By Himendra Mohan Kumar, Staff Reporter www.gulfnews.com
Abu Dhabi: Abu Dhabi’s property market is likely to remain sluggish through the initial months of the new year due to suppressed demand coinciding with increasing supply.
“Demand has been reduced due to the government cutting back spending on infrastructure investment and economic development initiatives, combined with slowing global economic activity,” David Dudley, regional director for Jones Lang LaSalle, the real estate services firm, said.
“At the same time, projects that had started construction during the boom years are reaching completion, resulting in an increase in vacancy rates and, consequently, a reduction in rents.
“The current situation will continue into 2012 but, fortunately, this will be a short-term issue with market dynamics picking up again thereafter. Abu Dhabi’s real estate market continues to have a very bright future as government spending ramps up again and the newly delivered supply gets absorbed by tenants upgrading and expanding. There has already been major progress in the delivery of Vision 2030.” More info