Abu Dhabi Urban Planning Council unveils Real Estate Forecast Study to streamline sector development

Measured and sustainable growth key in safeguarding transparency through balanced supply and demand model

In line with its strategic role to facilitate the planning and implementation of the urban structure framework for the Abu Dhabi metropolitan area, and in accordance to key market indicators, the Abu Dhabi Urban Planning Council (UPC), the agency responsible for the future of the emirate’s urban environment, has unveiled a real estate forecast study for Abu Dhabi’s metropolitan area, which accounts for 60 per cent of the emirate’s residents and 59 per cent of its total employment.

Titled Abu Dhabi Real Estate Forecast the study is designed to enhance transparency across the residential, commercial, retail and hospitality sectors of the real estate industry whilst aligning Abu Dhabi with the world’s most mature markets.

Projections of future supply up to 2013 are based on data gathered through a detailed review of all projects with adjustments to reflect the likely completion dates and phasing of the projects.

According to the study, demand is expected to increase across all sectors over the next four years due to continuous population growth; the fastest increases in supply will be recorded in the office and hotel sectors averaging an annual growth of 18 per cent till 2013.

“The study reflects UPC’s strategic cooperation with the real estate and construction industries to develop transparency in real-estate supply and demand for the benefit of all stakeholders,” said His Excellency Falah Al Ahbabi, General Manager, Abu Dhabi Urban Planning Council.

“Our findings have helped us produce a real estate supply and demand model to assist smart decision making at all levels and across all sectors while ensuring that the level of consented supply is in line with scientifically forecasted market demand,” he added.

“The forecast models developed as part of this effort will be utilized to produce future demand and supply trends which would be released annually by the UPC,” he said.

Available on line at the UPC’s web site www.upc.gov.ae (section “development review”), the Abu Dhabi Real Estate Forecast Study with highlights across the residential, commercial, retail and hospitality sectors of the real estate industry, will keep all stakeholders updated and informed of any outlook changes likely to occur due to changing economic conditions.

The study uses a top-down macroeconomic model to project both employment and population growth for the Abu Dhabi metropolitan area and translates it to likely demand up to 2013.

According to the study, real estate development in Abu Dhabi needs to be planned with projections for soaring population increase believed to reach 1.2 million in 2013 from today’s 969,000, based on an average annual growth of 5.2 per cent for the duration of the study.

The Abu Dhabi Real Estate Forecast Study is part of a wider Abu Dhabi government initiative to introduce regulatory reforms geared towards establishing a standards-setting business and legal framework that fosters transparency, promotes best practices and endorses a sustainable growth-enabling environment.