15 / 18
15
Week 4 - December 2015
Mazaya Monthly Real Estate Report
Residential real estate in Abu Dhabi is seeing the
fastest growth, highest demand and returns
The real estate sector in Abu Dhabi has
been one of the most appealing sectors
for investors, individuals, institutions
and governments alike in recent years.
This has largely been driven by a
combination of high returns and low risks.
However, previous experience in the
UAE’s largest emirate has shown
that the value of real estate is not
dependent solely on supply and demand
constraints; it is also influenced by
many other factors – particularly the
high demand from all segments of real
estate products during both upturns and
downturns in the market. In addition,
there has been a conspicuous lack of an
approved benchmarks or indicators that
help to control the rise and fall of prices.
Therefore, the value of many transactions
is determined by the evaluation andwhims
of owners and by the tactics of brokers.
The real estate market in the emirate
does, however, remain attractive
to domestic as well as foreign
investors. Regulators are seeking
more effective restrictions, measures,
improvements and modifications to
the applicable mechanisms so as
to provide increased transparency
to the markets and include further
elements of strength and stability.