Abu Dhabi Residential Demand Strong

According to EFG-Hermes, an Egypt based investment bank, the demand for residential accommodation in Abu Dhabi continues to remain high and strong. This strong growth is due to the high demand because of the liberalization and growing population. Abu Dhabi real estate sector is expected to keep prices high for next five to seven years. Reports have said that this hike in demand in property in Abu Dhabi is backed by the shortage of all property types. Sana Kapadia, the author of the report said: “A structural shortage of good quality space across the various types of real estate combined with both pent-up demand and strong immigration growth prospects underpin the supply and demand dynamics of the emirate's real estate market.”

The residential market demand is expected to remain undersupplied until late 2009 as no major additions in residential units are expected before that. Moreover, the demand for not only residential units, but even for office space is expected to remain sturdy due to the vacancy rates. The quality of existing space is poor thus; the demand is rapidly increasing for both residential and commercial spaces. Apart from this older businesses are now looking forward to upgrade their facilities as they are seeking presence in the Middle East.

Significantly supply rising are expected to help rising prices and rents. This property demand hike is shown due to many reasons as a recent phenomenon is showing that malls are the recent updations in Abu Dhabi and fast growing young population along with rising income levels. Most of the projects which are currently developed or are under construction phase are multi-use and such retail space is expected to increase further.