Abu Dhabi apartment rents fall marginally in year to Q1 2023

Abu Dhabi apartment rents fall marginally in year to Q1 2023

Abu Dhabi’s average apartment rents dropped by 0.7% in the year to March 2023 while villa prices grew by 1.1%.

CBRE’s UAE Real Estate Market Review for Q1 2023 showed that sales prices for both apartments and villas increased during the year, by 1.4% for apartments and 1.6% for villas.

The number of off plan sales in the emirate increased by 131.5%, while secondary market sales for the year fell by 0.2%.

While Dubai, with average apartment prices up by 12.4% for the year to the first quarter and villa prices up by 14.8%, has been the focus of real estate headlines in recent months, Taimur Khan, head of research, MENA, at CBRE, said the UAE real estate sector as a whole had maintained strong levels of demand during the first quarter of 2023.

“Whilst we do expect a moderation in growth rates going forward, we anticipate that the market will continue its performance trajectory over the course of the year,” Khan said.

“Where we are likely to see a slowdown, it will be driven by a shortage of supply, primarily in the industrial, office and prime retail sectors.”

In Abu Dhabi, only 272 residential units were delivered during the year, according to the CBRE report,