Thursday, October 11, 2007

'Demand could surpass supply during the next decade in Abu Dhabi' say reports

According to a report by The National Investor, the demand for housing in Abu Dhabi, is likely to surpass supply for the next decade, spiraling rent rates.

"We expect a situation of oversupply to threaten the value of local property market," reports the Investment Bank.

The Bank advised that investors who are interested in getting the best out of Abu Dhabi property market, need to stay away from single, direct equity investments, which will bring significant risk and volatility.

About 140,000 units are expected to be supplied in the market by 2009 and 2010, in comparison to just 10,000 during 2008 and 2009. Also, the demand during these three years, could average to about 18,000 units per year.

"The next two years are likely to be slow in terms of residential supply, and hence rents would continue to remain stable," the Bank said.

Companies such as Sorouh Real Estate, and Aldar Properties, are developing about $121 billion worth of properties in Abu Dhabi, reported the Bank.

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