ABU DHABI The 9th edition of Cityscape Abu Dhabi that begins next week will see the launch of more modest-sized releases than large-scale developments, experts have said.
The biggest real estate event to be held from April 21 to 23, will see more than 130 exhibitors from around the world displaying products across 18,000 square metres of exhibition space at the Abu Dhabi National Exhibition Centre.
Speaking to XPRESS, David Dudley, regional director of JLL Real Estate and headline speaker at the Market Overview Forum, said massive scale releases are unlikely this year. “Even big developers are expected to announce modest scale releases that are high in quality. This year’s Cityscape would be about good products but smaller schemes,” he said.
Shortage
Dudley, who will release the performance of various real estate sectors for the first quarter of 2015, said rental prices will not see a major dip in Abu Dhabi.
“Residential rents will stabilise but will not dip this year.”
“Given a current shortage of quality housing, we expect rental growth to continue, but at single-digit growth rates, rather than the double-digit rates we saw from 2013 to 2014,” said Dudley.
Forecasting a reduction in government spending this year due to the recent decline in oil prices, the expert said employment creation and residential demand growth will be sustained by projects commenced while the oil price was high.
“But if the oil price continues to remain low for a longer period, rents will be affected,” Dudley added.
However, he said Abu Dhabi and the wider UAE remains a safe haven for real estate investment compared to other parts of the region. ‘While investment opportunities exist across each sector, it is important to be selective. Because value performance varies significantly from sector to sector and location to location.”
Talal Al Dhiyebi, Chief Dev-elopment Officer for Aldar Properties, another panellist at the Market Overview Forum, will discuss why the UAE capital is a key hub for global investment.
“Abu Dhabi is developing into one of the world’s great new cities, with strong economic growth coming from non-oil sectors such as finance, education, tourism and healthcare. Property guidelines have been successful in stabilising the market and therefore investors are eager to invest as they feel that they can rely on the government to safely regulate the market when required,” said Dhiyebi.
Iconic destinations such as Shams Abu Dhabi and Yas Island have put Abu Dhabi on the map and resulted in significant foreign interest in the capital as an international real estate market. According to the Dubai Land Department, foreign investors accounted for nearly half of all real estate transactions in the UAE in 2014.
