UAE - Mubasher: The sales and rent prices in Abu Dhabi's real estate sector witnessed a decrease during the second quarter (Q2) of 2020, with the average selling prices of apartments decreasing by 1.4% and by 1.3% for villas on a quarterly basis.

Despite the sector's lower sales values in Q2, sales volumes are expected to rise in the second half (H2) of 2020, according to the "Abu Dhabi Market Report Q2 2020" by Chestertons, an international residential property specialist.

The real estate sector in Abu Dhabi benefited from the stimulus packages set amid the COVID-19 crisis, including the increase in the loan to value ratio by the Central Bank of the UAE's (CBUAE) for first-time buyers in March 2020.

In addition, the Abu Dhabi Municipality fee, equivalent to 2% of a property’s purchase price, was waived.

The Head of Strategic Consultancy at Chestertons MENA, Chris Hobden, remarked: "While we expect Abu Dhabi to see falls in sales prices over the second half of 2020, generous developer incentives, such as extended post-handover payment plans, initial service charge waivers and discounted prices should serve to support transaction volumes."

"Further initiatives, by both UAE and Abu Dhabi authorities, to support an economic recovery over 2021 bode well for the capital’s real estate market medium term," Hobden added.