Jones Lang LaSalle, the world’s leading real estate investment and advisory firm, today released the latest report “Abu Dhabi City Profile – Abu Dhabi: Sustainable Capital’. Key chapters of the research focus on supply, the impact of the international economic slowdown and the future prospects for the Abu Dhabi real estate market.
Abu Dhabi’s real estate markets remain under-supplied in most sectors with vacancies currently at very low levels, in Jones Lang LaSelle’s view. This situation is expected to change shortly for the office market as more supply comes on stream. The residential market is expected to remain under-supplied, particularly for lower to middle market segments. Retail supply will remain more balanced relative to spending power and the residential market will generally remain under-supplied, particularly for lower to middle market segments.
Abu Dhabi has been impacted by the international economic slowdown over the last 18 months. This has resulted in a real estate market correction with suppressed demand, a significant adjustment to rental and pricing levels and delays of announced development projects.
According Jones Lang LaSalle’s research, the future prospects for the Abu Dhabi real estate market remain very strong, due to the combination of sovereign and private wealth, the government’s vision and its strategic investment initiatives. The key to unlocking this long-term success will be achieving greater transparency, improving the regulatory framework and the transition from the reliance on a short term speculative development model to a more stable investment horizon.
