• According to the Statistics Centre-Abu Dhabi (SCAD), inflation for Q1 2017 remained low at 2.2%.
  • Credit ratings agency Standard & Poor’s has forecasted that Abu Dhabi’s budget will return to a small surplus in 2017, after recording a deficit during 2016 amidst challenging economic conditions and low oil pricing.
  • Abu Dhabi has officially reinstated the rent cap system, although with the slowdown in the market and overall residential demand, the regulation is unlikely to have a significant impact in the short term.
  • Brent Crude Oil averaged around US$54/barrel during Q1 2017, up by 59% from the Q1 2016 average of US$34/barrel.
  • Prime offices registered average rentals of AED1,750/sqm/year, 5% lower than at the same point last year.  Secondary office rentals continued to slide, reaching AED AED935/sqm/year, translating into an 8% drop year-on-year.
  • According to figures from STR, the hospitality market has witnessed further declines across most performance metrics on a year-to-date basis, with occupancy rates down 4.3% year-on-year, ADR’s down 4.4% and RevPAR down 8.4%.