Key takeaways from Cityscape Abu Dhabi
Cityscape Abu Dhabi, the UAE capital’s largest property show concluded on a high on Thursday.
More than 130 international and regional developers were there at the event showcasing projects across 18000 sqm of exhibition space.
All the major UAE developers registered their presence at the exhibit this year, including Aldar Properties, Wahat Al Zaweya, Tamouh, Mubadala, Bloom Properties, Masdar, Al Qudra, Eagle Hills, Tourism and Development Investment Company (TDIC) and Reem Developers, showcasing their latest projects to potential investors.
A study conducted on-site by Informa Exhibitions reveals that 81 per cent of Abu Dhabi-based developers launched new projects, while 64 per cent of exhibitors showcased existing projects, highlighting the positive sentiment of the real estate market
The event also had international exhibitors coming from across the globe, including the Cayman Islands, Egypt, Jordan, Lebanon, Kuwait, Latvia, Nigeria, Portugal, Serbia, Thailand, the United Kingdom and the United States.
Here are some of the major announcements at Cityscape Abu Dhabi:
- Aldar Properties launched three residential developments, two on Yas Island and one on Reem Island.
- Abu Dhabi’s Bloom Holdings has launched Park View, a mixed use development that is set to take shape on the Saadiyat island in Abu Dhabi.
- Masdar City, Abu Dhabi’s urban innovation ecosystem, launched a new concept for sustainable villas that generate enough solar energy to power the homes year-round. The eco-villas were showcased at Cityscape.
According to CBRE, residential sales in Abu Dhabi are expected to remain relatively stable in the short term, while office space is likely to enjoy stronger demand for both occupancy and rental on the back of “limited new good-quality supply.”
“However, with rising secondary office stock, the flight-to-quality trend will become increasingly evident, as rentals fall further for inferior accommodation,” said Mat Green, Head of Research and Consultancy for the UAE at CBRE Middle East, in a press statement.
JLL on the other hand sees a reduction in government spending to result in muted rent increases in the capital.
Speaking at the opening of Cityscape, it forecast Abu Dhabi rent increases to slow to single-digit percentage increases this year.
Rents in the UAE capital rose by 11 percent last year and 17 percent in 2013, as the market bounced back from the financial downturn. Meanwhile, the rate of growth of property prices, (25 per cent) in both 2013 and 2014 is “not sustainable”, according to David Dudley, Regional Director at JLL.