Cityscape Abu Dhabi Brings A Ray Of Hope For Abu Dhabi Real Estate MarketMonday, May 14, 2012
As the sixth edition of Cityscape Abu Dhabi ends, investors and exhibitors have once again started an ensuing discussion regarding the UAE real estate sector, supply and demand. There were announcements of several new projects such as Sorouh Real Estate’s launch of its retail property brand Boutik. The Abu Dhabi based developer will launch this brand in Sun and Sky Towers on Al Reem Island in June, 2012, making it the host of the first Waitrose supermarket in the UAE capital. Within this year, Sorouh will also open a shopping mall, Boutik Al Ain, which will be home to a Carrefour hypermarket.
Baniyas Investment and Development Company (BIDC) also represented its Bawabat Al Sharq project in Bani Yas City. Many other developers also revealed their latest projects in the UAE capital. Overall, the event remained positive and successful. Seeing the interest of people, the organizers said that the show was a bigger success than it was a year ago. The declining rental rates are making Abu Dhabi a more attractive location for both residential and commercial tenants as with falling rents, the city has become affordable for several people.
According to sources at Gulf Related, there is oversupply in the emirate but niche markets still exist and can offer unique growth opportunities for property developers by meeting the needs of more discerning tenants and buyers. Nowadays, buyers look for quality construction, location, facilities, easy access to highways and mix used developments akin to the ones on Reem Island and Corniche. Some believe that if developers build property ideally located that is different from what we have on the market today, there is potential for growth in the residential sector.
According to property developers, the biggest new attraction for residential and retail developers in the UAE is Al Ain. Right now, Al Ain seems to be attracting serious interest from investors and developers alike at the moment. Several new retail schemes are underway in Al Ain.