The capital of the United Arab Emirates enjoyed double-digit growth in its residential property market last year, with forecasts of sustained rental growth and stabilising prices for 2015.
According to the Middle East’s largest real estate company Asteco , Abu Dhabi’s property market strengthened over the last two years and is now set for continued rental growth across all sectors, encouraged by a beneficial investment climate.
In 2014 transaction volumes for apartments and villas rose by 15% and 16% respectively with an exceptional performance in the first half of the year, driven by a housing supply shortage.
Sales in Abu Dhabi have risen consistently
Jerry Oates, general manager of Asteco Abu Dhabi said: " Popular master-planned developments for sale included Saadiyat Island and Al Raha Beach while Reem Island proved to be an attractive area providing more mid-market units. We expect apartment sales to remain stable this year as the market becomes more competitive due to the imminent handover of new projects ".
Data shows that apartment sales in Abu Dhabi have risen consistently since 2012, up 48% on average across the Emirate but still 26% lower than the peak of 2008. Villa sales have also increased 47% on 2012 transaction volumes but still remain 11% lower than Q4 2008.
Apartment sales are predicted to grow at a greater rate than villas in 2015 due to a shortage of supply at the high-end of the market.
In the rental market, increases of 20% have been enjoyed year-on-year since 2012, with rental rates for both apartments and villas being considerably more affordable than in 2008 by more than 40%, indicating further growth potential.
Jerry Oates added: " The Abu Dhabi rental market in 2015 is expected to see continuous strong levels of demand. A range of new projects are due for handover in 2015 including an anticipated 13,000 apartments and villas which will come online that will have an impact on the Abu Dhabi real estate market by creating greater competition, particularly in apartment rents ".
Abu Dhabi is the second most populated Emirate after Dubai although larger in terms of land mass and has a highly-developed infrastructure. As the UAE’s financial hub, there is a large and growing professional community comprising both expatriates and Emirati citizens, driving growth in the domestic rental market.
The UAE’s construction sector has responded to the growing demand for rental apartments in terms of new-build apartments although the high-end of the market remains under-supplied, expected to restrict transaction growth in this market during 2015.
Source:: Property show rooms