{"id":29505,"date":"2016-10-11T21:51:53","date_gmt":"2016-10-11T14:51:53","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=29505"},"modified":"2016-10-11T20:04:30","modified_gmt":"2016-10-11T13:04:30","slug":"decline-in-abu-dhabi-rents-and-house-prices-to-continue","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/decline-in-abu-dhabi-rents-and-house-prices-to-continue\/","title":{"rendered":"Decline in Abu Dhabi rents and house prices to continue"},"content":{"rendered":"


\nRents and house prices in Abu Dhabi continue to fall as the low price of oil dampens demand in the capital.According to property broker Cavendish Maxwell, apartment rents in Abu Dhabi’s five key investment areas all fell by between 0.8 and 2.5 per cent in the 12 weeks to the end of September.At Al Reef Downtown, one of Abu Dhabi’s most affordable investment areas, rents experienced some of the biggest declines over the quarter, with average rents down 2.5 per cent, while there were similar declines in Aldar’s prime Al Raha Beach location.Villa rents also fell rapidly during the quarter, Cavendish Maxwell reported, with average rents in Saadiyat Beach villas down by 2.7 per cent during the quarter, and in Raha Gardens and Al Reef 2.3 per cent lower.Apartment prices in the capital also fell during the period, albeit by smaller amounts. Cavendish Maxwell reported that apartment prices in Abu Dhabi’s more affordable investment locations Al Ghadeer and Al Reef Downtown fell 0.6 per cent during the period, while in Saadiyat Beach Residences, Al Raha Beach and Al Reem Island they were 0.4 per cent lower, pushing annual price falls down by between 2.7 and 4.3 per cent.”The decline in rents in the city is likely to be followed by a further decline in prices,” said Jonathan Brown, head of Cavendish Maxwell’s Abu Dhabi office. “With oil prices still low in comparison to where they were a few years ago, government expenditure will remain under pressure.”Abu Dhabi has been hit hard by the global fall in oil prices, which has prompted a swath of job cuts in the oil and gas and construction sectors in the city, as well putting government budgets under pressure. In May state-owned oil company Adnoc announced it was planning to cut 5,000 jobs by the end of the year, prompting many private companies to scale back.Speaking at the Cavendish Maxwell breakfast briefing in Abu Dhabi yesterday, Ben Crompton, managing partner at Crompton Partners Estate Agents, said he expected rents and prices in the city to continue to slump over the coming months.”Gauging demand is a bit tricky because Statistics Centre Abu Dhabi only publishes population data after a significant time lag,” he said. “After the job losses this year I would be very surprised if the population continued to increase at the same rate this year, but even if population levels remain flat and the amount of new supply added to the market increases by about 2 per cent, then that will continue to put pressure on rents and prices.”Cyril Lincoln, the head of real estate and asset finance at ADCB, said that there was a case to be made for the Central Bank to relax mortgage caps, which currently restrict the loan-to-value ratio for mortgages to 75 per cent for expatriates and 80 per cent for Emiratis for properties costing less than Dh5 million.”More regulation from the government is creating a more stable environment,” he said. “But it is a tool the authorities could use to stimulate the market.”lbarnard@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
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Rents and house prices in Abu Dhabi continue to fall as the low price of...<\/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-29505","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\/p75ss1-7FT","jetpack-related-posts":[{"id":19280,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-dubai-home-prices-and-rents-continue-falling\/","url_meta":{"origin":29505,"position":0},"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":51500,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-developers-to-stick-with-off-plan-sales-strategy-at-upcoming-cityscape\/","url_meta":{"origin":29505,"position":1},"title":"Abu Dhabi developers to stick with off-plan sales strategy at upcoming Cityscape","date":"April 10, 2017","format":false,"excerpt":"\r Developers in Abu Dhabi are still pressing ahead with plans to sell hundreds of off-plan homes at Cityscape next week despite price and rent falls in the mainstream housing market caused by redundancies and cuts to housing allowances.Aldar, Abu Dhabi's largest listed property developer, said that there has been\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51392,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/soft-economic-sentiment-a-drag-on-abu-dhabi-property-sales\/","url_meta":{"origin":29505,"position":2},"title":"Soft economic sentiment a drag on Abu Dhabi property sales","date":"April 9, 2017","format":false,"excerpt":"\r Continued weakness in the Abu Dhabi economy is forcing more property investors to become \"accidental landlords\", as they are unable to sell units that are nearing completion at a profit, according to a new report by Cluttons. These investors' willingness to offer more flexible terms to potential tenants to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":43837,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabis-residential-rents-to-continue-to-decline-in-2017\/","url_meta":{"origin":29505,"position":3},"title":"Abu Dhabi's residential rents to continue to decline in 2017","date":"February 12, 2017","format":false,"excerpt":"\r Housing rents in Abu Dhabi look set to continue plunging for the first half of 2017 amid continuing economic uncertainty, job losses and cost-cutting measures, property brokers forecast. Chestertons Mena says villa rents in Abu Dhabi fell by 10 per cent during 2016 while apartment rents fell by an\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37976,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-reinstates-5-rent-cap\/","url_meta":{"origin":29505,"position":4},"title":"Abu Dhabi reinstates 5% rent cap","date":"December 13, 2016","format":false,"excerpt":"\r Abu Dhabi has reinstated a cap on rent increases of five per cent, three years after abolishing it, the Department of Municipal Affairs and Transport (DMAT) said on Tuesday.The rule is effective from Tuesday, the DMAT said in a statement.Abu Dhabi abolished the rental cap in November 2013, a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51380,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/weak-jobs-market-continues-to-affect-demand-for-luxury-housing-in-abu-dhabi\/","url_meta":{"origin":29505,"position":5},"title":"Weak jobs market continues to affect demand for luxury housing in Abu Dhabi","date":"April 9, 2017","format":false,"excerpt":"\r Continued weakness in the Abu Dhabi economy is forcing more property investors to become \"accidental landlords\", as they are unable to sell units that are nearing completion at a profit, according to a new report by Cluttons.These investors' willingness to offer more flexible terms to potential tenants to secure\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\/29505"}],"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=29505"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/29505\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=29505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=29505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=29505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}