Abu Dhabi property sales are expected to remain poor until the end of 2009, but will stabilise in 2010, according to a report by CB Richard Ellis (CBRE).

The second quarter of 2009 saw demand weakening across all market sectors with sales prices declining universally resulting in an abrupt end to the off-plan market. This is in sharp comparison with the same period in 2008 where the market saw rampant growth and appeared unlikely to stop.

Matthew Green, associate director of CBRE Middle East, said: ‘Low levels of investment reflected the unmatched expectations of both existing investors and potential buyers with owners of properties reluctant to succumb to lower values in anticipation of a positive cyclical spin, while buyers are wary of a continued downturn in asset values.’ Rental values in the emirate also fell with landlords having to take a more flexible approach in order to stay in the market.

The third quarter saw prices and sales at a very low level, with average sale prices for high end apartments fall by Dh2,700/sqm to Dh8,600. Apartment rents dropped -5% in comparison to the previous quarter.