Abu Dhabi's prime office rents pick up

Abu Dhabi's prime office rents pick upImage Credit: Supplied

Office vacancy rates are expected to remain stable, while rental growth gained ground in the third quarter, according to JLL's Abu Dhabi Real Estate Market Overview.

Office rents have increased by 6 per cent in the quarter. For prime space, prices now average Dh1,640 per square metre, up from Dh1,540 per square metre in the second quarter.

Secondary space rents have remained stable at Dh1,180 per square metre.

Meanwhile, around 1,200 units were added to the residential stock in the third quarter with the delivery of the B2 building on Reem Island and the Abu Dhabi Plaza Complex on Hamdan Street. Emirati families have also received new houses in the Al Falah scheme during this quarter.

These deliveries bring the total residential stock to approximately 242,000 units at the end of the third quarter. Sales prices for apartments and villas increased slightly by 6 per cent during the quarter to reach approximately Dh16,000 per square metre. Rents for prime residential units have remained stable at Dh150,000 per year.

Housing demand remains strong across all price points driven by population growth.

''The third quarter recorded the continued growth of prices in the residential market and growth in office rents, with continued stabilisation in the hospitality, retail and office sectors,'' said David Dudley, Head of JLL's Abu Dhabi office. ''All sectors are now positioned in the recovery stage of their cycle, for the first time since 2008.''

JLL also expects a future housing shortage as near term supply deliveries are below historic averages at a time of strong demand and predicts further rental increases over the short term.

Average line store retail rents for malls on Abu Dhabi island have remained stable at Dh3,000 per square metre per year, while rents in malls outside Abu Dhabi increased marginally by 2 per cent to reach around Dh3,000 per square metre per year.

Read up on Abu Dhabi residential sales prices which has risen 6% in third quarter

Source: Property Weekly


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