By: Ramy Sameeh
Abu Dhabi – Mubasher: The real estate market in the emirate of Abu Dhabi suffers from a supply-and-demand imbalance, said the head of the Department of Economic Development (DED) in Abu Dhabi Ali Majid Al Mansouri on Sunday.
The emirate is currently examining several innovative solutions that aim to overcome this imbalance, the top official told reporters on the sidelines of the Abu Dhabi Business Forum (ADFB).
"We are examining the emirate's property sector and there are statistics that confirm that supply exceeds demand and that there is an increase in leasing prices," he revealed.
In its most recent report, JLL said that the Abu Dhabi market witnessed general stability in the first quarter of the year despite the continued pressure of lower oil prices and the government reducing its domestic spending.
Contracts, whether residential, commercial or for offices, should be long term, spanning at least five years, Al Mansouri added, noting that long-term contracts ensure that tenants don't leave and that prices aren't raised.
Analysts expect Abu Dhabi's property sector to continue growing, especially after the reinforcing of a new law early next year which regulates transparency and enhances it as well as requires brokers and developers to get licences. The new law is among the regulations for protecting buyers' rights.
Translated by: Nada Adel Sobhi
