Why Abu Dhabi rents won't fall in 2016

Abu Dhabi: The rents in the capital Abu Dhabi are not likely to drop in 2016 because fewer rental units are coming into the market, according to analysts.

There will be no new housing units added to the market in 2016, both in prime areas as well as through affordable housing initiatives, May Hassan, financial analyst at real estate services company Jones Lang LaSalle (JLL), told Gulf News.

“As a result, rents during the next year are expected to remain stable or even increase slightly, similar to what occurred during 2015. In fact, the Abu Dhabi market saw a 5 per cent increase in rents in the first quarter of this year,” Hassan added.

A new property regulation that will come into effect in January, and which was announced in June, could aggravate the undersupply.


Source: gulfnews.com

Photo Credit: Ahmed Kutty/Gulf News Archives