A With an oversupply of commercial property in the capital, companies such as Turner & Townsend are making it their business to find new offices for other firms. Joanne Stephens, a director of Turner & Townsend in Abu Dhabi, which supports organisations that invest in, own and operate assets, speaks about the state of the market.
What is the commercial property market like in Abu Dhabi just now?
Abu Dhabi is a unique market. In terms of commercial real estate, it is about getting the right quality for educated and sophisticated clients. It did lack that previously, but there are some very good recently completed developments, which clients are really enjoying moving into. There are some really good [developments such as] Sowwah Island and Etihad Towers.
But some property analysts, including Jones Lang LaSalle, say there are now too many offices in the capital.
There is an oversupply. I would say rents will become stabilised and regulations will come into play. But it also means the new-build market is not required at the moment until those office spaces are developed.
Turner & Townsend has just moved into a bigger office itself. Why?
To expand. [In] our previous office we didn't have the facilities that we have here. We felt we needed investment in good meeting facilities, reception areas to show the clients that we are serious and settled here for a number of years, so we can be a good stable resource for them.
What kind of projects has the company been involved in here?
We are in the last stages of completing the British School, Al Khubeirat. We're working in the Masdar area. We have done a lot of work with TDIC [Tourism Development and Investment Company] along Yas Island.
So Turner & Townsend must have been worried until the Government released revised timetables for the museums on Yas.
Yes, and we have asked the question "how real is that investment?" and the answer is the money is starting to come through. I was at a Cityscape connect conference last Monday and it was a positive conference, but the conclusion was still it's a very difficult market and the investment is going to be key in moving it forward, as any city is at the moment.
What is difficult about it?
Investment, oversupply of hotel rooms, oversupply of commercial space - perhaps not as much oversupply in residential - but that will catch up over the next two years.
What is business like in Dubai?
We're talking to a lot of clients that are relocating to new office space either in the DIFC [Dubai International Financial Centre] or within the quality offices there. In terms of other sectors, the malls are expanding, which is something that is great for the economy, which also gives a bit more confidence in the region. Hotels are being refurbished because they have come round that cycle. So I think the market in Dubai has matured; it's settled.
* Gillian Duncan
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