{"id":51380,"date":"2017-04-09T17:00:00","date_gmt":"2017-04-09T10:00:00","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=51380"},"modified":"2017-04-09T16:10:47","modified_gmt":"2017-04-09T09:10:47","slug":"weak-jobs-market-continues-to-affect-demand-for-luxury-housing-in-abu-dhabi","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/weak-jobs-market-continues-to-affect-demand-for-luxury-housing-in-abu-dhabi\/","title":{"rendered":"Weak jobs market continues to affect demand for luxury housing in Abu Dhabi"},"content":{"rendered":"


\nContinued 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 income is also placing pressure on rents in an already weak market, the firm’s Spring Abu Dhabi Property Market Outlook argues.It said that capital values in investment areas dropped by 1.9 per cent in the first quarter of this year, meaning the year-on-year decline in values was by 7.6 per cent, compared to a 6 per cent year-on-year decline recorded at the end of 2016. Cluttons said that weak economic conditions, rising inflation and high costs of living are continuing to curb demand in both residential and commercial markets, with the luxury end of the market witnessing the steepest declines. It said that for landlords who had purchased off-plan homes that are now being completed in developments at places like Reem Island, “the inability to achieve desired sale prices is prompting vendors to enter the rental market to generate cash flows”. “These ‘accidental’ landlords are competing for a limited pool of tenants and this is hampering the rental market’s ability to register any meaningful growth.”Average rents are now 15 per cent lower year-on-year. Edward Carnegy, the head of Cluttons Abu Dhabi, said: “Anecdotal evidence shows that organisations continue to trim senior-level executive positions, which are a key source of requirements for high-end homes. In other cases, companies are removing housing allowances to cope with the financial pressures, which is making it harder for potential buyers to purchase a property.”Faisal Durrani, the head of research at Cluttons, said that the decline in demand for luxury accommodation was not unique to Abu Dhabi, and that a similar trend could be identified in many international markets whose economies are influenced by oil prices.He said that more trimming of employment is likely, with even sectors that have been identified as growth prospects for economic diversification affected, such as aviation.Supply in submarkets such as Reem Island is also predicted to increase, leading to further anticipated falls in rents and prices. Cluttons is predicting average rents will end this year between 5 and 7 per cent lower than 2016, while capital values will fall by 8-10 per cent.Despite this, Mr Durrani argues that there are still opportunities for developers to create the right type of product – especially affordable homes in investment zones.”We were saying three years ago when the market was at its previous peak that there wasn’t enough affordable space, and demand for affordable homes is now stronger than it has ever been.”According to Cavendish Maxwell, rents for apartments and villas in investment zones continued to decline in the first quarter of 2017 and drops were most pronounced at Al Raha Beach and Al Raha Gardens. In the first quarter of 2017, rents for four-bed villas at Al Raha Gardens dropped by 3.3 per cent. Cavendish’s senior consultant Manika Dhama said: “Larger units are facing occupancy pressure from weakened demand as job insecurity continues in the emirate, especially for senior-level executives.”The firm said that 1,200 new homes were completed in investment zones in the first quarter of this year, and a further 7,800 units are scheduled for completion by the end of the year.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Weak jobs market continues to affect demand for luxury housing in Abu Dhabi<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Continued weakness in the Abu Dhabi economy is forcing more property investors to become “accidental...<\/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-51380","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-dmI","jetpack-related-posts":[{"id":51392,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/soft-economic-sentiment-a-drag-on-abu-dhabi-property-sales\/","url_meta":{"origin":51380,"position":0},"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":53639,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/weak-demand-and-increasing-supply-hurt-prospects-for-abu-dhabi-property\/","url_meta":{"origin":51380,"position":1},"title":"Weak demand and increasing supply hurt prospects for Abu Dhabi property","date":"May 3, 2017","format":false,"excerpt":"\r Property prices are expected to remain in decline in Abu Dhabi throughout 2017, as the weak economic outlook and more project completions impact on all sectors of the market, according to CBRE.The property consultancy's Q1 Abu Dhabi Market View report states that residential rents have dropped by 8 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51975,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-residential-sale-prices-drop-in-the-first-quarter\/","url_meta":{"origin":51380,"position":2},"title":"Abu Dhabi residential sale prices drop in the first quarter","date":"April 15, 2017","format":false,"excerpt":"\r Abu Dhabi residential sale prices declined by an average of 5 per cent year-on-year in the first quarter, with expectations of further drops this year because of lower demand and new supply, according to a report from dubizzle and broker JLL.\"A decline both in the rental and sale segment\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9526,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-property-market-outlook-new-supply-to-remain-suppressed\/","url_meta":{"origin":51380,"position":3},"title":"Abu Dhabi property market outlook: New supply to remain suppressed","date":"March 31, 2016","format":false,"excerpt":"\r \r While experts in Dubai have been busy trying to predict exactly when a market that has been in decline for approximately 18 months might show signs of bottoming out, in Abu Dhabi many believe house prices may now have peaked.CBRE's analysis of the market showed that apartment prices\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37112,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/high-end-villas-lead-fall-in-rents-across-abu-dhabi-says-cluttons\/","url_meta":{"origin":51380,"position":4},"title":"High-end villas lead fall in rents across Abu Dhabi, says Cluttons","date":"December 5, 2016","format":false,"excerpt":"\r Rents have fallen by 9.4 per cent across Abu Dhabi's residential investment areas since the start of the year according to new research. The decline outpaced a fall of about 5.2 per cent in the value of homes over the same period, according to a report from Cluttons. It\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":51380,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/51380"}],"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=51380"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/51380\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=51380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=51380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=51380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}