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Receding Demand Continues To Soften Abu Dhabi Real Estate Market, Says Cluttons |
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The current 'wait and see' attitude that has been adopted by potential buyers in Abu Dhabi is a direct result of wider global economic trends, and economic uncertainty caused by the recent US presidential election, according to international real estate consultancy, Cluttons. According to findings in the Cluttons Abu Dhabi Property Market Snapshot for Winter 16/17, the Abu Dhabi real estate market has experienced further softening in both the residential and office markets. Faisal Durrani, Head of research for Cluttons said, 'We have seen a notable acceleration in the residential market correction as a result of increasing global economic uncertainty and the protracted oil and gas sector's decline, building during Q3 and being further exacerbated as we wait to understand the full impact of Mr. Trump's election as President of the United States of America. This, combined with continued market softening across residential and office markets has led to nervousness amongst investors, with many reluctant to commit to purchases until they see signs of stabilisation. As a result, we have left our forecasts unchanged with a 10% fall in villa values this year likely to be followed by a decline of around 7% in 2017. Apartments will likely be less severely impacted with a decrease of 4% this year and a further 2% to 3% fall in 2017. The villa rental market will continue to bear the brunt of the widespread slowdown in the creation of senior level jobs, with a 20% drop this year likely to be followed by a 7% to 8% drop next year." |
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