Arab Today, arab today abu dhabi real estate market witnesses growth
Last Updated : GMT 17:11:53
Arab Today, arab today
Arab Today, arab today

Abu Dhabi real estate market witnesses growth

Arab Today, arab today

Arab Today, arab today Abu Dhabi real estate market witnesses growth

Abu Dhabi - WAM

The Abu Dhabi real estate market witnessed growth in the prime residential sector in the first quarter of 2014, says JLL, a leading real estate investment and advisory firm, it its first quarter (Q1 2014) Abu Dhabi Real Estate Overview released yesterday at Cityscape Abu Dhabi. The Abu Dhabi real estate market turned continued to show signs of growth and recovery during Q1 2014. This optimism remains focussed on the prime residential sector which witnessed increased rents and prices and near to full occupancy for high quality product. The retail segment continues to experience growth, while the hotel and office sectors remain stabilised. According to the Abu Dhabi Market Overview, Q1 2014, the first quarter of 2014 continued to witness growth in the prime residential market and further stabilisation of the office and hospitality sectors. Retail rents for malls on Abu Dhabi Island witnessed a slight increase during Q1. Short-term demand will be fuelled by investment and job growth from new major construction and economic development projects, combined with a general improvement in market sentiment. Long-term market recovery will be dependent on the pace of the government's ongoing initiatives to diversify the economy and generate sustainable new employment growth as many of these initiatives remain a work-in-progress. Residential stock increased by around 1,700 units in Q1, bringing the total stock to around 238,000 units. Additions to supply included units within Reem Island, Saadiyat Island and Al Reef. The residential sales market continues to rise due to positive investor sentiment and increased demand from end users. This led to price growth for the fifth successive quarter - following 25% annual price growth for prime, high quality units during 2013, prime residential prices grew by a further 9% during Q1 2014 - although it is important to note that the volume of transactions remains limited. Demand for the residential rental market also continues to rise driven by new job creation and government policies leading to 17% rental growth for prime, high quality units during 2013 and 4% growth during Q1 2014. The removal of the rent cap is expected to lead to rents increasing further this year. The overall office market remains over-supplied, with new additions to supply continuing to rise. Large-scale demand continues to be dominated by government entities and state-owned enterprises, although there are indications that private sector occupier demand is starting to increase. While prime rentals continue to be stable, the future growth of the office market depends on government economic development initiatives to grow new demand and increase private sector activity. Office supply currently stands at 3.1 million sq. m, with an additional 78,000 sq. m of office GLA expected to enter the market during 2014. The future additions to supply will continue to place downward pressure on rents for secondary space. There were a number of major completions in the office market this quarter, including the NBAD building at Capital Centre and the Siemens building at Masdar City. Grade A and Grade B office rents have remained unchanged in Q1 2014 averaging Dh 1,540 / sq. m and Dh 1,180 / sq. m. For retail, there currently remains a limited supply of high quality malls relative to the spending power of the population. Retail stock remained stable at 2.2 million sq. m GLA this quarter with no major deliveries. Average line store retail rents for malls on Abu Dhabi Island increased this quarter to reach Dh 3,000 / sq. m per annum. Average line store rents in malls outside Abu Dhabi have however decreased to reach Dh 1,820 / sq. m per annum from Dh 1,990 / sq. m per annum in Q4 2013. The future outlook for retail is positive as consumer demand continues to increase from population, employment and tourism growth. However there is substantial supply in the pipeline including several super regional malls which will cause the market to become more competitive. In spite of rising supply, there is a major shortage of neighbourhood and convenience retail. The hotels sector continues to witness new completions with the opening of Novotel Al Bustan and Royal Rose Hotel in Q1 2014. Occupancies increased to 76% (YT February). While ADRs remain under pressure (decreasing by 14% in YT February 2014 compared to the same period in 2013), the hotel market has started to recover and is set to experience improved performance over the rest of 2014. David Dudley, Head of Abu Dhabi office at JLL MENA said, "It is encouraging to see further signs of growth and recovery. The general theme is selective recovery - with different sectors at a different stage of recovery, and the residential sector leading the way. A two tier market exists with a significant divergence between high and low quality product (in terms of quality of location, design, functionality, asset management etc). Sustained market recovery is very much dependent on continued government investment in to infrastructure and economic development to boost demand."

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today abu dhabi real estate market witnesses growth Arab Today, arab today abu dhabi real estate market witnesses growth

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Air raid kills eight women, child

GMT 06:42 2017 Friday ,17 February

Air raid kills eight women, child
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: عقارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 15:16 2017 Sunday ,19 February

Apple to start India operations with iPhone SE

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday