Cool market shadow now cast over Abu Dhabi

The long shadow of the economic downturn casts a cool hand over the once warm market of Abu Dhabi, as a new report suggests that sales & rents in the emirate are set to follow in Dubai’s footsteps.

Most of the bad news regarding real estate in the UAE has tended to be focused upon the performance of Dubai, whilst Abu Dhabi continued to warm itself with higher market performance.

The emirate has seen more stable times in the region compared to others. Dubai for example, at its peak, saw a massive workforce influx & construction projects were galactic in cost & ambition. Then in the market collapse the workforce exodus left Dubai a ghost of its former self.

A recent report by CB Richard Ellis indicates that current owners in Abu Dhabi are reluctant to move on prices whilst potential buyers are holding back for fear of further slips to market values, & landlords are facing the need to be more flexible on rents to retain and attract new tenants.

Now it seems properties for sale in Abu Dhabi will remain low for the rest of 2009, with the hope the market will stabilise in 2010.