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Sales volume in Abu Dhabi real estate market to pick up in H2

Abu Dhabi real estate
Developers are expected to offer lucrative incentives to potential buyers

Sales volume in the Abu Dhabi real estate market is expected to pick up during the second half of the year, according to global real estate services firm Chestertons.

In a report, Chestertons revealed that sales volume are expected to pick up as developers in the Abu Dhabi real estate market will provide lucrative incentives to potential buyers.

Chris Hobden, Head of Strategic Consultancy, Chestertons MENA told the media, “While we expect Abu Dhabi to see falls in sales prices over the second half of 2020, generous developer incentives, such as extended post-handover payment plans, initial service charge waivers, and discounted prices should serve to support transaction volumes.”

“Further initiatives, by both UAE and Abu Dhabi authorities, to support an economic recovery over 2021 bode well for the capital’s real estate market medium term,” he added.

Reportedly, the Abu Dhabi Department of Municipalities and Transport (DMT) also exempted individuals and companies from 34 real estate registration fees until the end of this year. This will also help to increase sales volumes in Abu Dhabi.

The exemptions include a 2 percent sale and purchase fee and a 2 percent off-plan sale fee. DMT is also exemption fees such as land exchange fees, mortgage registration, mortgage transfer, mortgage amendment and mortgage redemption.

As a result of the coronavirus pandemic, sales prices dropped moderately during the second quarter in Abu Dhabi.

“The most significant ongoing threat to the rental sector comes from a fall in demand driven by rising unemployment and declining income levels for private sector workers. The second quarter witnessed a rise in unemployment, especially across travel-related sectors, and a further fall in Abu Dhabi’s expatriate population presents a clear risk moving forward,” Hobden pointed out.

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