The sales price of residential houses and apartments has risen 53 per cent in the past 12 months.
Research by property consultants Colliers International for year ending March 31 shows the prices rose by more than half compared to 18 per cent in the same period in the previous year.
Colliers also found that occupancy levels have reached 98 per cent in the capital and that rents for new leases would continue to rise as the market will remain under supplied for the next three years.
It said an additional 100,000 units were required by 2010 to absorb excess demand.
However, between 2011 and 2013, assuming developments are completed on schedule, as many as 140,000 additional units are expected to be delivered, the report found.
But the report added that the risk of oversupply was likely to be offset by probable development delays and the opportunity to widen scope of foreign ownership framework.
It noted three major concerns with the capital's property market: the market is too heavily weighted towards high-end developments; there is uncertainty about plans by the newly created Abu Dhabi Commercial Properties to introduce additional supply; and the likelihood that residential components within master-planned developments could be scaled back to comply with Plan Abu Dhabi 2030.
/The National/
Research by property consultants Colliers International for year ending March 31 shows the prices rose by more than half compared to 18 per cent in the same period in the previous year.
Colliers also found that occupancy levels have reached 98 per cent in the capital and that rents for new leases would continue to rise as the market will remain under supplied for the next three years.
It said an additional 100,000 units were required by 2010 to absorb excess demand.
However, between 2011 and 2013, assuming developments are completed on schedule, as many as 140,000 additional units are expected to be delivered, the report found.
But the report added that the risk of oversupply was likely to be offset by probable development delays and the opportunity to widen scope of foreign ownership framework.
It noted three major concerns with the capital's property market: the market is too heavily weighted towards high-end developments; there is uncertainty about plans by the newly created Abu Dhabi Commercial Properties to introduce additional supply; and the likelihood that residential components within master-planned developments could be scaled back to comply with Plan Abu Dhabi 2030.
/The National/
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