According to a report of JLL’s Abu Dhabi Real Estate Market Overview, demand growth in the capital is weakening, with rentals and sales flat during the period. Abu Dhabi property market reaches ‘tipping point’ because of an increase in the cost of living and a reduction in demand.
“We are currently at a ‘tipping point’, with market stability very much dependent on the government continuing to invest in major new infrastructure and economic development projects,” said David Dudley, the head of JLL’s Abu Dhabi office. He also added “The extent to which conditions remain stable over the next year or so very much depends on the government’s spending plans,”.
He said that employment creation has continued as a result of projects that were started before the recent decline in oil prices, such as the new US$3 billion Midfield Terminal Complex, and Etihad Airways’ ongoing expansion plans.
There have been no significant new developments delivered to the market during the first half of the year and only 6,000 units are expected by end of the year at Saraya, Hydra Avenue and The Wave on Reem Island, C59 in Rawdhat and Amwaj 2 at Al Raha Beach
This would bring the total number of properties in Abu Dhabi’s investment areas monitored by JLL to 250,000.
On a separate report from MPM Properties the property branch of Abu Dhabi Islamic Bank showed that about 6,750 new residential units were added to Dubai’s property market over the past three months, bringing the total stock to 479,000 properties.