Abu Dhabi – Mubasher: Abu Dhabi’s real estate market saw rent and sales prices of apartments and villas collectively fall in the first quarter of 2017, as economic uncertainty continues, the job market slugs, and the oil and gas sector shrinks, according to a report by Chestertons.

Average apartment sales prices in Abu Dhabi fell by 1% in Q1 2017 while villa prices dropped by 9%, according to a statement on Wednesday.

Apartment rents declined by an average of 3% in Q1 compared to the previous quarter, as villas also witnessed softening across the board by 3%.

“Sales prices are expected to further decline due to redundancies attributed to the shrinkage of the oil and gas sector. We believe the trend of downsizing or moving to more affordable areas will continue until 2018, when an expected increase in government spending could improve market sentiment,” Robin Teh, UAE country manager/director valuations and advisory in the UAE at Chestertons MENA, said.

Sales figures have been gradually declining ever since Q4-14, underscoring the quiet sales market in Abu Dhabi, head of advisory and research at Chestertons MENA Ivana Gazivoda Vucinic stated.

“An additional 4,000 apartments and villas by the end of 2017 will add further pressure to the much-maligned rental market in Abu Dhabi,” Gazivoda Vucinic concluded, indicating that new supply will further hinder the market.