Business & Money | Monday 24 August, 2015 11:29 am |

Chestertons, the international property agency established in 1805 stated that the Abu Dhabi property market will continue to remain buoyant through 2015 due to its strong growth potential and rise in demand for properties.

 

“Abu Dhabi’s real estate sector continues to give signs of stabilization, with an average 4% quarterly rental growth witnessed due to lack of supply for prime apartments. In a city where rentals are always higher than in Dubai and housing is skewed in favour of high – end properties, the re-introduction of rental cap and increase in affordable housing will see Abu Dhabi go along way in affordable and investor friendly city,” said Robin Teh, Country Manager, Chestertons MENA.

 

“As housing supply continues to be inadequate, rentals remain a key pressing issue. Q2 2015 recorded highest level of inflation for the past 6 years primarily due to the increase in cost of living. As oil prices continue to be volatile, sales price remained sluggish in Q2 2015. The quarter did not witness a substantial increase in prices as prices have already peaked post the financial crisis,” added Robin.

 

The developer’s perception about the property market is set to be optimistic as new developments were launched primarily in Reem, Yas and Saadiyat Islands. This fosters confidence for the buyer into the market as more options are now available over time. On the other hand, Villa sales prices also remained stable in Q2 2015, along with the recent launch of several new projects in Saadiyat which witnessed good demand. It is expected that approximately 6,000 units will enter the market by end of 2015.

 

“The rental segment witnessed a strong growth overall, as rentals increased by 4% approximately. Lack of supply in the affordable housing segment continues despite high demand. Over the year, little respite is anticipated as supply is skewed towards high-end properties. The rumors on the rental cap are still unconfirmed, with certain areas experiencing rental hike as much as 50% since 2013,” added Robin.

 

High demand from MNC’s as well as the government entities continues to support the high rental growth for ‘Grade A’ offices. Overall, the office segment witnessed a mix of growth and decline. Under the office segment, ‘Grade A’ remains the strongest, as office supply is inadequate compared to the high demand.

 

Chestertons with its Middle Eastern headquarters in Dubai and the company’s office in Abu Dhabi offers a full range of property services, including residential and commercial sales and leasing together with professional property valuation and property management services. 

 

“On the corporate front we have aptly positioned ourselves to harness the potential that the property market in Abu Dhabi has to offer as many people and organisations choose to make it their base. In order to meet the ever growing demand for niche properties we are expanding in the capital. Merging our long standing global industry know-how and exhaustive expertise of our local staff, we look forward to strengthen our position as a leading global property consultancy firm in the market,” concluded Robin. 

 

Chesterton MENA has a very active international sales division, specializing in the sale of prime, Central London residential apartments and houses to investors from across the entire MENA region. The company has also created a new ‘International Properties’ arm that will focus on EU based properties for Middle Eastern investors.  The company will facilitate investors from the region to buy properties in Spain, Monaco, Cyprus and several other EU countries from its office in Dubai. The company’s portfolio of properties ranges from apartments to multi-million Euro grand estates in Spain encompassing Marbella, Mallorca, Ibiza and Barcelona.