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Lacklustre Response to Abu Dhabi Realty Show

A large number of visitors flocked to the Abu Dhabi National Exhibition Centre during the first two days of the show, which has attracted more than 100 companies from the UAE and 10 other countries from the Middle East and other regions.

Comparing it with two recently held realty shows, Hasan Kazmi, a visitng real estate investor said: “The Cityscape in Dubai, which took place just before the financial crisis hit the market last year, and Abu Dhabi’s Cityscape, which was held in May, received overwhelming response from investors.”

No new project was announced on the first day of the show by any of the developers participating in the three day-event, as has been expected keeping in view the slowing economy and tough conditions being introduced by financing institutions.

According to John Wigham, an environmental expert with Cracknell architects and consultants, the investor response is not overwhelming. He recalled that the Cityscape Abu Dhabi in May last year when thousands of investors scouted opportunities to book properties.

Wigham said it does not mean the opportunities to invest in Abu Dhabi are not attractive and people are not investing here, as there is considerable amount of interest in the capital city, especially by Europeans. The current rental yield at 11-15 per cent — which is expected to go up further with demand supply gap for housing increasing — makes Abu Dhabi a place to buy property at this time when prices are falling in the secondary market, he said.

Gurjit Singh, chief development officer at Sorouh Real Estate, said this event will help him analyse what is the market appetite and what products he must design for the future.

He said that since it is the first show after Cityscape 2008 Dubai, it also reflects how the economies have been affected by the global financial crisis.

“As an exhibitor, we are participating with tempered and open expectations… we want to inform our investors about the pace of projects they have invested in and know what they have to say,” Singh said.

According to Antoine Georges, Director of Dome Exhibitions, the show’s organiser, the strong presence of major property developers gives a strong push to the event and attracts many people wishing to get acquainted with the latest real estate developments or those who want to invest in this sector.

haseebhaider@khaleejtimes.com