Construction & Real Estate
From The Report: Abu Dhabi 2019
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Although it has become a strong contributor to economic diversification, Abu Dhabi’s real estate sector is being put under pressure by slower growth, brought on by low global oil prices that started in 2014. Spending cuts since 2015 have been reflected in capital value, with rental rates declining to their lowest levels since 2013. However, the slowdown has masked encouraging developments in the sector, with a series of Abu Dhabi government reforms unveiled in 2015 with a view on protecting against the emergence of another property bubble. Private developers are becoming more responsive to market demand with regard to product offering, and have begun exploring alternative projects, such as real estate investment trusts and joint ventures. This chapter contains interviews with Talal Al Dhiyebi, CEO, Aldar; and Falah Al Ahbabi, Chairman, Department of Urban Planning and Municipalities.

Articles from this Chapter

Overview

Rebuilding momentum: Regulatory reforms and broader product offerings are expected to support market recovery
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Although it has become a strong contributor to economic diversification, Abu Dhabi’s real estate sector is being put under pressure by slower growth, brought on by the period of low global oil prices that started in 2014. Public and private sector spending cuts since 2015 have been reflected in capital value, with rental rates declining to their lowest levels since 2013, the year real estate prices began to recover from a speculation-driven market crash following the global financial crisis…

Interview

Creating the market: Talal Al Dhiyebi, CEO, Aldar, on the importance of sustainability and affordable housing
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Interview:Talal Al Dhiyebi What opportunities will be unlocked by the joint venture between Aldar and Emaar? TALAL AL DHIYEBI: Our partnership allows us to diversify our location and product portfolio with unique projects in both Abu Dhabi and Dubai. We are proactive in understanding our customers and the trends that drive their consumption, which in turn helps us to better define the products that we offer. There are pockets of demand for different types of products and detailed analysis…

Analysis

Stronger together: Turning to joint venture deals to shore up the broader real estate market
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The March 2018 announcement of a Dh30bn ($8.1bn) joint venture (JV) between Dubai-based Emaar Properties and Abu Dhabi’s Aldar Properties has created a wave of interest in the potential of such arrangements for the broader real estate sector. While the Emaar-Aldar agreement is unique in its size and scope, Abu Dhabi has seen an uptick in the number of local entities jointly developing property or seeking partners since 2017. A New Trend The recent economic climate in Abu Dhabi, with firms…

Analysis

Going global: Public and private sector actors look internationally for a fresh wave of investment
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With real estate a key source of foreign investment, Abu Dhabi’s government has been gradually easing restrictions on foreign ownership to sustain market growth. This imperative has taken on added importance since the drop in global oil prices beginning in late 2014, leading to new public and private initiatives to draw in further overseas investment. Market Opening Whereas Dubai first opened its real estate sector to foreigners in 1997, it was not until the passage of Law No. 19 of 2005…

Interview

Seeing the whole picture: Falah Al Ahbabi, Chairman, Department of Urban Planning and Municipalities (DPM), on innovative approaches to growth
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Interview:Falah Al Ahbabi In response to increasingly challenging market conditions, how is the DPM approaching the rationalisation of ongoing property development? FALAH AL AHBABI: Economic growth, record tourism numbers and a level of government support keep the property sector’s medium- to long-term prospects very strong. The DPM regulates and facilitates strategic investment by diversifying investments, subjecting proposals to rigorous assessment and prioritising projects that are based…

Analysis

Pipeline projects: Ambitious medium- and long-term development plans are set to boost the industry
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Activity in Abu Dhabi’s construction sector contracted for the second year in a row in 2017 as the effects of the oil price drop beginning in 2014 were reflected in a narrower project pipeline. With major transport and energy projects approaching completion, the period of reduced investment across the wider UAE could continue to present challenges to contractors in the short term. However, several major large-scale developments are in the planning stage, and industry actors remain hopeful…

Overview

Sustainable urbanisation: As urban populations undergo rapid growth around the globe, planners are striving to create efficient spaces
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In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation about this trend is the speed at which it has happened: as recently as 1900 urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN estimates that by 2030 urban areas will host 60% of the world’s population – up from 54.5% in 2016 – with the pace of urban growth especially rapid across Africa and parts of Asia. Urban areas are home to more than 470m people in Africa, accounting for 40% of the continent’s population,…

Overview

Sustainable urbanisation: As urban populations undergo rapid growth around the globe, planners are striving to create efficient spaces
OBG
plus

In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation about this trend is the speed at which it has happened: as recently as 1900 urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN estimates that by 2030 urban areas will host 60% of the world’s population – up from 54.5% in 2016 – with the pace of urban growth especially rapid across Africa and parts of Asia. Urban areas are home to more than 470m people in Africa, accounting for 40% of the continent’s population,…