Real Estate & Construction
From The Report: Abu Dhabi 2017
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Abu Dhabi’s office, residential and retail markets, long buoyed by undersupply, now face the opposite challenge, with a host of large-scale new completions coming on-line in recent years. This weighed heavily on sales prices and rental rates in 2016, although bright spots remain in the mid-market residential segment, as well as in prime up-and-coming neighbourhoods and commercial districts. In addition renewed demand for more affordable housing in Abu Dhabi has strained rents in the high-end residential sector with developers now shifting their strategies to include new mid-market developments. This has enabled double-digit returns on rental yields for some, making the mid-market segment a bright spot in an otherwise subdued residential market.

This chapter contains an interview with Mohamed Khalifa Al Mubarak, CEO, Aldar.

Articles from this Chapter

Overview

Strength in depth: Reforms and a healthy project pipeline promise much after slowdown in 2016
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Although it has risen to become a strong contributor to GDP and diversification over the past 15 years, Abu Dhabi’s real estate sector is feeling the pressures of an economic slowdown, brought on by a period of depressed oil prices and spending cuts that have affected markets across every property segment. The office, residential and retail markets, long buoyed by undersupply, now face the opposite challenge, with a host of large-scale new completions coming on-line in recent years. This…

Interview

Moving in: Mohamed Khalifa Al Mubarak, CEO, Aldar, on Abu Dhabi’s resilience in a challenging market
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Interview: Mohamed Khalifa Al Mubarak How can developers weather the cyclical slowdowns in real estate markets? MOHAMED KHALIFA AL MUBARAK: Keeping abreast of changing market dynamics is essential for any developer, especially during times of slowing activity. Having a deep knowledge of customers and their aspirations also helps in identifying the right properties to sell to the right people at the right stage of the industry cycle. Over the years we have remained nimble enough to tailor our real…

Analysis

In the mix: Al Maryah Island is the focus of new retail, residential and financial services developments
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As Abu Dhabi accelerates efforts to diversify its economy away from a reliance on hydrocarbons, development of Al Maryah Island has become a top priority for real estate and construction. An international financial free zone and mixed-use real estate development, the island is expected to become a major financial and business district, supported by retail development Al Maryah Central, as well as high-end residential and commercial projects. Although a subdued macroeconomic climate has delayed…

Analysis

Cost conscious: New strategies are required to adapt to changing demand patterns
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Renewed demand for more affordable housing in Abu Dhabi has come about as a downward readjustment of housing allowances has strained rents in the high-end residential sector. Developers are now shifting their strategies to include new mid-market developments. This has enabled double-digit returns on rental yields for some, making the mid-market segment a bright spot in an otherwise subdued residential market. Incentives Stakeholders report that landlords are increasingly aware of the challenges,…

Overview

Building momentum: A strong pipeline of projects bodes well
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In 2017 Abu Dhabi’s construction sector should begin recovering after global oil prices reached their pain point in 2016, ending the year two-thirds higher than in January following a landmark OPEC deal. Stabilising oil prices allowed the government to reduce spending cuts, and the industry’s long-term outlook remains positive since the Abu Dhabi Executive Council and the Abu Dhabi Urban Planning Council (UPC) approved dozens of new public works, real estate projects and neighbourhood…