Abu Dhabi property sales remain subdued

Country:  Abu Dhabi

27 November 2009

The volume of Abu Dhabi properties sold is expected to remain low throughout the rest of 2009, but should improve somewhat next year, according to research conducted by CB Richard Ellis (CBRE).

CBRE’s views compliment a recent HomesOverseas.co.uk report, which named Abu Dhabi as the top place to invest in property in the Gulf region in 2010.

The CBRE report shows that demand for property in Abu Dhabi weakened across all market sectors with sales prices generally falling, particularly in the off-plan sector. This was in sharp contrast to the buoyant demand and rapid price growth witnessed in the Abu Dhabi property market during the first half of last year.

Matthew Green, a director at CBRE Middle East, commented: “Low levels of investment reflected the unmatched expectations of both existing investors and potential buyers with owners of properties reluctant to succumb to lower values in anticipation of a positive cyclical spin, while buyers are wary of a continued downturn in asset values.”

Abu Dhabi property rental values also dropped with landlords having to take a more flexible approach in order to attract tenants.

See Also:   Abu Dhabi, CB Richard Ellis, Marc Da-Silva