​Our first quarter (Q1) 2013 Abu Dhabi Market Overview report covers the office, residential, retail and hospitality market segments, highlighting that selective sub-markets are heading back in to recovery.

Key Highlights

• Overall real estate markets remain in over-supply, with additional new supply still in the pipeline leading to further increases to market-wide vacancy rates.  However, there continues to be a significant distinction between high grade and low grade product – with recovery now in sight for prime real estate as  performance of lower grade stock continues to decline.
  
  
• During Q1 2013 for the residential sales market, there was evidence of an increased volume of residential sales transactions and approximately 8% increase in residential sales prices for prime stock. 
  
  
• Similarly during Q1 2013 prime residential rents increased by approximately 8% in selected higher quality schemes. Conversely, rents in secondary quality residential stock have continued to fall.
  
  
• The overall office market remains over-supplied, pending further progress with government economic development initiatives to diversify the economy and generate new jobs. However, prime office rents have started to stabilise, with prime office rents having remained stable the last three quarters.
  
  
• The key trend for 2013 will be a continued divergence of the market between high and low grade stock – with high quality developments meeting end user requirements achieving stabilization, or improved performance, and poorer quality stock continuing to decline.