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Rental
Growth
Slowing
Rental
Growth
Accelerating
Q1 2015
Rents
Falling
Rents
Bottoming
Out
Retail
Residential
Office
Rental
Growth
Slowing
Rents
Falling
Rental
Growth
Accelerating
Rents
Bottoming
Out
Hotel*
Hot Topic
Office Supply
Current Supply (20122015)
2.9M
sq m (GLA)
2012
3.0M
3.1M
sq m (GLA)
sq m (GLA)
2013
2014
3.2M
359K
sq m (GLA)
155K
sq m (GLA)
Q1 2015
sq m (GLA)
9M 2015
291K
sq m (GLA)
2016
2017
Office Performance
Vacancy Rate
39%
Q1 2014
25%
Q1 2015
Grade A
AED
Grade B
2015 / 2016
Outlook
1,540
1,730
12%
Q1 2014
Q1 2015
Y-o-Y
1,180
1,180
0%
Q1 2014
Q1 2015
2015 / 2016
Outlook
COPYRIGHT JONES LANG LASALLE IP, INC. 2015
Y-o-Y
Hot Topic
While sale prices in Dubai have declined, Abu Dhabis sale prices
for residential units (apartments and villas) remained stable
during Q1 at approximately AED16,000 per sq m.
Rents for prime 2 bedroom apartments continued to increase this
quarter given the limited supply in the market, registering a 4%
increase to reach approximately AED 163,000 p.a.
There remains a shortage of quality supply across all price points
and an acute shortage of affordable housing.
Residential Supply
Current Supply (20122015)
225K
236K
244K
244K
2012
2013
2014
Q1 2015
units
units
units
units
5K
units
5K
14K
units
9M 2015
units
2016
2017
Residential
ResidentialPerformance
Performance
Abu Dhabi Residential Property Rent and Sale Growth
Apartment
residential
Sales
Rentals
0%
4%
Villa
residential
Q-o-Q (2BR)
Sales
10%
Rentals
12%
Y-o-Y (2BR)
Sales
Rentals
0%
0%
Q-o-Q (3BR)
Sales
Rentals
15%
8%
Y-o-Y (3BR)
Hot Topic
Yas Mall completed its first full quarter of trading and has been
well received by consumers and retailers.
Gulf Related has announced that the main contract for Al Maryah
Central Mall will be awarded in May 2015 and that work will start in
August. Also in Q1, National Real Estate Company (NREC) has
appointed a consultancy team to manage the development of
Reem Mall on Reem Island. This mall is currently at concept
design stage, with construction expected to start this year.
Retail Supply
Current Supply (20122015)
1.9M
sq m (GLA)
2012
2.2M
sq m (GLA)
2013
2.5M
sq m (GLA)
2014
2.6M
87K
sq m (GLA)
85K
sq m (GLA)
9M 2015
Q1 2015
78K
sq m (GLA)
sq m (GLA)
2016
2017
Retail Performance
Vacancy Rate
2%
Q1 2014
2%
Q1 2015
AED
AD
Island
Off AD
Island
2015 / 2016
Outlook
3,000
3,000
0%
Q1 2014
Q1 2015
Y-o-Y
1,820
1,860
2%
Q1 2014
Q1 2015
Y-o-Y
2015 / 2016
Outlook
COPYRIGHT JONES LANG LASALLE IP, INC. 2015
Hot Topic
Hotel Supply
Current Supply (20122015)
2012
keys
2013
keys
keys
2014
Q1 2015
3,000
1,200
keys
1,300
keys
9M 2015
keys
2016
2017
Hotel Performance
Occupancy Rate
76%
YT Feb
2014
77%
YT Feb
2015
USD
2015 / 2016
Outlook
151
YT Feb
2014
169 12%
YT Feb
2015
2015 / 2016
Outlook
Y-o-Y
Completed residential building refers to a building that is handed over for immediate occupation. This data
excludes labour accommodation.
Residential performance data is based on asking prices from a basket of selected developments.
Office buildings are considered handed over once they are ready for tenant fit-outs.
Total supply excludes government owned and wholly occupied buildings (such as Abu Dhabi Municipality).
Average Grade A Office rents represent the average effective rents taken from a basket of selected buildings
defined as superior in the current market. It is an effective rent that accounts for rent free periods only (and
not the financial impact of any other tenant incentive/s) and excludes service charges and local taxes.
Vacancy rate is based on estimates from the JLL Agency team. It represents the average rate across all
buildings in the supply sheet.
Hotels are considered handed over once they are open and operational.
Hotel room supply is based on existing supply figures provided by ADTCA as well as future hotel development
data tracked by JLL Hotels. Room supply includes all graded supply and excludes serviced apartments.
Hotel performance data is based on a monthly survey conducted by STR Global on a sample of international
standard midscale upscale hotels.
Abu Dhabi
Abu Dhabi Trade Centre Building
7th Floor, Office No. 3
PO Box 36788
Tourist Club Area
Abu Dhabi, UAE
Tel: +971 2 443 7772
Fax: +971 2 443 7762
For questions and inquires about the Abu Dhabi real estate market, please contact:
David Dudley
Regional Director / Head of
Abu Dhabi Office
david.dudley@eu.jll.com
Peter Stebbings
Head of Valuation Advisory
Abu Dhabi
peter.stebbings@eu.jll.com
Chiheb Ben-Mahmoud
Head of Hotels & Hospitality
MEA
chiheb.ben-mahmoud@eu.jll.com
Andrew Williamson
Head of Retail
MENA
andrew.williamson@eu.jll.com
Craig Plumb
Head of Research
MENA
craig.plumb@eu.jll.com
Corinna Klaus
Senior Agent, Agency
Abu Dhabi
corinna.klaus@eu.jll.com
Andreas Skiadopoulos
Manager Strategic Consulting
Abu Dhabi
Andreas.skiadopoulos@eu.jll.com
Mai Hassan
Financial Analyst - Strategic Consulting
Abu Dhabi
mai.hassan@eu.jll.com
@JLLMENA
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COPYRIGHT JONES LANG LASALLE IP, INC. 2015
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