The once booming real estate sector of the Abu Dhabi would have to wait for at least 2 years to head toward its past glories. The property market experts said that property prices are expected to remain flat in coming two years due to couple of factors including hesitation of lenders to lend and easy options for buyers available in Dubai.

Blair Hagkull, Regional Managing Director of global property advisory firm, Jones Lang LaSalle added, "The Abu Dhabi realty market is certainly flattening, though some pockets on Abu Dhabi Island will continue to demand premiums due to their prime location. The developments and the pace of delivery on Reem Island properties and those on the Al Raha Beach will be closely watched by the investors and will impact the market, moving forward."

Property prices in Abu Dhabi started downward trend following the tough financial conditions due to global financial crisis. Prices were sky rocketing around mid-2008. A two-bedroom villa in Al Reef project, once selling at Dh1.9 million, is now available for Dh1.25 million.

Sudhir Kumar, Managing Director of Realtors International said that the changed economic scenario is due to decline in business confidence, tight liquidity conditions and difficult mortgage options available in the market.