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Around 37 per cent of residential units in Abu Dhabi in 2015 were vacant, with the units not sold or leased to any investors, according to a spokesman from the emirate’s Department of Municipal Affairs (DMA).
Abdullah Al Beloushi, executive director of the land and property management sector at the DMA, said on Tuesday there were targets to reduce the figure to 8 per cent by 2020, but declined to elaborate further.
Rental rates and sales prices have been climbing in Abu Dhabi in the past few years as demand continued to outpace supply.
In 2015, apartment rental rates rose 5 per cent on average, with prime properties achieving up to 10 per cent growth.
Apartment sales prices also registered an increase of 3-4 per cent in 2015, according to the latest report by Asteco, a real estate services firm.
This year, prices are still not expected to drop as demand is sustained.
Al Beloushi was speaking at a seminar held by the Abu Dhabi Chamber of Commerce to discuss the emirate’s latest property law that came into effect in January 2016.
Also speaking at the event was Mubarak Al Ameri, a member of the board of directors of the Chamber, who said that the law, Number 3 of 2015 regulating the real estate sector, is expected to boost the industry and raise investor confidence.
Officials said, however, that as the law mandates specific regulations for those working in real estate, around 75 per cent of brokers may go out of business as they fail to meet the requirements.
Source: Sarah Diaa, Staff Reporter, gulfnews.com