Abu dhabi office market resilient to falling oil prices

Abu Dhabi's real estate may be impacted by the continuing fall in oil prices, but despite the value dropping from $108 per barrel in June 2014 to under $50 per barrel in January 2015, Abu Dhabi's office market remains resilient, says Knight Frank.

The region’s medium to long-term prospects "remain strong", according to the agent, while office supply remains limited, which has caused vacancy rates to drop.

Knight Frank reports a "marginal slowdown" in enquiries in the second half of last year, which it possibly attributes to the fall in oil prices, but says that the overall effect on market rents over 2014 was "minimal".

Take up during 2014 was still dominated by the oil and gas sectors, followed by the government sectors, but demand from the Leisure and Hospitality sector increased.