{"id":14068,"date":"2016-05-23T22:01:09","date_gmt":"2016-05-23T15:01:09","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=14068"},"modified":"2016-05-23T20:05:55","modified_gmt":"2016-05-23T13:05:55","slug":"rents-fall-in-abu-dhabi-as-confidence-remains-shaky","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rents-fall-in-abu-dhabi-as-confidence-remains-shaky\/","title":{"rendered":"Rents fall in Abu Dhabi as confidence remains shaky"},"content":{"rendered":"


\nRenters in Abu Dhabi are continuing to downsize to more affordable apartments as lower oil prices cast a shadow over the emirate’s economy, according to the property consultancy Asteco. Julia Knibbs, the company’s UAE associate director of research and consultancy, said that renters are not only seeking moves to more affordable areas, but also to more affordable units within existing communities. “If you take some of the prime developments on the Corniche, the units that have the highest vacancies would be the special units like the big, three-bedroom, four-bedroom and the extra large two bedrooms,” she said. “These are seeing less demand. It’s not that people are leaving the country, but they are a bit more budget-conscious.”Asteco’s new first-quarter property report for Abu Dhabi shows that rents across the city fell by 2 per cent quarter-on-quarter, with the most pronounced declines occurring on Reem Island as more new stock came on to the market.Apartment rents in Shams Abu Dhabi dropped by 6 per cent quarter-on-quarter, ranging from Dh95,000 to Dh120,000 for a one-bed unit, or Dh130,000 to Dh170,000 per year for a two-bed. Rents also fell by 5 per cent in the Khalidiya\/Al Bateen area and 3 per cent on the Corniche. There was virtually no decline in rents at the lower end of the market. Villa rents remained stable, with units at the higher end of the market increasing slightly owing to a lack of quality stock.Ms Knibbs said that the market for selling homes remained subdued.”Very few transactions are happening at the moment,” she said. “People are still waiting to see what will happen. People don’t want to take the step of buying right now, but there are also not many sellers.”The most marked decline in asking prices during the quarter was again at Reem Island. Prices fell by 6 per cent at The Gate and Marina Square, and by 5 per cent at Sun & Sky Towers. Ms Knibbs said that she did not expect much further deterioration in prices because supply remains limited. Just 1,500 new units were launched during the first three months of the year, and these are not likely to be delivered for another three years.”The UPC [Urban Planning Council] has a plan for the city and there’s only so much that gets approved. It’s not as deregulated as Dubai, where new projects are launched all of the time without any proper agreement about whether it makes sense or not. There’s more faith, because supply is controlled.”She also pointed to the recent statement from ratings agency Moody’s, which stated that it expects Abu Dhabi’s government to slow the pace of spending cuts in its 2016 budget to sustain growth.”If that happens, it’s a very positive thing for Abu Dhabi because there is so much related to market sentiment. If there are no further cuts, maybe that is going to improve confidence, lead to more spending and maybe people being a bit less cautious about buying property.”Last week, Mathias Angonin, a sovereign analyst at Moody’s said it expected that “in 2016 there will be a lower decrease in spending that the 20 per cent achieved in 2015″.”We expect Abu Dhabi government’s fiscal consolidation effort to slow because of the need to balance the two objectives of supporting growth and curbing the budget deficit,” he said.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Rents fall in Abu Dhabi as confidence remains shaky<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Renters in Abu Dhabi are continuing to downsize to more affordable apartments as lower oil...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-14068","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-3EU","jetpack-related-posts":[{"id":51334,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-developer-bloom-properties-starts-leasing-apartments-at-al-bateen-project\/","url_meta":{"origin":14068,"position":0},"title":"Abu Dhabi developer Bloom Properties starts leasing apartments at Al Bateen project","date":"April 8, 2017","format":false,"excerpt":"\r Bloom Properties has begun leasing new residential apartments at Bloom Residences, a 225-apartment project that is part of Bloom Marina in Abu Dhabi's Al Bateen area. The company said that the units available for lease are in two new buildings next to the Edition hotel, which is set to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19280,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-dubai-home-prices-and-rents-continue-falling\/","url_meta":{"origin":14068,"position":1},"title":"Abu Dhabi, Dubai home prices and rents continue falling","date":"July 11, 2016","format":false,"excerpt":"\r Villa and apartment prices in Dubai and Abu Dhabi fell between 4 per cent and 6 per cent during the second quarter compared to the same period last year as the economy slows amid softening oil prices, according to the property consultants Cavendish Maxwell. Home prices, however, are expected\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":52279,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/the-cheapest-places-to-live-in-abu-dhabi-in-pictures\/","url_meta":{"origin":14068,"position":2},"title":"The cheapest places to live in Abu Dhabi – in pictures","date":"April 19, 2017","format":false,"excerpt":"\r Rents have been falling in Abu Dhabi over the past year because of the economic slowdown from lower oil prices. The latest property report from Dubizzle and the consultancy JLL forecasts a modest recovery in the coming years, but for now prices should continue to decline in some neighbourhoods.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10510,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-drops-for-abu-dhabi-high-end-rentals-as-budgets-fall\/","url_meta":{"origin":14068,"position":3},"title":"Demand drops for Abu Dhabi high-end rentals as budgets fall","date":"April 11, 2016","format":false,"excerpt":"\r \r Abu Dhabi's rental market is showing signs of fragmentation as softer demand for higher-priced areas contrasts with a shortage of more affordable homes.According to Cluttons, cuts to housing allowances offered by companies in the emirate means there is a much smaller pool of potential tenants for high-end properties,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17348,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-and-abu-dhabi-rents-still-rising-despite-fall-in-demand-report-says\/","url_meta":{"origin":14068,"position":4},"title":"Dubai and Abu Dhabi rents still rising despite fall in demand, report says","date":"June 22, 2016","format":false,"excerpt":"\r Asking rents in Abu Dhabi and Dubai are rising despite a fall in demand caused by falls in the global oil price a new report claims.According to the online property listings portal bayut.com, which analyses property listings, asking rents in Dubai rose 1.57 per cent in May compared with\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":25483,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bloom-holding-looks-to-finalise-deal-on-affordable-housing-project-near-abu-dhabi-airport\/","url_meta":{"origin":14068,"position":5},"title":"Bloom Holding looks to finalise deal on affordable housing project near Abu Dhabi airport","date":"September 8, 2016","format":false,"excerpt":"\r Bloom Holding is hoping to finalise a deal that will allow it to develop a 2.2 million square feet plot of land near Abu Dhabi airport by the end of the year. The chief executive Sameh Muhtadi said that Bloom expects to be able to put about 13,500 homes\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/14068"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=14068"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/14068\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=14068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=14068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=14068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}