Abu Dhabi property prices continue to grow

Prices for prime residential properties in Abu Dhabi’s key investment areas continued to rise during the second quarter of 2013, new figures show.

The Guggenheim Abu Dhabi

The Guggenheim Abu Dhabi

Until the first quarter of 2013, property prices in the emirate had been falling for much of the past couple of years, but an 8 per cent increase in the first three months of this year has been followed up by a 5 per cent increase in the second quarter, according to the latest Jones Lang LaSalle (JLL) property report.

“The first half of 2013 has been encouraging for the recovery of Abu Dhabi’s real estate markets,” said David Dudley, regional director and Head of Abu Dhabi office at Jones Lang LaSalle. “Prime office and residential rents have stabilised. Retail and hospitality sectors saw improved performance, and prime residential prices continued to rise during Q2 2013.”

Dubai property market continues to recover >>

The report showed that prime residential rents remained stable during the second quarter, following 8 per cent growth during the first quarter. “This can partly be attributed to the government regulations to reduce the level of commuting from Dubai, together with government economic development initiatives leading to further job growth,” the JLL report noted.

“In addition, as new residential districts within master-planned areas obtain better amenities and achieve critical mass, this is leading to rental premiums for higher quality product. Rents in secondary quality residential stock have continued to fall,” the report added.