Great expectations: Cityscape Abu Dhabi

It's that time of the year when the country's, especially the capital's, real estate sector undergoes a litmus test. While things certainly look better, whether or not Cityscape Abu Dhabi, the premier real estate exhibition, will have a positive impact on the market remains to be seen. Abu Dhabi's property market, after facing extreme challenges brought about by the global downturn and the consequent project delays, is now looking up with a number of developments being delivered or nearing completion.

Cityscape Abu Dhabi assumes greater significance this year compared to the last couple of editions because there is a general perception that confidence is gradually returning to the market. Definitely, it's not doom and gloom anymore and the completed projects are attracting buyers, according to real estate agents operating in the capital. So, what does the event mean to the industry? Will it have an impact on the sector giving it the much needed impetus to get back on track? Property spoke to a few industry members to find out what they expect from the show this year.

Rohan Marwaha
Managing director, Cityscape 

The real estate sector in the Middle East, particularly the UAE, has learnt a lot of lessons over the past 18 to 24 months. The key message for investors has been of transparency, delivery and completion. Confidence was affected, however, with new legislation and tightening of regulation, we, at Cityscape, continue to see investors and business returning at a steady pace but with cautious optimism.

Cityscape Abu Dhabi provides an excellent platform for those involved or interested in the Abu Dhabi market to access information and gain a better understanding, meet industry experts and get the real taste of the emirate's real estate sector.

The research we conducted recently found that 25 per cent of property professionals admitted to having a poor understanding of the market while over 30 per cent stated that there wasn't enough readily available information. As a result, the conference programme we have developed has a variety of presentations and discussion forums to help the real estate community get to grips with new legislation, gain insight on how to do business here and access opinion and advice from leading experts.

Tim Boswell
CEO, Ocean View Real Estate 

Cityscape Abu Dhabi can only have a positive impact on today's realty market. It will be interesting to hear the visitors' impressions of Abu Dhabi, especially those who may not have visited [the city] for a few years, as they will be witnessing the enormous growth in infrastructure in the region.

Historically, Cityscape itself has played a vital role in supporting the country's realty market, providing an opportunity to showcase visionary projects. Visitors will have the chance to see past, present and future plans on a scale almost unimaginable. The not too distant future will bring the completion of numerous residential, commercial, retail and leisure projects in Abu Dhabi, adding non-oil economic stability.

Cityscape is the magnet that attracts the audience, where no two visitors are the same. There will be the cynical, the past investor looking for the next big boom, the cautious first-time buyer, developers, architects and designers. But from whatever background these visitors come from, and whatever their intentions when they leave Abu Dhabi they will feel energised, vibrant and optimistic about the future of ‘new Abu Dhabi'…

Loshini Lawrence
Operations manager, Better Homes 

The event is expected to create a feeling of positivity, refreshing the real estate industry.

In line with the Abu Dhabi 2030 plan, it is expected that major developers will be looking to expose their new developments during this exhibition. There is talk of more free zone areas expanding, freehold for nationals being developed and updates on current projects being featured during the event. We also expect to see few new projects launched within the residential sector.

With regard to legal framework, we are expecting some form of regulatory update for the Abu Dhabi real estate industry. This is long-awaited and expected to give the market a new approach to business.

On the other hand, there is word that banks are becoming more fluid and looking to re-start the mortgage business aggressively. This will help buyers, particularly those who have been waiting for the right price, product and time to buy, especially with several handovers being planned over the second and third quarters of this year.

All in all, we are looking forward to action by major developers, finance houses and authorities to keep the 2030 plan alive.

John D Hanafin
Managing director, Sovereign Corporate Services 

A strategic game plan to diversify Abu Dhabi's economy away from oil will require at least $167.5 billion from the government's pockets over the next five years. The bulk of this budget (51 per cent) has been earmarked for construction projects. That would lead me to believe that there are huge opportunities in the Abu Dhabi real estate market, not just in the construction sector, but for all the related industries.

Exhibitors from the region and around the world will be taking part in this year's event, over a huge floor space, and I expect a good number of these participants to make many new announcements for mega deals in Abu Dhabi. I think the show will be bigger and busier compared to the previous year's event and it will have a positive impact on the market.

The next few years will see the completion of numerous projects in and around Abu Dhabi, including luxury residential and resort communities, shopping malls, hypermarkets and low-, mid- to high-income residential communities. The square foot prices are also dropping, and we're again seeing foreign investors coming back to the market.

Angela Fowler
Head of sales and distribution, Property Finance Link 

Like any form of marketing, Cityscape is a good indicator of both the confidence and the direction of property developers, and everyone is watching for the ‘green shoots' of growth in the market.

It's important to understand that Cityscape used to be the forum to announce new projects, but it's moving towards focusing more on the projects under construction and nearing delivery, and that's a confidence-builder for the long-term players in the market, including finance providers and banks. What's really important to understand is that there are indicators the market has reached a balance point, with a lot of consumers now being owner-occupiers who are clearly more long-term in their outlook.

Lenders have also priced their home loans a lot more competitively and you can see that with lower interest rates, special offers and the like. These kinds of things obviously appeal to long-term owners. Some people still believe that lenders are not offering finance for property but that's absolutely not true — they are lending. If Cityscape can get that message alone into the market, then that is a good result in itself.

Ibrahim Eskiocak
CEO, Aabar Properties

This year's Cityscape Abu Dhabi provides a platform for those in the real estate industry to come together to share knowledge and generate new business opportunities.

Despite the global financial downturn, Abu Dhabi has continued along a sustained path of developing its infrastructure and economic diversification. Cityscape Abu Dhabi is a key event in our home city that enables us to consider the current shape of the sector and its future.

Aabar Properties is a relatively new company - it was formed in 2010 and is a subsidiary of Aabar Investments, which is one of the capital's leading investment companies. This upcoming real estate exhibition is a key event, and Aabar Properties will use it to showcase its brand and developments. This year we have associated ourselves as the platinum sponsors of the event.

We are looking forward to exhibiting a number of our key developments at our stand, including those located at Al Reem Island, Al Raha Beach, Saraya and Rawdhat. Our first project, a residential development, based in prime location at Marina Square on Reem Island in Abu Dhabi, will be handed over shortly.