Residential prices have been falling quarter-on-quarter since the beginning of 2017 as the balance of supply and demand worsens.

The United Arab Emirates central bank Quarterly Economic Review found that residential real estate prices in neighbouring Abu Dhabi fell 6.1 per cent, after a 6.9 per cent slide in Q2.

Subdued employment growth in the UAE is one factor behind the weakening demand for real estate. 

Employment grew by only 0.6 per cent from the same time last year - the slowest rate in four years, the central bank said.

The central bank figures showed employment in sectors like construction and real estate expanded, while white-collar jobs fell, in some cases at their fastest rates in years.

Last week, the UAE government announced a scheme to offer long-term vias to property investors, senior scientists, and entrepreneurs in the hopes to boost employment in white-collar professions.

Source: Central Bank of the UAE, Gulf Business.

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