Rents for two-bedroom apartments fell 2% Y-o-Y and selling pricing by 5% Y-o-Y in 2Q16, with lower number of transaction volumes Y-o-Y, according to a recent report by JLL on Abu Dhabi Real Estate. Vacancy rates “slightly increased” during 2Q and are expected to further increase in 3Q as expats with families leave at the end of the academic year or choose to downsize as their tenancies expire, according to the report. c4,000 units are expected to enter the market before end of 2016, mainly within Reem Island, Rawdhat and Saraya, although based on past trends, a percentage of these could experience delays at handover. c400 units were delivered during 2Q, bringing the total residential stock to c246,400 units. ADNOC had announced it was planning to cut 5,000 jobs before end of year, which - combined with further job cuts in the government and other sectors - may lead to a decline in population growth, according to JLL. The newly-introduced 3% municipality fee on Abu Dhabi expat rentals, combined with the previous removal of fuel and water subsidies, continued to affect the cost of living. Additionally, a reduction in employment allowances and benefits is contributing further to a reduction in disposable incomes, leading to some residents looking to downsize. (Arabian Business)