Abu Dhabi Real Estate: Racing to Beat Dubai

Long overshadowed by its more glitzy neighbor Dubai, Abu Dhabi is just now beginning to emerge onto the world stage. Until recently, the wealth of the Emirate was a result of its large oil reserves. However, realizing the importance of economic diversification, the government of Abu Dhabi has begun to lay down the foundation for sustainable tourism and banking industries.

Abu Dhabi property: Worth shopping for..

The numbers coming out of Emirate’s fast-growing property market are astounding. The construction industry was worth $6.5 billion in 2007, and between 2005 and 2007, the value of land shot up from an average of $540 per square meter to $1,100 per square meter, according to a study by Colliers International. The percentage represented by the Abu Dhabi mortgage market in the UAE is predicted to leap from 5 percent in 2007 to 22 percent this year.

The study also found that office space occupancy rate is at 99 percent. Demand in this property sector mainly comes from growth in the service and banking industries. In addition, the openings of subsidiaries belonging to multinational companies and expansions of existing businesses along with Abu Dhabi’s economic growth have contributed towards maintaining the impressive occupancy rate. Current asking rents are about 25 percent higher than “incumbent neighbors paying passing rents,” according to Colliers International.

With occupancy rate of 98 percent, the residential market is also growing fast and trying to keep up with demand. Rental prices rose by 22 percent in 2008 when compared to figures from 2007.

The price of residential properties in the city rose by 53 percent from January to April of this year when compared to the same period in 2007, a recent article in The National, Abu Dhabi’s English newspaper, reported.

Short excerpt from a recent Abu Dhabi property news article. Source: www.nuwireinvestor.com/

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