The latest report by CB Richard Ellis finds that rents for residential properties in Abu Dhabi had declined in the final quarter of 2009 but at a slower rate than at any point during the previous year.
The report estimated that a further lowering of rents was likely in the coming quarters as more new residential units entered the market. As a result, tenants in Abu Dhabi would be able to negotiate better with landlords, at least in the short term.
However, concerns remain over job cuts in Abu Dhabi, as a consequence of which tenants were now becoming more cautious with their spending. Landlords and agents are expected to be more open to negotiating lower rents with tenants in this situation.
In the commercial sector, the impact of the global economic crisis is still evident as leasing and sales transactions remain passive. Rents have continued to fall since 3rd quarter 2009 and office vacancy rates are also expected to rise this year due to a combination of new units but weak demand.
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