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Abu Dhabi Market Set for Increased Sales Activity

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Abu Dhabi  Abu Dhabi Real Estate  Rentals and Lettings 

Abu Dhabi Market Set for Increased Sales Activity

By - Wednesday 13 April 2011

An increase in rental and sales activity in the second quarter of 2011 is expected to lift the Abu Dhabi property market. The release of a number of delayed projects in the emirate is expected to be a primary driver behind the demand, the latest report from Cluttons has forecast.

Following two years of stalemate in the sector, the release of these units will result in a spell of increased rental and sales activity, the consultancy noted. This, the firm claims, will cause a drop in average rental rates and the growth of a two tier market.

Indeed, rentals at the lower end of the market have seen drops of around ten per cent, while price falls in more prestigious areas have been less severe - at around five per cent.

According to Cluttons, the occupier market continues to face challenges largely due to subdued economic growth and weak business confidence.

"As ever, successful landlords are those that offer most attractive terms and incentives and who recognise the benefits of a fully leaded building against holding out for better rents. For landlords to remain competitive they will need to be more creative in their offerings and consider breaking up larger shell and core floor plates," it explains.

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