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Al-Mazaya report also refers to the real-estate
market in Abu Dhabi following the same
pattern recorded at the Qatari real-estate
market in terms of the trends and negative
impacts. Abu Dhabi, reacted less severely to
the overall economic activity, since real-estate
activities are better regulated here, not to
mention that the current mature stages, while
are not yet causing a real-estate bubble, are
still considered as chaotic. Abu Dhabi Real-
estate market has witnessed great leaps
during the past few years increasing by 200%
on several real-estate products and locations
which took place post to canceling the 5%
maximum annual increase. Abu Dhabi real-
estate market still lacks the supplementary
long-term procedures and regulations
necessary to overcome challenges related
to the increase on lease rates and lack
of supply occurring every now and then,
causing more deviations and distortions
to the market. It is equally worthy to define
official price trends to assign upper and lower
lease rates at each location. It is further
required to arrive at permanent and final
remedies to the un-orderly dealers market
from which lease markets in Abu Dhabi has
long suffered and still continues to do so.
Al-Mazaya report states the current prices
available on land and real-estate in the
region exceed the actual values and the
anticipated increase trends that should
correspond to the economic momentum
as well as to the actual demand, while
government resolutions issued in this
regard are being misused. The report
adds that regarding the increasing inflation
rates, which may not be responsible for
causing these leaps in the market, nor
making such increase a non-changing
fact, regardless of the prevailing financial
and economic conditions. The liquidity
available to the real-estate market of the
region requires additional regulations to
better control the land and real-estate
prices. Moreover, it is further beneficial
to expand the range of investment
opportunities available to individuals and
SME’s currently considered as limited in
the real-estate and financial markets; a
stepwhich opens the door widely to register
additional bargaining and development
transactions yet without impacting
positive or added economic values.
Nevertheless, investment in production
sectors across the region indicate
stability, growth and returning trends
given the direct correlation with actual
production and long terms investments.
Mazaya Monthly Real Estate Report -
Week 3 - APRIL 2015
12