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Abu Dhabi: The Abu Dhabi real estate market remained stable during the third quarter of this year, with little to no movement on average in residential sales or leasing prices, according to the latest Asteco’s Q3 2014 real estate report.
While average apartment sales prices showed little change quarter-on-quarter, there was a 28 per cent increase seen on annual basis to the end of the third quarter of 2013.
The trend was mirrored by villa sales prices, which were flat during the quarter, but still achieved an average annual increase of 14 per cent across the market.
“The popularity of developments within investment areas is a trend that continues to be simulated quarter-on-quarter as sales prices firm up. The sales volumes achieved by Aldar [Properties] on the Ansam and Al Hadeel projects at Al Raha Beach and Yas Island have highlighted the robust demand for the right type of product within investment zones,” said Jerry Oates, general manager at Asteco Abu Dhabi.
Speaking to Gulf News, Oates said that the year saw fluctuations in prices due to the removal of the rent cap, and the government insuring that Abu Dhabi employees live in the emirate. “As much as there is interest in Abu Dhabi, it is affected by what’s going on in Dubai, and Dubai has stabilised as well,” he said.
Meanwhile, Mathew Green, head of research at CBRE, a global real estate adviser, attributed the relative stability during the third quarter to the lack of activity during the summer months.
“Traditionally, the third quarter is a quieter period than the rest of the year, perhaps this year more than any because of Ramadan, which is a quiet period in itself. We always expect the third quarter to have a little bit of a dip,” Green said.
The market received a vote of confidence with the launch of the Mamsha Al Saadiyat on Saadiyat Island. The 400-plus luxury residential unit starts at an average sales price of Dh2,000 per square foot. The development is expected to act as a catalyst for additional projects set for launch in 2015.
Raha Beach was static, with asking prices close to Dh1,500 per square foot, bringing year-on-year growth to 24 per cent.
Standard Saadiyat Beach villas topped out at Dh5.5 million for three bedrooms, showing an 11 per cent annual increase, whereas a three-bedroom unit in Hydra Village remained at Dh1.3 million.
Growth for low to mid-end apartment unit developments such as Reef Downtown dropped a further two per cent in Q3. Prices ranged from Dh900 to Dh1,100, showing a 52 per cent year-on-year increase.
Low-end properties on Abu Dhabi Island showed a quarter-to-quarter decrease of five per cent for units in Central Abu Dhabi, according to the report.
Asteco’s Oates said there was a relative equilibrium in the supply-demand equation, and expected both to increase.