Sunday, March 08, 2009

Abu Dhabi property market indicates strong confidence

The Abu Dhabi property market indicates a strong confidence, based on stable and genuine market demand, rather than speculation, which has led to fundamental growth of the UAE capital, according to development experts.

Speaking during the first Cityscape Connect Business Breakfast in Abu Dhabi, about 150 real estate executives and investors got together and discussed the current challenges faced by the market, ahead of Cityscape Abu Dhabi, due to take place between the 19th and 22nd April 2009 at the Abu Dhabi National Exhibition Center.

The global economic turmoil has cast a shadow over the property sector, growth prospects and changing market dynamics, said Rohan Marwaha, the Managing Director of Cityscape.

The Cityscape Connect initiative is introduced by IIR Middle East, the organizers of Cityscape Abu Dhabi. Speaking during the session, Marwaha, said that this year's event is quite strong with the growth of 30% of last year, and 48% increase in advance registration of visitors.

Charles Acworth, Director-Research and Head of Commercial Leasing for Aldar, said Abu Dhabi is the 'location of choice in Middle East' for retailers.

He expressed strong confidence in the Abu Dhabi retail market, hotel and residential sectors. Though some "reworking" is still being done, there is an undersupply of residential property for end-user occupiers, and the situation is hoped to continue for next five years.

Speaking about the residential market, Gurit Singh, the Chief Property Development Officer of Sorouh, said that stability is likely to return to rental marked within four quarters from now, depending on supply of new properties to the market.

The Managing Director of Burooj Properties, Adel Zarouni, said that the overall growth of Abu Dhabi property marked is genuine, and is not affected by speculation.

The Legal Consultant with Clyde & Co., Scott Ajtken, said that the only challenges identified are the need to find new finance options for new developments and the need for regulations covering both developers and investors.

Cityscape Abu Dhabi 2009 has generated good response and support from industry leaders.

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