Abu Dhabi real estate 'set for major growth'
Abu Dhabi, April 1, 2012
The economic growth in Abu Dhabi offers encouraging outlook for real estate sector as more than 23,000 residential units and 600,000 sqm of office space are set for delivery this year.
Sound economic fundamentals, a solid fiscal stance and a stable political environment are adding to the confidence, according to a recent market report released by global research consultants CBRE.
The economic growth in Abu Dhabi was estimated at 4.5 per cent in 2011, projected to grow by 5 per cent in 2012, it stated.
Meanwhile, residential rental rates on the main island fell by 16 per cent year-on-year, while declines on the Abu Dhabi mainland were more pronounced with a 30 per cent drop.
For the office sector, by the end of 2011, total supply in the emirate had reached 2.74 million sqm, with average office rental rates ending the year at Dh1,400 ($381) per sq m per annum.
An estimated 600,000 sq m of space is expected to be delivered in 2012, while a further 23,000 residential units are also expected to be handed over.
The figures have been released ahead of Cityscape Abu Dhabi, which takes place from April 22-25 at the Abu Dhabi National Exhibition Centre, and while there are further deflationary pressures in rents and sales anticipated over the next 12 months, the market appears to be steadier than at the same point last year.
'The overall fundamentals of the Abu Dhabi real estate market remain strong with both economic and population growth anticipated for the year ahead,' said CBRE Research & Consultancy head Matthew Green.
'The existing CBD should also remain in high demand for both residential and commercial spaces, particularly as Abu Dhabi awaits further completions of projects in Sowwah Square, Marina Square and the wider Reem Island development.'
Cityscape Abu Dhabi group director Chris Speller said the Abu Dhabi real estate market is now a far more stable environment with sales and rental rate declines slowing against the same period last year.
'There is some downside pressure still present in the market, although the increased level of options is good news for occupiers,' he added.-TradeArabia News Service