Abu Dhabi and Dubai Properties Looking Towards a Stable Year

Monday, April 20, 2015

Abu Dhabi and Dubai Properties Looking Towards a Stable Year

 

Abu Dhabi property rates may rise slightly during the course of 2015 however not as acutely as the increases experienced last year. The general consensus across the market is that potential investors are keenly focused on the Abu Dhabi properties market and interest buoyant in anticipation of upcoming residential projects soon to be completed and available to buyers.

 

As for off plan residential units, the Abu Dhabi market can expect to receive additional units from leading contractors and from private developers, due to be released at various stages of this year.

 

Whether ready units or off plan units, Abu Dhabi does not have a rent cap in place so an oversupply of new properties released into the market in high numbers may affect market stability for Abu Dhabi properties and force rental rates up. Looking back about 8 years the state of the Abu Dhabi properties market saw many tenants choosing to live in Dubai and commuting to Abu Dhabi daily.

 

In terms of the Abu Dhabi properties commercial market, the opening of the Yas Mall bodes positively for improved market growth within the area of retail rents across the Emirate, though where there are multiple project launches there are more property listings and there is concern of an oversupply looking ahead. The Abu Dhabi properties commercial market is expecting a new set of rules governing the Financial Free Zone proposed for Al Maryah Island.

 

The Dubai properties market is looking towards a stable year within both the residential sales and the residential leasing sectors of the market, varying slightly from community to community. This is an exciting year for the Dubai properties market with the pending release of 20,000 residential units to arrive into the market. However, as with all property markets the aim is to achieve a balanced service offering with healthy competitive rates and in the case of the Dubai properties market, some communities may experience an inflation in rates while others show a deflation, depending on where the new units are released and how they are assimilated into the Dubai properties market.  

 

One area of the Dubai properties residential market expected to maintain healthy rental rates and rental activity is the low to mid sector where there is still higher demand without the supply. As the run up to 2020 grows its momentum the housing demand for the services sector grows in tandem and the majority of residents working in these sectors rely on the low to mid property sector for their housing needs. 

 

Dubai properties commercial sector can expect a stable year though focus from developers must continue to prioritise quality construction and maintenance efficient properties in order to maintain competitive rates across the city.



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