Real estate investors in Abu Dhabi are delaying property purchases until new developments have been completed, despite property prices in the capital remaining stable, according to Landmark Advisory.

October and November had been two of the most active sales months in 2009, as demand was focused on close-to-completion developments such as Marina Square, Al Reef Villas, Sky Tower and Al Bandar. However, buyers continued to look for distressed sales as prices had not noticeably increased.

Jesse Downs, director of research and advisory services at Landmark Advisory, said: “Despite an increase in sales activity in the third quarter, demand levels since mid-November have waned, leading to limited sales volumes in December.

“By reducing the price, Al Bandar is likely to start attracting more buyers that were until now focused on less expensive developments in Marina Square, which are currently transacting in the secondary market at AED 1,250-1,300sq/ft.”

The company’s latest sales guide revealed that transaction prices had remained stable throughout Q4 2009 but are unlikely to increase until the properties are handed over in 2010.

Downs continued: “Our findings show that while buyers through Q309 were still primarily end-users, this demand segment is now waiting for clear signals of progress within these nearly completed developments before engaging in any activity. Only a small number of investors are currently active in the market. The postponement of delivery dates, most notably for Al Bandar (originally scheduled in Q409) and Marina Square (originally scheduled in Q409) may be further restricting demand.”