Signs of increasing activity in Abu Dhabi market, according to Landmark Advisory

The guide is designed to be a reference tool for prospective buyers looking to invest in property in the capital and follows the regular release of their Dubai price map.

Ms. Jesse Downs, Director of Research, Landmark Advisory, says that there are now signs of increasing activity in the Abu Dhabi market:

"There has been a noticeable increase in terms of sales as more developments are nearing completion. We have witnessed more end-users emerging as buyers as they become more confident in investing in the market again and we expect this interest to increase as more units become available."

Registered sales and an increasing amount of queries have been witnessed in areas such as the Arabian District in Al Reef Villas and towers in Al Reem Island, including Marina Square and Sun and Sky Tower, due to their completion coming at the beginning of 2010. Listing prices for these areas remained stable during April and only witnessed marginal declines; an indication of emerging price floors on these developments.

While the buyer profile in Abu Dhabi clearly points to the end-user, profitable investment opportunities are still evident. Al Reef villas currently present excellent potential market yields, but Landmark Advisory believes that in the long-term, Marina Square and Sun and Sky Tower are likely to be better investments for the area. This is due to their proximity to Abu Dhabi City centre, and an undersupply situation in the apartment segment for at least the next three years.

Landmark Advisory notes that the first phases of some key developments are set to be completed within the next six to nine months.

"This will create additional stock in an under-supplied market which will provide relief and additional options to Abu Dhabi residents," explained Downs. "The delivery of these units will be the first of the recent freehold era in Abu Dhabi and we predict that the handover will boost the market and renew interest from end-users and investors following what we have already seen in regards to sales increasing."

As indicated by Landmark Advisory's price map, Abu Dhabi Residential market prices are still showing signs of readjustment. While average prices for apartments have declined 5%-10% since the end of Q109 (a total decline of 30% since Q308), villa prices have, however, remained stable as previously severe price declines (up to 45%), since Q308 begin to stabilise.