Demand for Dubai properties is outshining other property markets of the UAE as most of the people only dream to be a part of Dubai realty sector. This might be one of the reasons why Dubai realty market has shown signs of tremendous recovery as compared to some of the other states in the United Arab Emirates. Abu Dhabi was once the biggest rival of Dubai real estate market but since the recession has hit the market, Abu Dhabi realty market has faced a downfall both in residential and commercial property rentals.
The performance report of Abu Dhabi real estate market indicates a steep fall in rents of around 6 percent in Q3 2012compared to previous quarter. A similar situation is observed in the commercial property sector where properties revealing either a decline or no change in rental amounts. Regardless of the reason behind this but it is a fact that the state has shown bleak performance since the recession.
Now that the affects of recession receding, Bayut’s experts are expecting better performance from Abu Dhabi real estate market in the upcoming year. Experts believe that Abu Dhabi real estate market can kiss goodbye to the economic turmoil with the beginning of 2013. Following are the key factors that can pave way for the recovery of Abu Dhabi real estate.
The Abu Dhabi government and the other officials will have to play an active role in order to revive the realty sector. When the recession hit Dubai property market, most of the entrepreneurs shifted their businesses to Abu Dhabi. Since the state is already home to many mega businesses, all government has to do now is to introduce novel reforms to protect the businesses, investment and take care of entrepreneurs’ interests.
These protective measures will give boom to Abu Dhabi commercial property market. If we closely view the performance of Abu Dhabi rental market, we can notice that the rate of decline is slowing down and there is not enough way that the downward trend can continue throughout 2013. Hence, the commercial property rents are bound to recover somewhere during 2013.
Out of all the best performing areas in Abu Dhabi, Al Reem Island is on top as it offers excellent long term growth potential. Al Reem is a mega development in Abu Dhabi that is fully equipped with the finest schools, golf courses, art galleries, beaches, hotels, resorts, restaurants, shopping malls, recreational centres and health care facilities. It is a well-positioned community and elude avoid any significant re-pricing in the region.
It has everything that can make it extremely attractive for the investors and residents in the long term. Apprehending the demand of Al Reem Island apartments and other properties, the developers created an environment in which most of the people would want to live there. This particular development can play a key role for the future of Abu Dhabi real estate market.
The government should keep a check on the number of commercial and residential units which are in the supply line. Limited supply can uplift the demand of sale and rental properties in Abu Dhabi. New regulations should be introduced by the government and it must halt or cancel the additional property projects just to slow down the supply. In order to let the sector recover, government should slow down the supply of property in the emirate.
Experts are hopeful that 2013 Abu Dhabi realty market will recover faster if government and officials take care of all the above mentioned points.