Lean mean market in Abu Dhabi
Of all real estate in the UAE, that of Abu Dhabi has always appeared to strike a healthy balance between supply and demand, and recent interest rate cuts are likely to push demand higher.
According to Landmark Advisory, the market has reached a standstill as projects have been stepped back due to financial strains, whereas demand is moving up especially on close to completed developments. With property in Dubai losing favour over concerns regarding the financial stability of the emirate, Abu Dhabi is looking more like a safer bet.
Although demand may be on the up, Landmark aren’t anticipating a mass of sales activity in the short term despite the mass of nearly finished projects. Delayed hand-over dates are denting some investor confidence and many are waiting for some projects to become distressed as their largest and final payments become due.
With around 80% of investors purchasing properties for sale in Abu Dhabi with finance, current interest rates and poor supply is likely to keep real estate in Abu Dhabi in a competitive state.