Abu Dhabi rents are likely to fall further in the coming months as another wave of new housing comes on to the market.
Average rents in the capital fell by 6 per cent in the three months
to September and by 16 per cent compared with the same period a year
ago, according to the estate agency CBRE.
CBRE estimates rents are
63 per cent down on the market peak three years ago. And it predicts
they will fall even further over the coming months as new schemes, such
as World Trade Centre Residences at Central Market, Nation Towers on the
Corniche and Landmark Tower are completed.
market is becoming increasingly fragmented, says CBRE, with some
tenants negotiating their rents down by between 3 and 9 per cent during
the third quarter, while other rents have remained static.
this point in the development cycle we see no immediate end to this
trend with better quality inventory entering the market, adding pressure
to ageing and/or inferior units,” said Matthew Green, the head of
research and consultancy for CBRE in the Middle East.