JLL report shows growth in hospital, residential sectors
Based on the report, released at Cityscape Abu Dhabi, the first quarter of 2015 showed further growth in the residential rental and hospitality sectors while the residential sales, retail and office sectors remained stable. JLL expects a reduction in government spending this year following the decline in oil prices.
"In the first quarter of 2015, the Abu Dhabi real estate market experienced strong growth in the hospitality sector and further growth of residential rents balanced by further stabilization in the office, residential sales and retail sectors," David Dudley, regional director and head of Abu Dhabi office at JLL Middle East Northern Africa, said. "In contrast to the downward pressure we saw for the hospitality market in Dubai during the quarter, the Abu Dhabi hotel sector saw an increase in hotel ADRs for the first time since 2010 as demand outpaced supply expansion."
Although growth is projected to continue in 2015, it will progress at a slower rate.
"The growth in hospitality demand is largely driven by a range of ongoing government initiatives to grow tourism demand - including the expansion of Etihad Airways and the Airport, further enhancement of Abu Dhabi's leisure offering, and campaigns by the Abu Dhabi Tourism & Culture Authority to promote Abu Dhabi regionally and globally," Dudley said.