David Dudley, international director and head of the Abu Dhabi office of global real estate services firm JLL, said: “During 2016, we expect rents to remain relatively stable in some sub-sectors, and we expect to see a modest decline for other sub-sectors.”
For the residential market, he said while demand has certainly fallen, a major reduction in annual supply of completed projects has led to relatively limited vacancies in most sub-sectors of the market.
“Annual supply completions historically averaged 10,000 units per annum. However, current supply completions are at a fraction of that,” said Dudley.
Offering a different view, Asteco managing director John Steven said the Abu Dhabi market will see a slight increase in rents for some popular projects as well as some older buildings in Abu Dhabi City that didn’t increase their rates in 2015.
“In contrast to Dubai and the northern emirates, Abu Dhabi has a more limited pipeline due for completion during 2016 and as a result, vacancy rates are likely to remain low despite a potential reduction in demand,” said Steven.
“The underlying message is stability and marginal increases,” he said.
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