Business 24|7: Land prices and rents for residential and commercial units in new developments outside the capital have fallen by up to 40 per cent since the start of the year, according to real estate brokers.

The drop has been seen in areas such as Khalifa City A, Khalifa City B and Mohammed bin Zayed City.

And analysts said rents are likely to decline by at least a further 10 per cent over the next two months due to an over-supply of villas.

Meanwhile, investors have been hit by a change in the law regarding the construction of villas on individual plots of land. Now they can build fewer villas on individual plots of land, which will reduce their returns. Abu Dhabi Municipality recently implemented the regulations, governing construction outside the capital.

“Land prices around capital fall 40%