The recent Jones Lang LaSalle third quarter 2012 Market Overview Reports for Dubai and Abu Dhabi revealed that Dubai was ahead of the curve boosting business confidence in the region. This is primarily due to strong growth in segments such as tourism, commerce, retail, hospitality and logistics. Abu Dhabi though on the other hand is picking up.
Real estate which is primarily residential, retail or hospitality is witnessing growth within the Emirate. The hotel sector has witnessed strong performance in Q3 with occupancy levels improving to 77% from 74% as compared to 2011. This growth has been mainly driven by increase in tourist arrivals.
Commenting Alan Robertson, CEO of Jones Lang LaSalle, Middle East & North Africa, said: “Market sentiment is definitely improving and both Dubai and Abu Dhabi remain major drivers in regional real estate market, but we are continuing to move away from one holistic model. On the investment and development fronts, we expect to see more major deals announced in the weeks and months ahead, reflecting the improved economic climate. However we also expect the market to move away from a construction led environment to one more focussed on asset management as owners look to safeguard their investment and drive rental growth.”
For the Emirate of Abu Dhabi, completions were limited in Q3 2012. No additional retail malls were completed in Q3, with the opening of several centres delayed until H1 2013. Further there has been no new supply entered the hotel market in Q3 2012, but a number of major hotels are anticipated for delivery in Q4 2012.