Sound economic fundamentals, a solid fiscal stance and a stable political environment offer an encouraging outlook for the Abu Dhabi real estate sector in 2012, but analysts warn downside risks still persist with the delivery of new developments for the year in both the commercial and residential sectors
According to a recent market report by global research consultants CBRE, economic growth in Abu Dhabi was estimated at 4.5 percent in 2011, projected to grow by five percent in 2012. Meanwhile, residential rental rates on the main island fell by 16 percent, while declines on the Abu Dhabi mainland were more pronounced with a 30 percent drop.
For the office sector, by the end of 2011, total supply in the Emirate had reached 2.74 million square metres, with average office rental rates ending the year at AED 1,400 per square metre per annum. An estimated 600,000 square metres of space is expected to be delivered in 2012, while a further 23,000 residential units are also expected to be handed over.
