Abu Dhabi residential strongest real estate sector
Figures revealed in JLL’s Q3 Abu Dhabi Real Estate Market Overview
Abu Dhabi residential property remains the strongest performing section of the real estate sector, according to real estate consultants JJL.
The success has been driven by positive investor sentiment, population growth and potential future under-supply.
Meanwhile, the office market has witnessed growth for the first time after being stable for the past two years.
Vacancy rates have reduced due to an increased market absorption and a reduction in speculative supply in the pipeline.
Retail rents for malls on Abu Dhabi Island have remained stable this quarter, but some malls outside island have seen a marginal increase in rents as they have experienced higher footfalls.
The Abu Dhabi hotel sector has continued to recover, with the year to August seeing higher occupancies (71%) compared to 2013 (64%).
For the first time, Abu Dhabi hotels experienced higher occupancies than Dubai in July (55% compared to 50%).
The figures were announced in JLL’s third quarter Abu Dhabi Real Estate Market Overview report.
David Dudley Head of JLL’s Abu Dhabi office, said: “The third quarter of 2014 recorded the continued growth of prices in the residential market and growth in office rents, with continued stabilization in the hospitality, retail and office sectors.
"All sectors of the Abu Dhabi market are now positioned in the recovery stage of their cycle, for the first time since 2008.”