ABU DHABI — Abu Dhabi is set to make more homes in the second half of this year, offering mid-level buyers a wide choice of properties, Arabian Business News online said on Friday, citing a new Asteco Property report. Existing supply of residential properties will increase with the handover of 3,500 units at The Gate District, Shams Abu Dhabi, standalone tower projects, Beach Towers, Oceanscape and Mangrove Place, and affordable homes at Hydra Village, the online news said. Asteco's report in the first half of the year said Abu Dhabi's real-estate market transactions have also increased over the last few months, according to Arabian Busines News. The report highlighted increases in sales of apartments in Al Zeina and Al Raha Beach by up to 23 percent year-on-year, it said. Reef Downtown experienced similar gains with a 20 percent year-on-year gain, while Al Bandar posted 15 percent increases. "With more units coming on-stream over the next six months and well-established communities offering improved facilities, good quality finishes and attractive leasing prospects, both investors and owner-occupiers are once more eyeing Abu Dhabi for long term investment potential," it quoted John Stevens, managing director of Asteco Property Management, as saying. The report urged sellers to be realistic after market trends in recent months showed properties being sold at above market value. Asteco said that at the higher end of the market there are few properties available below AED1,000 per-square-feet. But it said prices of properties on Al Reem Island are expected to remain flat or even record some declines as some projects at The Gate District as well as independent projects have been completed. It noted that villa sale prices in Al Raha Gardens and Al Reef Villas rose by 12 percent and 14 percent, respectively, against the second quarter figures in 2102. Echoing trends in the first quarter of this year, it said prime residential properties have experienced steady increase in rental rates. Strong demands and short supply have fueled the rental price increases of up to 10 percent year-on-year, the report added. High-end properties in Al Raha Beach and Al Reem Island reported a 65-percent occupancy rate, prompting Asteco to predict rental rate increases in the mid-term. — SG
