While oceans of ink have been spilled in the analysis of Dubai's property woes, the real estate market in neighbouring Abu Dhabi continues falling back to earth, with commercial rental rates down by 45 per cent on their 2008 peak.
But that fall, outlined in a new report (PDF) by the property consultancy Cluttons, doesn't make Abu Dhabi anything close to a bargain destination for office space. As Cluttons point out:
One ongoing problem is that many landlords are still quoting Grade A rents for secondary grade stock. Abu Dhabi office supply has been artificially constrained in previous years and so some landlords have been slow to adjust their expectations in line with current market conditions. Tenants are expected to relocate to higher quality space at the same rent as the space they currently occupy.
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