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Abu Dhabi freehold properties falling back to original prices

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Abu Dhabi freehold properties falling back to original prices - real estate - Property - Price - Abu Dhabi - UAE


Landmark Advisory today launched its new Abu Dhabi Real Estate Report, which examines the price correction now unfolding in the freehold/leasehold market.



According to Landmark Advisory, average prices for Abu Dhabi's ambitious master developments have dropped 15%-25% since peaking in Q308 and are approaching original prices in the secondary market. For properties being delivered later than 2011, average prices are likely to fall up to 10% below original prices by Q209.

'Freehold and leasehold prices spiked after CityScape Abu Dhabi in May 2008, and despite solid demand fundamentals, the market could not sustain such high prices in the short to medium term. Now we're in a state of transactional gridlock in a market wanting transparency. Going forward developers and investors need the latest research analysis based on solid supply and demand fundamental to make informed decisions.'

said Jesse Downs, Head of Research at Landmark Advisory.

'Investors and speculators saw Abu Dhabi as the 'next big thing' after Dubai, but by the financial crisis had already hit the UAE. Launch prices were benchmarked against Dubai's already inflated property values, so there was little room for appreciation even before liquidity dried up,' added Downs.

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