islands” will receive the bulk of the new homes to be delivered this year and the next, which would ensure prices remain in the straight and narrow. Of the projected 5,330 units scheduled for delivery this year, 12 per cent are complete, according to data from ValuStrat.
“More than 82 per cent of the 623 units completed during the first quarter were all on Yas Island,” the report states. “Al Reem Island could receive 35 per cent from the remaining residential units under construction which includes Hydra 55 [550 units], Meera Residence [408 units] and M Tower [232 units].”
But will more supply add to pricing pressures in the freehold space? “Abu Dhabi’s residential capital values have been declining for the last two years,” said Haider Tuaima, Head of Real Estate Research at ValuStrat. “However the rate of decline seems to have slowed over the last nine months at a rate of less than 2 per cent per quarter. It will be interesting to see if this trend continues in the medium term.”
Over a 12-month period, residential capital values in Abu Dhabi are down 7.5 per cent, according to the consultancy. Median residential asking rents in Abu Dhabi fell 8 per cent compared to the same period last year.