The recovery of Abu Dhabi's real estate market is nearly two years behind rival emirate Dubai and will not see any upturn until at least 2014, according to a report from real estate agent Jones Lang LaSalle (JLL).
“With an increase of 65 percent in the number of transactions in 2012, the Dubai real estate sector will continue to shift up a gear in 2013, experiencing a broader based recovery on the back of continued economic growth,” said Alan Robertson, CEO of JLL MENA.
Forecasts showed that the number of new residential and hotel units in the UAE capital will continue to rise in 2013, while a recent glut of office space coming onto the market in recent years will see the 2013 supply decline. Around 550,000 sqm of office space will come on stream this year, compared to 570,00 sqm in 2012.
By comparison 68,000 sqm of retail space is expected to come into the market, up from 42,200 sqm in 2012. This is a result of a lack of space handed over in 2012, while 2013 will see the launching of a number of large mall projects.
“2013 will see an increase in confidence and sentiment in the Dubai market generally. The market will experience a broader based recovery, with all sectors seeing some pockets of rental growth in 2013,” said Craig Plumb, Head of Research at JLL MENA.
