Abu Dhabi property prices continue to tumble
Residential property sales in Abu Dhabi fell during the last three months of 2010 and prices are down by up to 12%, according to a new real estate index for the emirate.
The Abu Dhabi Property Index, launched by real estate specialists Cluttons who have had a dedicated Middle East presence since 1976, will benchmark property values in the emirate.
It shows that in the fourth quarter of last year freehold villa values in developments such as Al Reef have seen a continuation of falling values of up to 12% from third quarter levels.
It also shows that the private freehold GCC market in areas such as Al Raha Gardens and Golf Gardens have remained relatively robust and the most popular developments in Abu Dhabi for sales are Al Raha beach and Marina Square.
The Index offers comprehensive price data for both villas and apartment sales over the past year. Such information therefore provides one of the most accurate real estate price information tools on the market.
The information and analysis provided in the index have been created by analysing 10 leading residential areas in Abu Dhabi, categorising them into high, medium and low end according to specification.
The high-end range of units referred to in the index includes prestigious areas such as Raha Beach, whilst projects such as Al Reef are included in the medium end category and Mohammed Bin Zayed City in the low-end range.
It is hoped that this resource will present and identify new opportunities across the property sector, enabling users to choose the most lucrative direction for their property investment in a simple and credible way. On a strategic level, Cluttons is committed to best practice, and hopes the Index will foster greater transparency and reflect the true state of the Abu Dhabi property market, helping investors gain clarity and direction.
‘We are delighted to announce the launch of this informative real estate tool. The initial make up of the Index comprises data collected from sales transactions and valuations over the past four years,’ said Harry Goodson Wickes, Abu Dhabi director for Cluttons.
‘An important feature of the Index is that it only considers valuations and sales achieved, and excludes new launches, that are typically priced higher. This helps it reflect the real story and act as a true barometer of the state of the market,’ he added.
In Abu Dhabi the prices will keep falling a lot due to the high original launch prices. We also bought an apartment there in Hydra Avenue. We are going to terminate the contract and write off our losses as it isnt worth putting any more money in it as you will never get it back on completion.