Construction sector drives Abu Dhabi rental demand
Half of property rental enquiries received in Abu Dhabi during Q3 2015 came from the construction sector, according to Knight Frank research
The construction sector is driving demand within the UAE’s rental market, according to research from Knight Frank.
Half of rental enquiries received in Abu Dhabi during Q3 2015 came from the construction sector, according to the consultancy’s Q3 2015 industrial and logistics report.
Meanwhile, the UAE continues to strengthen its position as a global logistics hub, owing to its “geographic positioning and world-class transport infrastructure,” the report added. Abu Dhabi’s property sector has remained stable despite low oil prices, and rentals in Dubai have risen.
Commenting on the findings, William Neill, partner – commercial leasing at Knight Frank, said: “Despite the fall in oil prices, rents in Abu Dhabi have remained stable across the Emirate. The lack of quality accommodation being in short supply across the industrial market is one of the key reasons for rental rates holding Q4 2014 levels.”
The consultancy found that despite a fall in the overall number of real estate enquiries, rentals have not been affected during the third quarter. This, according to the report, is due to “limited quality industrial accommodation and no additional supply expected in the near term”. The largest number of enquiries received in Abu Dhabi in Q3 2015 came from the construction sector (50%), and the average size of the sector’s requirements was 1,500 sqm.
Across the industrial districts tracked in Dubai, there was approximately 4% growth in rentals – on average – over the last six months. Jafza Class 1 rents witnessed an increase of 2% during this period and continued to represent the favoured location for global occupiers.
Neill concluded: “Over four-billion people live within eight hours’ flight from Dubai, covering major markets in Africa and Asia. Dubai’s geographical location, supply chain (ports and airports), legislation, and infrastructure make it an ideal supply and redistribution gateway.”