Abu Dhabi rents continue slide

Apartment rental rates in Abu Dhabi dropped six per cent in the third quarter compared to the previous quarter, according to research by Asteco, the property management firm.

Overall villa rates were unchanged for the quarter, although rates for off-island villa projects such as Mohamed Bin Zayed City and Khalifa City were down an average of five per cent, the firm found.

The firm represented the apartment rental decline as signs of "stabilisation," compared to eight and nine per cent drops recorded in the previous two quarters.

"The strong rental demand we are witnessing is being driven by existing residents' desire to upgrade and secure better value for money accommodation," Asteco chief executive Elaine Jones said in a statement.

A two-bedroom apartment on the Corniche that rented for between Dh160,000 and Dh210,000 a year ago now rents for between Dh140,000 and Dh165,000, according to Asteco research.