Today Landmark Advisory released its latest quarterly report, which focuses on the impact of upcoming property deliveries in Abu Dhabi and Dubai. The report highlights the effects of 15,000 new units expected in the capital in 2010, which will have an impact on both the Abu Dhabi and Dubai markets.
Ms. Jesse Downs, Director of Research & Advisory Services, Landmark Advisory, explains “In Abu Dhabi, much of the new supply expected for delivery this year will rejuvenate a market that has a low average standard of quality for existing housing supply. About 5,000 of these residential units will be delivered in the Investments Zones, like Marina Square, and we expect most of the hand-overs to be concentrated in Q3 2010, which will result in a few key trends.”
According to the report, the new supply will push down sale prices and rents in the capital. In terms of the sales market, actual price declines experienced within developments are linked to the payment plan structure. “In Marina Square, for example, payment plans are back-loaded with up to 70 percent due near completion, which is causing prices to approach the AED 1,000 per square foot mark. While we expect some marginal price decline as we approach handover of developments, these recent price declines are already closing the gap between seller and buyer expectations, which will continue to attract investment, and result in more transactions.” continued Ms. Downs.
