Following a modest recovery in 2021, the Abu Dhabi market is expected to see a steady 2022
Office Market
- Fitted offices will continue to drive office demand
- We foresee Al Reem Island to remain a popular destination for office occupiers, and we expect the submarkets of Khalifa Park, Capital Centre and Al Raha to see steady demand due to convenient access to residential areas and better parking amenities
- Grade A rents are expected to remain stable due to limited supply and Grade B rents to stabilise as most fitted spaces are absorbed.
- Rental levels in Grade C to see further downward movement as most occupiers have returned to the workplace
- Parking remains an issue and will be a key decision driver within the downtown area
Industrial Market
- Demand from E-commerce and manufacturing to continue underpinning warehousing demand in Abu Dhabi in the mid-term
- As supply becomes limited, upcoming areas such as Al Markaz and KIZAD (non-free zone), where new quality supply is expected to come to market, are expected to see most leasing activity
Residential Market
- Continued success for off-plan residential sales, especially in prime segments in Al Reem, Saadiyat and Yas Island
- Continued occupier preference for larger living spaces
- Al Reem Mall is expected to boost Al Reem Island apartment sales and the rental market
- Secondary market sales prices for villas to show marginal increases
- Handovers of apartments forecast over 2022 may result in slight downward pressure on rents
- Villa rentals are expected to remain stable
