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Uncertainty in Job hits Hard Abu Dhabi’s Residential Market

Loss of jobs has led to high vacancy rates which continue to affect Abu Dhabi’s residential platform and rental space on top of it. Since last one year, apartment rates are down by a fair amount of 10% involving 3% in the second quarter, as per the latest update from the market.

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Uncertainty in Job hits Hard Abu Dhabi’s Residential Market

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  1. Uncertainty In Job Hits Hard Abu Dhabi’s Residential Market Loss of jobs has led to high vacancy rates which continue to affect Abu Dhabi’s residential platform and rental space on top of it. Since last one year, apartment rates are down by a fair amount of 10% involving 3% in the second quarter, as per the latest update from the market.

  2. High end homes have predominance within the already existing residential base, that’s why the changes are more reflected in this category than in mid to lower end. Deliveries are expected to be made till 2020. Abu Dhabi’s realty market is witnessing a blend of high living costs, cut down in housing allowances and less certainty in the job market. Some residents are downsizing to smaller and cheaper units, thus the vacancy rates will therefore continue to place downward pressure on residential rents. Sharjah Apartment Rents Continues To Be Under Pressure Picture Courtesy: www.worldpropertyjournal.com Developers that do not have enough financial resources are required to speed up their project works. Those who are ongoing and also which are going to be launched. Investors won’t rush to acquire the off plan units except for the demand in Bridges in

  3. Abu Dhabi. The demand for premium residential real estate took a 3% decline by the 6th month and 11% over the last 12 months. During the second quarter, around 900 units were handed over which brought the emirates total housing stock to 2, 50,000 units. Relevant handovers included Sigma towers on Al Reem Island and Bloom Gardens Phase 3 on Al Salam Street. Rents In Dubai Under Pressure Picture Courtesy: www.sbm.edu.pk

  4. In a perfect situation, 4000 new homes are delivered through this year. But the current residential spaces believe that a market must see a considerable amount of proportion of the intended supply getting delayed at the last and final step of approval or handover. For the landlords, it lowers the risk of lease when rents are under stress and for the developers, it means less chance of market being awash in unsold inventory. In the second quarter, there were no new office properties being ready. But new stocks are being ready for completion with 170,000 square meters consisting of headquarters of ADIB on airport road and omega towers on Reem Island. Abu Dhabi’s banks have cut over 900 jobs since last one year. The firms are hiring fewer employees with online recruitment process declining 47% each year. Additional office requirements will continue to be limited during this whole year because of reduced government spending. However the supply remains under control. Get Connected on Social Media: Facebook: https://www.facebook.com/AllegoriaProp Twitter: https://twitter.com/AllegoriaProp Instagram: https://www.instagram.com/allegoriaproperties/

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