Abu Dhabi's residential sales set for further declines, says Core Savills

Abu Dhabi’s residential sales are forecast to soften further over the next six to 12 months but at a slower pace than before as supply continues to grow, according to a report from consultancy Core Savills.

Sales prices could reach a bottom of Dh1150-1250 per square foot and rental prices of Dh70-75 per square foot over the forecast period, said Andrew Ausama, Associate Director at Core Savills.

“Developers/landlords may resist further drops in pricing as these reductions undervalue their portfolio as lower rental yields affect or may breach bank covenants which may require vendors to increase capital security or reduce debt in keeping with banking requirements,” said the report.

Lower household income, job cuts in the private and public sector and rising inflation have contributed to weak demand for residential property sales, which have dropped between 4 and 16 per cent within the last two quarters, falling faster than the yearly forecast of 15 per cent for the whole of 2017, Core Savills said.

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Where Abu Dhabi villa rents have risen and fallen, Q2 2017

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“Resistance for further drops may result in developers withholding stock in a healthy adjustment mechanism, already witnessed in Dubai in the past 5 years. This would, in turn, cause a prolonged period of lower volumes and flattened sales prices. We expect this plateau to start by end of 2017 and last for a period of 12-18 months,” Core Savills said in the report

The consultany's findings are in line with other property experts.

Abu Dhabi rents are set to drop further next year after declining 11 per cent year-on-year in the second quarter, with upscale areas under performing affordable parts of the emirate, broker CBRE Middle East said earlier this month.

Average rentals for upscale properties dipped 12 per cent, while more affordable units decreased between 6 and 10 per cent, CBRE said.

Employment uncertainty, the rising cost of living and the new supply of property are depressing rents, which have dropped 3 per cent quarter-on-quarter.

Sales price fell 4 per cent in the second quarter and are set for further declines with the delivery of new units over the next 12 months and as investors wait for prices to soften further.

How to wear a kandura

Dos

Wear the right fabric for the right season and occasion
Always ask for the dress code if you don’t know
Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts

Wear hamdania for work, always wear a ghutra and agal
Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying

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The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

ESSENTIALS

The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.