Housing rents slide in Abu Dhabi, but are up slightly in Dubai

Rentals for apartments in Dubai rose marginally in April, while Abu Dhabi registered a slight decline, reveals the index by Reidin.com.

The residential property prices in Dubai rental market increased by 0.05 per cent month-on-month (m-o-m), but have declined 4.2 per cent year-on-year (y-o-y).

Apartment rental prices rose 0.14 per cent m-o-m, but decreased 3.9 per cent y-o-y. Villa rental declined 0.46 per cent m-o-m, taking the annual decline to 6.3 per cent.

On the price front, the sales price index decreased by 0.53 per cent with a y-o-y decline of 7.5 per cent.

Apartment sales prices fell 0.75 per cent m-o-m, declining 7.3 per cent y-o-y. Villa prices rose 0.40 per cent m-o-m, but decreased 8.2 per cent y-o-y.

JLL, a global consultancy, expects between 10,000 and 12,000 new units to be completed this year, while CBRE, another international consultancy, estimates close to 15,000 new residential units to be completed. Both of them have predicted a softening in the rental and sale market.

# Abu Dhabi property

In Abu Dhabi, rents fell by 0.12 per cent with the annual decline reaching 0.4 per cent y-o-y, Reidin.com said.

Apartment lease rate fell 0.13 per cent m-o-m, falling 1.2 per cent in the last 12 months. Similarly, villa rents were down 0.04 per cent m-o-m, but rose 1.0 per cent y-o-y.

Overall, property prices declined by 0.71 per cent as prices were up 1.3 per cent y-o-y.

Apartment sales prices went down 0.58 per cent m-o-m, falling 0.8 per cent y-o-y. Villa prices dropped 1.13 per cent m-o-m, but were still up at 3.0 per cent y-o-y.

JLL estimates nearly 4,000 units to enter the market by the end of 2016, primarily in Danet Abu Dhabi, Reem Island and Saadiyat Island.

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