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Abu Dhabi, 31 January 2018: Cavendish Maxwell has released its 2017 – A Year in Review Abu Dhabi Market Report providing a summary of the residential market and highlighting price movement, rent and yield statistics, and upcoming supply of residential properties. The data is provided by Property Monitor, a real estate intelligence platform. The report also includes a market outlook for 2018 from professionals working within the industry.
Prices for apartments in Saadiyat Beach Residences and for villas/townhouses in Al Raha Gardens, Saadiyat Island and Al Reef, experienced annual declines of more than 2% as of December 2017. The key drivers of price declines in 2017 include the readjustment of employee benefit packages as well as job losses. Meanwhile, residential property rent declines in 2017 were more pronounced among apartments on Al Reem Island, declining at 4.4% on average and Al Raha Garden villas, declining at 4.3% on average. With the introduction of value added tax (VAT), reduced housing allowances and removal of subsidies, tenants in Abu Dhabi are more focused on affordable options.
There are 9,200 apartments and 3,400 villas/townhouses scheduled for handover in 2018. Of the upcoming supply, over 50% of the apartments are expected to be handed over on Al Reem Island. As a result of subdued transaction activity and declining prices and rents, developers have staggered their launch and handover plans.
Sale prices and rents are derived from Property Monitor (www.propertymonitor.me), a real estate intelligence platform established by Cavendish Maxwell in 2014. Property Monitor provides real-time, market-wide transactional data and trends. Working with agencies, banks, developers and corporate investors, it provides deeper insight into real estate advisory, investment, and lending activities. The average sales price per sq ft is based on the Property Monitor Index which incorporates signed contracts, registered transactions, valuations and listings verified by Cavendish Maxwell’s market leading valuation department.
Supply projections for residential projects are based on the Property Monitor Supply Tracker which tracks supply in real time through regular tracking of construction projects, new launches and delays. This is achieved through site inspections as well as regular feedback from developers, contractors, Cavendish Maxwell’s building consultancy team and relevant government entities.
The information and analysis contained in this report has been obtained from or is based on information from a variety of sources generally regarded to be reliable and assumptions which are considered reasonable, and which were current at the time of undertaking market research. However, no representation is made, or responsibility accepted by Cavendish Maxwell Real Estate Consulting, in respect of the accuracy or currency of this information. Cavendish Maxwell Real Estate Consulting does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.
Cavendish Maxwell is a highly respected independent firm of chartered surveyors and property consultants, focusing on property services throughout the Middle East and Africa. Established in 2008, Cavendish Maxwell is now one of the region’s most in influential property consultancies, employing over 70 people from offices in Dubai, Abu Dhabi and Muscat.
As a fully qualified member firm of the Royal Institution of Chartered Surveyors (RICS), and with extensive knowledge of the region, Cavendish Maxwell has the necessary experience, expertise and insight to deliver property advice of the highest standard. The company’s reports are used for loan security, audit, insurance reinstatement, dispute resolution, risk management, debt recovery and performance analysis.
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