After making a jump of 4.3 percent during the second quarter of 2021, rent for properties in Abu Dhabi has registered a depreciation of 3.4 percent during the third quarter of 2021 due to new supply, according to the new data released by real estate consultancy ValuStrat.
Till now, the latest drop is the biggest this year as property rents previously registered a jump of 4.3 percent in the second quarter and 1.8 percent in the third quarter of 2020. Going by the latest adjustments, rents in and around Abu Dhabi has returned to similar levels recorded in 2020.
Prior to this, residential handovers in Abu Dhabi were earlier forecast to hit their highest level in the last five years. Going by the data provided by real estate consultancy CORE, the emirate could see a huge spike in supply with more than 7,000 units expected to be completed.
During the second quarter of 2021, more than 2,079 apartments and villas were delivered in Abu Dhabi, which resulted in increased rent which was primarily supported by an increased interest for well-developed villa communities on Yas Island, Saadiyat Island and Raha Beach.
Even though Abu Dhabi’s real estate market is slightly imbalanced right now, Dubai’s property market is witnessing a large influx of new investors who are looking to benefit from high return on investment (ROI) and rising rents. With the Covid-19 pandemic restrictions being eased, buyers and tenants alike are looking forward to taking advantage of low prices and mortgage interest rates.