Abu Dhabi’s new project pipeline remains firmly in the hands of its government owned or supported developers, with private sector names keeping to the sidelines or coming out with the occasional foray.
And by the looks of it, the situation is likely to remain so.
In the last 12 months, there have been well phased out off-plan launches from Aldar and also by the master-developer in Saadiyat, and which were able to find buyers relatively quickly. But that was about the sum total of off-plan activity in the emirate and at odds with the bullish sentiments developers had shown during Cityscape Abu Dhabi 2014. (The sentiments developers are nursing now could be gleaned from this year’s edition of Cityscape Abu Dhabi, which opens on Tuesday.)
The way oil prices have behaved could explain some of the souring in private developers’ appetite for new.
“It would have been pretty quiet it had not been for the quasi-government entities,” said Matthew Green, regional Head of Research and Consultancy at CBRE. “There’s still good end-user residential demand, but what remains absent is the kind of outside investor driven development activity that had stabilised Dubai’s property market in recent years.” More info