{"id":22875,"date":"2016-08-15T05:01:00","date_gmt":"2016-08-14T22:01:00","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=22875"},"modified":"2016-08-15T03:02:17","modified_gmt":"2016-08-14T20:02:17","slug":"abu-dhabi-rents-and-house-prices-set-for-further-falls-but-yields-still-strong-for-investors","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-rents-and-house-prices-set-for-further-falls-but-yields-still-strong-for-investors\/","title":{"rendered":"Abu Dhabi rents and house prices set for further falls but yields still strong for investors"},"content":{"rendered":"


\nThe prices of homes in the capital are expected to drop further this year, after values dipped by 1 per cent in the second quarter.Rents fell by about 2 per cent in the same period, according to property broker Chestertons.The company said an average two-bedroom apartment in Al Reef Downtown now costs Dh108,000 a year, a reduction of Dh2,000 on the first quarter of the year. A two-bed apartment on Al Reem Island now costs Dh140,000, while at Al Bandar a two-bed unit costs Dh193,000. Rents at the lower end of the market stood at Dh40,000 a year for studio apartments and Dh52,000 for one-bed units, it said. Declan McNaughton, the UAE managing director for Chestertons Mena, said the luxury sector had been hardest hit “due to a reduction in spending, compounded by cuts to government spending due to lower oil prices”. “The remainder of the year will see marginal declines. How\u00adever, solid yields will still prove popular with investors,” he said. Chestertons Mena said average villa yields were 5.5 per cent because of limited supply, but smaller and less expensive units tended to offer higher yields. “Apartments in Al Reef Downtown, Al Ghadeer and Al Muneera all notched yields of 8.8 per cent, 7.7 per cent and 7.5 per cent, respectively,” Mr McNaughton said.Sales prices for apartments averaged about Dh1,340 per square foot, while villas fetched Dh1,088 per sq ft. The company said 500 new homes were completed during the quarter, but that it expects handovers to ramp up during the second half of the year, with an expected 3,500 new units being delivered.This extra stock “will result in marginal fluctuations” in price, Mr McNaughton said.By the end of 2018, about 14,500 new units will be added to the Abu Dhabi market, 80 per cent of which will be apartments and 20 per cent villas, according to a CBRE report last month.Matthew Green, CBRE’s UAE head of research and consulting, said: “With a growing number of new projects in the pipeline, we expect to see an upward trajectory in annual supply in the coming years, with the maj\u00adority belonging to properties oriented towards the upper-mid to high-end segments [of the market]”, he said.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Abu Dhabi rents and house prices set for further falls but yields still strong for investors<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The prices of homes in the capital are expected to drop further this year, after...<\/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-22875","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\/p75ss1-5WX","jetpack-related-posts":[{"id":20756,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/average-abu-dhabi-housing-rents-fall-for-first-time-in-three-years\/","url_meta":{"origin":22875,"position":0},"title":"Average Abu Dhabi housing rents fall for first time in three years","date":"July 25, 2016","format":false,"excerpt":"\r Average housing rents in Abu Dhabi have fallen for the first time in three years driven by thousands of job cuts and an increase in the cost of living.The first signs of long expected falls in housing rents in Abu Dhabi started to appear in the three months to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4017,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-house-prices-to-fall-further-but-at-a-slower-rate-than-last-year\/","url_meta":{"origin":22875,"position":1},"title":"Dubai house prices to fall further, but at a slower rate than last year","date":"February 7, 2016","format":false,"excerpt":"\r \r House prices in Dubai are likely to fall further this year, but at a slower pace than in 2015 even as further supply comes on to the market, according to Asteco.The property consultancy's fourth-quarter report for Dubai and the Northern Emirates stated that villa prices fell by 11\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4019,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-house-prices-to-fall-further-but-at-a-slower-rate-than-2015\/","url_meta":{"origin":22875,"position":2},"title":"Dubai house prices to fall further, but at a slower rate than 2015","date":"February 7, 2016","format":false,"excerpt":"\r \r House prices in Dubai are likely to fall further this year, but at a slower pace than in 2015 even as further supply comes on to the market, according to Asteco.The property consultancy's fourth-quarter report for Dubai and the Northern Emirates stated that villa prices fell by 11\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18762,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rents-at-abu-dhabis-reem-island-may-drop-once-dust-settles-after-summer\/","url_meta":{"origin":22875,"position":3},"title":"Rents at Abu Dhabi's Reem Island may drop once 'dust settles' after summer","date":"July 5, 2016","format":false,"excerpt":"\r Housing rents for existing tenants on Abu Dhabi's Reem Island could fall by as much as 10 per cent by the end of the year, estate agents say.The effect of job cuts across the oil and gas and construction industries and the fall in global oil prices could finally\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44830,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cheaper-housing-in-dubai-suppresses-sharjah-and-ajman-rents\/","url_meta":{"origin":22875,"position":4},"title":"Cheaper housing in Dubai suppresses Sharjah and Ajman rents","date":"February 20, 2017","format":false,"excerpt":"\r The growth in the number of developers looking to provide more affordable housing schemes to buyers in Dubai is having a knock-on effect in the Northern Emirates, with rents falling across the board and some landlords even offering monthly payments and rent-free periods to attract tenants, according to Asteco.The\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4812,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sharjah-and-ajman-property-prices-fall-as-dubai-developers-offer-cheaper-homes\/","url_meta":{"origin":22875,"position":5},"title":"Sharjah and Ajman property prices fall as Dubai developers offer cheaper homes","date":"February 15, 2016","format":false,"excerpt":"\r \r Sales of new homes in the Northern Emirates are likely to remain subdued in 2016 as a \"bleak economic outlook will affect buyer's sentiment,\" according to a new report from Asteco Property Consultants. The Northern Emirates are typically interdependent with Dubai's property market, and with both house prices\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\/22875"}],"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=22875"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/22875\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=22875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=22875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=22875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}