Oversupply pushes property prices down in Abu Dhabi

Real estate sales and prices are suffering due to an oversupply of residential stock in Abu Dhabi according to a recently published report. Figures supplied by Asteco real estate specialists suggest that residential sales prices have fallen by around 4 per cent during the second quarter of 2012 and the rental markets is experiencing great falls in rental rates – up to 15 per cent in areas such as Marina Square, Mussafah and Sas Al Nakhl. Unlike Dubai where residential property rents and sale prices are on the increase a glut of new apartments and villas in Abu Dhabi has helped to lower market prices. During the first six months of 2012 a total of 1,675 villas and more than 7,350 apartments joined the real estate listings and during the next six months another 4,500 villas and 7,000 apartments are due to join the market which will no doubt continue to dent property prices and rental charges for the remainder of the year.