Off-plan sales are driving the Abu Dhabi housing market as the emirate continues to feel the pinch of reduced government spending and sluggish economic growth, according to the latest Observer: Abu Dhabi Q4 2017 report from Chestertons MENA.
In Q4 2017, off-plan sales activity remained high as developers rolled out several incentives to attract buyers, however, the secondary market witnessed a 2% decline in apartment sales prices and 1% decline in villa sales prices – GCC and Arab nationals dominated both markets.
Sales prices, on average, decreased by 2% for apartments during the fourth quarter of the year, with some markets experiencing a more pronounced decline, such as Reem Island (5%), a result of waning demand.
“Conversely, Saadiyat Island registered the highest increase in apartment sales prices for the second consecutive quarter, at 5%, fuelled in part by the inauguration of the Louvre Abu Dhabi. On average, prices increased from AED1,362 per sqft to AED1,430 per sqft in Saadiyat Island, compared to Reem Island which declined from AED1,242 per sqft to AED1,184 per sqft,” notes Chestertons.
Per Chestertons, average villa sales prices fell by 1% in Q4, with the Al Raha Beach Area falling more than 4% from AED1,348 per sqft to AED1,282 per sqft; while Khalifa City, in contrast, registered an increase of almost 6%, with prices up from AED 852 per sqft to AED 895 per sqft.