<Apartment sales prices grew by an average of 4 percent in the second quarter of 2014 compared to the first quarter and by 29 percent compared to the second quarter of 2013, while villa prices increased by 2 percent during the same period. Rental prices for apartments and villas grew by an average of 8 percent, according to Asteco Real Estate Services“ report on the performance of Abu Dhabi's real estate market during the second quarter of this year. Jerry Oates, Managing Director of Asteco Abu Dhabi, said: ”Tenant demand for apartments in new neighborhoods within Abu Dhabi's major investment projects has increased, while demand for villas in more affordable developments has increased. The market is expected to strengthen over the coming period, supported by the Rental Index that Abu Dhabi will launch this year, which aims to regulate rental prices and create a more transparent market for UAE national investors.“

<The report showed that selling prices of apartments in Al Reef Downtown fell 2 percent in the second quarter from the first quarter, while rising 55 percent year-on-year from Dh900 to Dh1,150 per square foot. Apartment prices in the Al Raha Beach and Al Munira areas grew by 6 percent in the second quarter to 1,500 per square foot and by 27 percent over the same period in 2013.

Resale prices in the Al Raha Beach and Al Munira areas grew by 6 percent in the second quarter to AED 1,500 per square foot. The sale prices of three-bedroom villas in Hydra Village increased by 4 percent to AED 1.3 million, while the price of similar villas in Saadiyat Beach reached AED 5.8 million, up 2 percent from the first quarter.

The report stated that the sale prices of three-bedroom villas in Al Raha Beach and Al Munira grew by 6 percent in the second quarter to AED 1,500 per square foot, up by 27 percent from the same period in 2013. The report stated that the rental prices of two-room apartments in key areas of Abu Dhabi Island increased by 5 percent to AED 200,000 per year in the second quarter compared to the first quarter, while the prices of similar apartments in terms of the number of rooms in Al Raha Beach and Saadiyat Island stabilized at the prices of the first quarter with a slight increase of 1 percent.

Rental prices of similar apartments in Al Raha Beach and Saadiyat Island remained the same as the first quarter with a slight increase of 1 percent. <The report indicated that the rental prices of three-room villas on Abu Dhabi Island average AED 190,000 per year, while in Hydra Village and Al Raha Beach they reach AED 95 and 140,000, respectively. On the other hand, the rental price of three-room villas on Saadiyat Island reaches AED 310,000 per year, up 5 percent from the first quarter of the year, according to the report.

<Office rental prices in Abu Dhabi recorded a reasonable growth of 3 percent in the second quarter for A-class serviced commercial spaces, while B-class serviced and vacant spaces stabilized at the prices of the first quarter of the year. The rental rate for Class A serviced offices reached AED 1,700 per square meter, while rental rates at Suah Square remained unchanged over the past 12 months due to the suspension of leasing pending confirmation of the free zone status.

According to the report, rental rates for Class A serviced office space stabilized at AED 1,700 per square meter in the second quarter. According to the report, rental rates for B-class serviced office spaces stabilized at AED 800 per square meter and AED 700 for vacant spaces, while rental rates for offices in older, high-quality buildings ranged between AED 700 and AED 1,100 per square meter.

According to the report, rental rates in Suah Square remained unchanged over the past 12 months due to the suspension of the leasing process pending confirmation of the free zone status.