Abu Dhabi Q1 2009 Market Review
Despite current economic challenges, Abu Dhabi continues to perform, mainly due to undersupply of accommodation across all sectors.
While a small number of developments have been delayed, the Emirate continues to demonstrate commitment to large-scale projects such as Sa'adiyat Island, Al Sowwah, Reem Island and Yas Island along with Masdar (the new sustainable city development).
Construction costs down 30% over last quarter - welcome news to developers as they push towards affordable housing units (meaning: middle income housing) whereby any drop in costs improve profit margin.
Good occupier demand will ensure that prices remain relatively stable in the face of current economic crisis.
Positive indicators include tourism numbers, relaxation in bank lending criteria for residential and off-plan sales and minor price corrections.
