According to the report, while marketplace conditions have led to a decline in occupier demand and residential rents, residential sale prices have also declined.
In the residential segment, around 900 units were delivered during second quarter, bringing the total stock to approximately 250,000 units. Deliveries included Sigma Towers on Reem Island, C74, C75 and C76 buildings in Rawdhat on Airport Road and Bloom Gardens Phase 3 on Al Salam Street. A further 4,000 residential units are currently scheduled to enter the market by the end of 2017, mainly within Reem Island, Saraya and on the Corniche, the report reveals.
Living costs and market conditions have forced residents to seek cheaper units making way for affordable housing with smaller unit sizes.
“There remains an opportunity to develop further good quality affordable housing with smaller unit sizes such as The Brides by Aldar on Reem Island, which was well received at Cityscape Abu Dhabi in April 2017,” notes the report.