ABU DHABI: The prime residential rent has recorded a 4 percent growth in the fourth quarter of this year. The capital rose 17 percent in 2013 and a further 11 percent last year.
While we expect there to be a reduction in government spending this year due to the recent decline in oil prices, we expect employment creation and residential demand growth to be sustained from projects commenced while the oil price was high.
“Given a continual shortage of high quality housing, we expect rental growth to continue, but at single-digit growth rates, rather than the double-digit rates we saw in 2013 and 2014.”
The report said that prime residential sale prices remained stable in Q4, with average annual growth of 25 per cent for both 2013 and 2014.
Although demand has softened, annual supply has also significantly reduced and prices are expected to remain stable in 2015.
The stabilization of sales prices signifies that some of the excessive heat has now been removed from the market.
However anticipate a significant decline in prime residential prices due to the relative shortage of availability of quality product.
