Dubai, UAE: Abu Dhabi’s economy continues to strengthen with GDP growing by 5.7% in the year to Q1 2019, the strongest rate of growth registered since Q4 2015.
Headline growth has been driven only by the oil sector, which grew by 12.8% in the year to Q1 2019, whereas the non-oil sector has witnessed a 0.9% contraction over the same period.
Despite these relatively positive numbers Abu Dhabi’s economy, and indeed the wider UAE and global economy, are facing strengthening economic headwinds.
Matthew Dadd, Partner at Knight Frank Middle East, Occupier Services and Commercial Agency said, “Given a weak backdrop, Abu Dhabi’s office market is balanced in the favour of occupiers. As a result, landlords are willing to remain flexible in order to retain occupiers, alongside other incentives in the case of attracting new occupiers.”
Key findings
- Abu Dhabi’s economy continues to strengthen with GDP growing by 5.7% in the year to Q1 2019, the strongest rate of growth registered since Q4 2015.
- In the year to Q3 2019, average rents in Abu Dhabi have seen declines of 9.1%.
- The Grade A office market saw rents decline by 4.4% on average in the year to Q3 2019, Grade A average rents in Q3 2019 were recorded at AED 1,290 (sqm/p.a).
- Prime rents registered at AED 1,535 (sqm/p.a.), an 11.0% decline when compared to the same quarter a year earlier.
- Take up remains subdued across the market, however Abu Dhabi Global Market remains the location of choice in attracting new global corporate occupiers.
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