Commercial Properties in Abu Dhabi
Abu Dhabi has largest land area and ranked on second position in terms of asset development and growth in other business sectors. Real estate market of this emirate has great potential and considered as one of the promising and fast paced market after real estate market of Dubai. Asset market of this emirate displays good growth in residential, commercial and industrial sectors. As it is the home for federal capital of UAE and housed government offices, it has been showing surprisingly high progress rate in commercial estate market since 1978. In early 1980s office space supply doubles whereas in 2000 this supply has increased to 50%. Such a high growth rate of commercial developments dedicated total 460,000 square meter gross floor area for office buildings.
The Abu Dhabi commercial property market has been showing much high growth rate for last six and seven years. Dubai’s fast growth rate in construction and development sector has provoked awareness in other emirates to shift their economy on business, trade and service industries making their future more secure. Due to same reason state government of this emirate started working on proper strategy in collaboration with developers to initiate building and construction projects. Builders focus to develop commercial centers that provide business and trade facilities. The main reasons behind taking such steps are diversification of economy and reduction of emirate’s dependency on energy and oil resources to earn major revenues. As commercial real estate market of this emirate is still on its initial growth rate, it is less affected with global financial crisis as compared to Dubai commercial real estate.
State government has constructed various commercial estate projects on the main island and new construction projects are launched on sites like Reem Island and Al Raha Beach. The Abu Dhabi commercial properties offer equal benefits for local and foreign investors. The commercial asset market of this emirate has great potential that allows investors to earn good profits whether they are leasing or selling their assets. The fast growth rate and flexibility to buy commercial asset in tax free environment has attracted foreign investors to make huge investments in commercial development projects. A significant rise in prices has observed since the state government allowed foreign investors to participate in real estate market of Abu Dhabi in year 2005. It has also increased commercial asset and for sale land demand among investors across the world. This high demand among foreign investors also put extra burden on developers and constructors to build more retail and business centers with high quality.