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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

VPIValuStrat Price Index