year 3 per cent lower than Q3 2011. For developers, the next 12 months could be tough, but it’s a buyer’s


market. “Landlords are becoming increasingly flexible and realistic in their


approach to leasing, with rent free periods offered as standard market practice. For occupiers with strong covenants, extended rent free periods of up to eight months per five years of term can be secured as landlords try to limit their risk exposure by avoiding extended rental voids,” a CBRE commentator said in the report.


Modest decline Even the somewhat bleak market outlook from CBRE concedes that the


capital’s residential sector is only seeing modest price declines. “Te market appears a little steadier than at this time last year. However,


delivery delays during 2011 have arguably helped to alleviate the onset of more aggressive deflationary pressures, and with this in mind the outlook for the year is for further downside,” it said. On the main Abu Dhabi island, average residential rents fell by around 4


per cent over the previous quarter and 16 per cent year on year. For Abu Dhabi mainland, the decline was more pronounced with a quarterly decline of 5 per cent against a 30 per cent drop year on year. “With a considerable development pipeline looming for handover during 2012, we anticipate that rents will continue to fall, although the rate of decline is likely to be more moderate than in previous years,” the CBRE analysis stated.


Bright future A brief glimpse into the projects coming on line in 2012 is impressive. January saw a government announcement that work is set to resume on


the Abu Dhabi branches of the Louvre and Guggenheim museums after a “review of their viability.” Nation Towers is a US$436 million development from International


Capital Trading, on the Corniche, comprising two towers (one of 64 storeys, and one of 51) which include a five star hotel, loft apartments, office space, a retail area, recreational amenities and beach club. Nation Towers has incorporated sustainability features throughout the build concept. Aldar’s profits look set to continue with Central Market, its flagship


downtown three-tower development, which includes 76,500 square metres of retail space, 591 residential units, 72,000 square metres of office units, two hotels and leisure space. Te five Etihad Towers – on the map since 2006 – intend to “change the


skyline of Abu Dhabi forever.” Tis half a million square meter development, with towers ranging from 54 to 75 floors, is again mixed-use and offers a lifestyle that might just ensure residential property prices are on the up by year-end l


APRIL 2012 I CITYSCAPE I 29


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