Arab Today, arab today abu dhabi real estate market witnesses growth
Last Updated : GMT 08:53:10
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."

arabstoday
arabstoday

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

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 France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: عقارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
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