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Abu Dhabi
HOTEL
• Upcoming hotels: Jumeirah Al Wathba Desert Resort and Spa, Radisson Blu Hotel Abu Dhabi Corniche
OUTLOOK
• UAE GDP to expand 3.8% as various economic stimuli may start to impact the country’s vital sectors
• The capital's tourism and hospitality sector could see improved key performance indicators - on foot of new demand drivers
• Capital values and rents soften at a slower rate. Increasingly affordable rents and more competitive options for investors
• Rentals for prime office space expected to stabilise. Secondary locations to soften further
TOURISM
• Abu Dhabi confirmed to host Formula 1 finale which could attract fans from all over the world
• Asian Cup likely to attract football fans from across the region
INFRASTRUCTURE
• Inauguration of Madinat Zayed – Al Mifra Roads project
• Completion of Al Faya, Razeen, Al Quaa Road Development project
RETAIL
• Upcoming malls: Al Maryah Central, City Centre Masdar
• IMF estimated Abu Dhabi’s GDP to accelerate by 3.4% in line with the Minister of Economy 2019 forecast
• Further US Federal Reserve rate hikes are expected
ECONOMY
RESIDENTIAL240,000 units
OFFICE3.7 million sq m GLA
HOTEL28,000 keys
POPULATION ‘192,100,000 People
ValuStrat Price Index – VPI Abu Dhabi Residential Base: Q1 2016=100
All prices are quoted in UAE Dirhams unless otherwise stated
Sales and Rent performance are measured on a quarterly basis while hotel performance are on yearly basis
TOURISM
• Abu Dhabi named as the safest destination for travellers as per Destination Satisfaction Index (DSI) at ITB Berlin
HOTEL
• Abu Dhabi hotel guests surged 15.2%
• Pearl Rotana Capital Centre at Adnec was opened
INFRASTRUCTURE
• A traffic toll system in the capital city was announced by Department of Transportation
OFFICE
• Al Shafi Tower was opened
• With consolidation amongst government and major financial institutions, Grade A offices rent remained under pressure
RETAIL
• F&B component of Al Bahar Beachfront achieved 80% letting
• Majid Al Futtaim broke ground on City Centre Masdar
• Abu Dhabi Municipality and Bin Butti announced construction of two community markets
PROJECTS
• His Highness Shaikh Mohammad Bin Zayed Al Nahyan approved development of a new seaport, media production city and a creativity zone
• twofour54 announced a 300,000 sq m expansion plan
• Value Added Tax (VAT) capped at 5% officially took effect
• UAE Central Bank increased rates by another 0.25%
• 10% of a large offshore oilfield in Abu Dhabi was sold for AED 2.2 billion
• Abu Dhabi Development Holding Company (ADDHC) was created
• Indian Prime Minister Narendra Modi visited the UAE for the second time
ECONOMY
RESIDENTIAL
• Saadiyat Grove (JV between Aldar Properties and Emaar Properties) and Reflection in Al Reem were launched
INDUSTRIAL
• AED 220 million aluminium plant opened in Khalifa Industrial Zone Abu Dhabi (KIZAD)
• Gulf Printing and Packaging opened a facility in KIZAD
• KIZAD launched its first on-demand warehousing solutions
LEGAL
• Sheikh Khalifa Bin Zayed Al Nahyan approved a law for community development
• Aldar shareholders approved foreign ownership increase to 49%
-0.3%
RENT
-2.7%
RENT
0.0%
SALE
86
• CNBC opened its Middle East headquarters in Abu Dhabi Global Market (ADGM)
OFFICE
• A 3-year AED 50 billion economic stimulus was presented in the capital
• Standard and Poor’s (S&P) announced a stable outlook and affirmed Abu Dhabi’s rating
• Three-year economic stimulus to be absorbed by favourable oil price, as per Moody’s Investor Service
ECONOMY
MERGERS & ACQUISITIONS
• Aldar acquired AED 3.7 billion of real estate assets from Tourism Development and Investment Company (TDIC)
INDUSTRIAL
• ADNOC unveiled a AED 165 billion expansion plan in Ruwais complex
• Tristar Group opened a logistics facility at Industrial City of Abu Dhabi (ICAD)
RETAIL
• Foundation stone laid for Reem Mall, capital’s biggest retail project to date
• Majid Al Futtaim's My City Centre in Masdar City, broke ground
TOURISM
• World’s most expensive painting Salvator Mundi, was announced to make Louvre Abu Dhabi as its new home
• Abu Dhabi Executive Committee approved a move to reduce tourism and municipality fees
• Al Hudayriat Island Beach and Entertainment area was opened
HOTEL
• Grand Hyatt Abu Dhabi Western Corniche was opened
• Yas Viceroy announced rebranding to W Hotel under Marriott
• Airbnb to be legalised in the capital as per Department of Culture and Tourism Abu Dhabi (DCTAD)
INFRASTRUCTURE
• Abu Dhabi City Municipality (ADCM) and Musanada completed internal roads and infrastructure projects spanning 197,000 sq m
