Property prices in Abu Dhabi will remain flat despite mortgage rate cuts and completion of new units in the emirate.
Local property consultant Landmark Advisory says prices will not increase during the second quarter of this year and it does not expect the number of property transactions in the capital to increase either.
“While these changes are expected to stimulate demand, the improvement will be moderate in absolute terms. We do not expect the volume of transactions to increase significantly in the near future, even for close-to completion developments,” says Jesse Downs, director of research and advisory services, Landmark Advisory.
In February last month, Landmark Advisory said it expects the real estate market in Abu Dhabi to perform badly in 2010. Landmark said it expects sale prices to be stable during this year, although it predicts that rents will continue to fall as a result of a higher level of supply (MEED 9:2:10).