EGX ends week mostly higher on Oct. 16    Egypt, Qatar sign MoU to boost cooperation in healthcare, food safety    Egypt, UK, Palestine explore financing options for Gaza reconstruction ahead of Cairo conference    Egyptian Amateur Open golf tournament relaunches after 15-year hiatus    Egypt's Kouchouk: IMF's combined reviews will give clearer picture of fiscal performance    Egypt will never relinquish historical Nile water rights, PM says    Oil prices rise on Thursday    Fragile Gaza ceasefire tested as humanitarian crisis deepens    Egypt explores cooperation with Chinese firms to advance robotic surgery    CBE, China's National Financial Regulatory sign MoU to strengthen joint cooperation    Avrio Gold to launch new jewellery, bullion factory in early 2026    AUC makes history as 1st global host of IMMAA 2025    Al Ismaelia launches award-winning 'TamaraHaus' in Downtown Cairo revival    Al-Sisi, Burhan discuss efforts to end Sudan war, address Nile Dam dispute in Cairo talks    Egypt's Sisi, Sudan's Al-Burhan renew opposition to Ethiopia's unilateral Blue Nile moves    Egypt's Cabinet hails Sharm El-Sheikh peace summit as turning point for Middle East peace    Gaza's fragile ceasefire tested as aid, reconstruction struggle to gain ground    Egypt's human rights committee reviews national strategy, UNHRC membership bid    Al-Sisi, world leaders meet in Sharm El-Sheikh to coordinate Gaza ceasefire implementation    Egypt's Sisi warns against unilateral Nile actions, calls for global water cooperation    Egypt unearths one of largest New Kingdom Fortresses in North Sinai    Egypt unearths New Kingdom military fortress on Horus's Way in Sinai    Egypt Writes Calm Anew: How Cairo Engineered the Ceasefire in Gaza    Egypt's acting environment minister heads to Abu Dhabi for IUCN Global Nature Summit    Egyptian Open Amateur Golf Championship 2025 to see record participation    Cairo's Al-Fustat Hills Park nears completion as Middle East's largest green hub – PM    El-Sisi boosts teachers' pay, pushes for AI, digital learning overhaul in Egypt's schools    Egypt's Sisi congratulates Khaled El-Enany on landslide UNESCO director-general election win    Syria releases preliminary results of first post-Assad parliament vote    Karnak's hidden origins: Study reveals Egypt's great temple rose from ancient Nile island    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Egypt reviews Nile water inflows as minister warns of impact of encroachments on Rosetta Branch    Egypt aims to reclaim global golf standing with new major tournaments: Omar Hisham    Egypt to host men's, juniors' and ladies' open golf championships in October    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Oversupply Blesses Abu Dhabi's Renters
Published in Amwal Al Ghad on 24 - 04 - 2012

With residential rents in Abu Dhabi forecast to continue to fall this year as new supply hits the market, tenants are enjoying a wider range of choice and better value for money.
Average residential rents in Abu Dhabi fell 18% in the first quarter year-on-year following the handover of a large volume of new stock, according to a new report by CBRE. "With a significant inflow of new properties occurring during a very short period, occupiers continue to enjoy a growing spectrum of choice across various locations and budgets," the report said.
The consultancy said rental fluctuations are often found to be even more acute for strata developments, with the presence of multiple landlords in the same building creating fierce competition. "Owners are also pushed to lease properties at lower rates in order to prevent the long void periods occurring, subsequently benefitting occupiers across the market," it added.
Jones Lang LaSalle also predicts further declines in rents in most locations across the emirate. It estimates up to 23,900 units are scheduled for completion in Abu Dhabi this year, but many of these projects are likely to be further delayed.
JLL also said the rent premium that Abu Dhabi had maintained over Dubai had decreased and will eventually reduce the number of commuters from Dubai.
Real estate consultancy Cluttons agrees that the drop in rents will prompt more people to move to the emirate from Dubai. "Back in 2009-2010, if you found a job in Abu Dhabi, realistically because of the high rental levels, you were going to live in Dubai in the Marina and drive down every day. So I think there is an opportunity for the new buildings in Abu Dhabi to lease up - it's just about being reasonable in the rental levels," said Steve Morgan, Head of Cluttons UAE.
Morgan said that although developers in Abu Dhabi face challenges, the residential market in the capital also has certain advantages over Dubai in the long term, as AMEinfo stated.
"The level of oversupply in Abu Dhabi isn't quite as severe as the level in Dubai, and the projects in Abu Dhabi are possibly more realistic in terms of location than some of the locations that you have in Dubai," he told AMEInfo.com. "So what you have in Dubai is certain markets coming back and other markets trailing behind, but I think generally the projects in Abu Dhabi are good quality and the numbers aren't as high as Dubai. So when the market does start to come back, it's more likely to be more sustainable across the various levels of the marketplace."
Morgan also believes that the completion of the proposed merger between Sorouh and Aldar would be another positive boost for the Abu Dhabi market. "Any move to reduce cost and try and get certain developments back online - which I think is ultimately behind the merger - is a sensible move. The world is a different place from what it was in the earlier 2000s when these quasi government developments were funded. So it's certainly a sensible move in the right direction," he said.
Gurjit Singh, COO of Sorouh, said the oversupply situation in Abu Dhabi is a typical characteristic of the supply cycle in any property development cycle. "At this point in time there are a lot of developments that are being completed and handed over to various types of owners. But the unique thing is that this time around a lot of the properties that are being completed are in investment zones and therefore there is a good cross-section of purchasers and developers are coming up with various types of structures and arrangements to lease these properties. And a lot of these new developments are offering good value for money," he said.


Clic here to read the story from its source.