• AED 118 million project in District 25 at Al Maqta South completed
• ADCM completed street maintenance work in Al Mina and Abu Dhabi Corniche
TRANSPORTATION
• Careem announced economy service now available to Abu Dhabi City
• Halifat card service launched for Abu Dhabi regional buses
RESIDENTIAL
• Bloom Properties started hand over of 132 units at Faya community
• Abu Dhabi Executive Council announced its plan to increase municipality fee for expat rentals
• West Yas begun to welcome unit owners and residents
LEGAL
• Federal government approved 100% business ownership outside free zones and a new 10-year visa
CITYSCAPE
• This year’s exhibition played host to an AED 15 billion worth of real estate projects, including Al Ghadeer community
4.7%
RENT
-3.8%
RENT
-1.6%
SALE
84
• Chinese President Xi Jinping arrived in the capital for a three-day state visit
• Abu Dhabi Investment Office entered an agreement with the Chinese Business Council to promote co-operation between commercial sectors in both countries
• Abu Dhabi Crown Prince unveiled Tomorrow 2021 plan and increased government spending
• Dual licensing initiative launched by Abu Dhabi DED for free zone based companies
• US Fed Reserve raised interest rates by 25 basis points, UAE Central Bank followed suit. Borrowing costs increased accordingly
ECONOMY
TOURISM
• The world’s first indoor Warner Bros theme park opened
• Time Magazine’s World’s Greatest Places list included Louvre Abu Dhabi and Warner Bros theme park
INDUSTRIAL
• KIZAD launched new warehouses and light industrial units with sizes between 320 sq m to 1,148 sq m
RETAIL
• Al Maryah Central received a building completion certificate
• City Centre Al Jazira begun construction
• ADCM announced to build a 23,000 sq m retail centre in Mohammed Bin Zayed City
HOTEL
• Upscale hotels in the capital saw Average Daily Rates (ADR) fall below USD 100, as per EY data
INFRASTRUCTURE
• 50 years since Al Maqta bridge opened
• Construction of Al Faya, Razeen, and Al Quaa Road Development project reached 50% milestone
RESIDENTIAL
• Aldar launched Yas Acres project
• 1,969 apartments and 67 villas have been completed during the past nine months
• With the aim of boosting the economy, UAE government announced 10-year visa for investors and certain professionals as well as 100% foreign ownership of non-free zone establishments
• 5-year renewable residency visa announced for expat retirees. Subject to either AED 2m property, AED 1m savings or AED 20,000 income
GOVERNMENT
• Global money transfer company Cash Express opened a regional headquarter office at ADGM
• ADGM chosen by US financial services firm State Street to open its first office in the UAE
OFFICE
MERGERS & ACQUISITIONS
• Aldar Properties fully acquired Khidmah property services firm
-3.5%
RENT
-1.3%
RENT
0.7%
SALE
81
TRANSPORTATION
• Dar Al-Handasah announced by HyperloopTT as project design lead for Abu Dhabi’s first hyperloop system LEGAL
• New rental law promulgated to speed up dispute settlement between landlords and tenants
• S&P reaffirmed Abu Dhabi’s 'AA/A-1+' sovereign credit rating
• For the fourth time, US Fed Reserve increased interest rates by a quarter point with UAE Central Bank following suit. As a result, borrowing costs increased
ECONOMY
TOURISM
• Qasr Al Hosn was opened after a decade of restoration work
• Louvre Abu Dhabi reach a million visitors’ milestone
INDUSTRIAL
• Abu Dhabi Ports unveiled a new digital logistics platform
• 50,000 sq m central storage and logistics headquarters of Amana was built in KIZAD
RETAIL
• Aldar announced 90% occupancy across all of its retail assets
HOTEL
• Abu Dhabi National Hotels mulls buying five hospitality assets from Emaar which includes flagship hotels Address Dubai Mall and Address Boulevard
• Hotels gear up for expected visitors for Abu Dhabi Grand Prix
• New hotel classification announced by Department of Culture and Tourism Abu Dhabi
• Jumeirah at Saadiyat Island Resort, Abu Dhabi Edition in Al Bateen Marina and Andaz Capital Gate opened
RESIDENTIAL
• Imkan announced a plan to build Sahel Al Emarat, a residential project in Ghantoot
• AED 18.3 billion worth of housing loans and residential plots for Emirati beneficiaries announced
• Intertrust opened an office in ADGM
• Citi Group announced to open an office in ADGM
OFFICE
-2.7%
RENT*
* Estimated
-3.6%
RENT*
-6.3%
SALE*
80* Estimated
8.7%
OCCUPANCY
0.6%
AVERAGE DAILY RATE
6.4%
OCCUPANCY
-5.1%
AVERAGE DAILY RATE
-0.8%
OCCUPANCY*
-5.6%
AVERAGE DAILY RATE*
* Estimated
-5.7%
OCCUPANCY
-4.9%
AVERAGE DAILY RATE