Abu dhabi rents drop 8 per cent in q1

The apartments and villa rents in Abu Dhabi fell 8 per cent in the first quarter, signaling likely further decline this year as new supply hits the market, said property management firm Asteco in its latest report.

The rents in UAE capital continued their downward trajectory in the first three months of 2011, with declining trends continuing from last quarter, Asteco said in the latest Q1 2011 report.

“On the main island, turnover is slow within the lower quality buildings, where tenants are taking advantage of ‘capped’ low rental agreements. Among those that have become available, rents have reduced significantly and this is a trend we expect to become more pronounced,” remarked Elaine Jones, CEO of Asteco.

The report finds villa rents have fallen 8 per cent over the quarter, declining further from the 5 per cent drop in the last quarter, with falls especially pronounced within lower quality villas, Jones added.

Source: TradeArabia