JLL released its report on the performance of Abu Dhabi\u2019s real estate markets during the second quarter of 2014, covering the office, residential, retail, and hospitality sectors.<\/p>\n
Commenting on the report, Craig Blomb, Head of Research at JLL Middle East and North Africa, said: \u201cGrowth in Abu Dhabi\u2019s premium residential sector continued during the second quarter of 2014, while the office, retail, and hospitality sectors saw little change. Investments by relevant government entities continued to dominate the Abu Dhabi market to meet short-term demand, fueled by investments and new job opportunities generated by major government-backed construction projects such as airport expansions, the Etihad Rail network, the Saadiyat Island museums, other major infrastructure projects, and economic and social development initiatives. A sustainable recovery requires the government to continue implementing supply controls, as many real estate developers are now revisiting plans that had been placed on hold following the market downturn. While there remains a need for more supply\u2014particularly of high-quality residential units\u2014it is essential to implement supply controls to ensure priority is given to units that are compatible with existing infrastructure.<\/p>\n
A Quick Look at Abu Dhabi's Real Estate Markets in the Second Quarter of 2014<\/p>\n
Residential Real Estate Sector: Approximately 1,750 residential units were completed on Al Reem Island and at the Dana Abu Dhabi and Al Reef projects during the second quarter of this year, bringing the total supply to approximately 240,000 residential units. Residential unit sales prices also rose for the sixth consecutive quarter, reaching 7% in the second quarter of 2014, while the average increase during the first half of 2014 was 17%. The recent removal of the rent cap in Abu Dhabi had a significant impact on rents for lower-quality buildings, as property owners seized the opportunity to raise rents\u2014which had previously been well below market rates\u2014to bring them in line with current market levels.<\/p>\n
Office Real Estate Sector: Rents in this segment remained unchanged in the second quarter of 2014, averaging 1,540 dirhams per square meter for prime office space and 1,180 dirhams per square meter for lower-grade space. There were no major new space deliveries in the office real estate market this quarter, and total remaining supply remained stable at 3.1 million square meters. With an additional 130,000 square meters expected to come onto the market in 2014, downward pressure on rental rates for lower-quality office space will continue. The vacancy rate currently stands at 30%, and this is expected to rise as more office space is delivered over the next two years.<\/p>\n
Retail Real Estate Sector<\/p>\n
Average rents for shopping malls in Abu Dhabi and those outside Abu Dhabi remained stable this quarter at 3,000 dirhams per square meter per year and 1,820 dirhams per square meter per year, respectively. New additions to the supply at the \u201cNation Towers Galleria\u201d towers on the Corniche, and retail units at the \u201cAl Marasi\u201d complex in Al Bateen, an additional 20,000 square meters of total leasable retail space was brought to market, with construction scheduled for completion in the second quarter, bringing the total retail real estate supply to approximately 2.2 million square meters of total leasable space. More than 400,000 square meters of total commercial leasable space is expected to enter the market by the end of 2014 upon the delivery of Yas Mall on Yas Island. Yas Mall will significantly increase the supply of retail space in Abu Dhabi, which will reduce spending in this real estate segment.<\/p>\n
Hotel Real Estate Sector<\/p>\n
The occupancy rate in Abu Dhabi\u2019s hotel sector increased by 77% (from the beginning of the year through May). While average daily room rates remain under pressure (down 8% from the beginning of the year through May 2014 compared to the same period in 2013), the hotel market has begun to regain momentum and is expected to show improved performance during the remainder of 2014. The sector continues to see new additions with the opening of the \u201cRamada\u201d and \u201dSouthern Sun\u201d hotels in the second quarter of 2014.<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>JLL has released its report on the performance of Abu Dhabi\u2019s real estate markets during the second quarter of 2014, covering the office, residential, retail, and hospitality sectors. Commenting on the report, Craig Bloom, Head of Research at JLL Middle East and North Africa, said: \u201cGrowth in Abu Dhabi\u2019s premium residential sector continued during the second quarter of 2014, \u2026 Read more<\/a><\/p>","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[100],"tags":[],"class_list":["post-1957","post","type-post","status-publish","format-standard","hentry","category-residential"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":""}},"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","trp-custom-language-flag":"","event-thumbnail":"","event-medium":"","event-large":"","event-hero":""},"author_info":{"info":["\u0627\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"\u0633\u0643\u0646\u064a<\/a>","tag_info":"\u0633\u0643\u0646\u064a","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=1957"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1957\/revisions"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=1957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=1957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=1957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}