New Abu Dhabi Real Estate Law - A positive step forward in 2016

11^th February 2016

Abu Dhabi UAE: Knight Frank

Abu Dhabi's new real estate law should provide a stronger foundation for inward investment which in the long term should benefit the choice and competiveness in the occupational market. However, in the short term, regional unrest and global economic headwinds have reduced interest and take up from international companies looking to locate in Abu Dhabi. In the last half of 2015, subsequently with the oil price affecting market sentiment, Knight Frank witnessed a slowdown in the number of office enquiries. Engineering and Construction continued to be the most active sectors in the number of enquires, which reflects the recent growth in the number of infrastructure and real estate projects under progress.

In the H2 2015 Knight Frank Abu Dhabi Office Research report, it is reported that grade A and prime supply remain subdued with the possibility of some new developments under construction being further delayed in completion. Prime office rents remained steady to AED 1,900 per sq m, whilst rental values for Grade A shell and core office space remained steady at AED 1,300 per sq m. Buildings which do not meet occupier's exact requirements in terms of specification, parking, access and egress will face continued voids as occupiers that do relocate will be reviewing the market more carefully.

Matthew Dadd, Partner at Knight Frank, notes, ''With economic growth expected to slow and UAE inflation expected to fall in 2016 from 4.0% (f) in 2015 to 3.5% (f) in 2016, the outlook for the UAE still remains positive. However, demand from occupiers is expected to remain low with take up for smaller requirements. There is however, limited supply entering the market, which will mean landlords will not witness a jump in availability across the market''. 

-Ends-

For more information on the Abu Dhabi office market please view the full report here - bit.ly/1UZKHCe

To view the synopsis video, please click here - http://bit.ly/1V038H2

For further information, please contact:
Nicola Milton, Head of Marketing & PR, Knight Frank, +971 56 6116 368, Nicola.milton@me.knightfrank.com
Farah Elodat, Marketing & PR Assistant, Knight Frank, +971 56 420 2313, Farah.Elodat@me.knightfrank.com

Knight Frank has a strong presence in the Middle East with offices in Abu Dhabi, Dubai, Bahrain and Saudi Arabia. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and together with its New York-based global alliance partner, Newmark Grubb Knight Frank, operate from over 417 offices, in 58 countries, across six continents and has over 13,000 employees. For further information about the Company, please visit www.knightfrank.com or www.knightfrank.ae

© Press Release 2016