As April begins, so does the countdown for Abu Dhabi Cityscape 2009. Just a few weeks separate Abu Dhabi’s real estate developers, investors and market players from the capital’s most prestigious property show. Usually, Cityscape is where developers launch their multi-billion dollar projects such as high-rise towers, mixed-use developments and even entire new cities. This year, however, the definition has changed. Instead of bragging about their new projects, developers have to prove their resilience in the face of current market conditions. Experts will also have to demonstrate their understanding of the current situation and prove Abu Dhabi’s strong position. On the other hand, investors and end-users will be watching to see whether Abu Dhabi still represents a good opportunity for investment.
Cityscape Abu Dhabi will take place in the Abu Dhabi National Exhibition Center April 19 to 23 and will include a series of conferences and summits, during which 101 key speakers will be discussing the most important challenges and issues facing the property market. Moreover, three post-conference workshops will take place on the last day of Cityscape. In the first workshop, Louise Sunshine, chairwoman and CEO of Domineum will be tackling the global property solution in the current challenging economy. In the second, Oscar Marquez, a real estate master trainer at the Leader’s Edge Training will be discussing new marketing strategies. The third conference will be lead by Matthia Gelber, who will confer about how companies can become green and make money out of it. Additionally, Middle East Real Estate Awards will be held on April 19 at the Emirates Palace in the presence of 500 industry leaders, where distinctive projects that combine architectural excellence with eco-friendly solutions will be awarded.
The optimistic view
Marquez, who remains very optimistic about the real estate market in the Middle East, says that Cityscape will give people a lot of hope.
“People think that this is the end of the world, while it is not. Many investors will become aware [during Cityscape] of the big opportunities that are right now in real estate,” he explains. Moreover, Marquez also thinks that at Cityscape, developers will make up their mind on how much prices have to be reduced in order to keep the economy moving forward. “It is just a matter of time before [developers] realize that they can’t make 100 percent profit,” he adds.
Other experts agree with Marquez, while saying that this year, the number of transactions that are going to take place will be minimal. Indeed, now more than ever investors are cautious about their investment decisions. They will likely consider Cityscape as a means to see how developers are progressing on their previously launched projects as well as the prices and payment plans that they are going to present.
Hussain Ali Al Shamkhani, chief investment officer at Escan Real Estate PJSC, says that Cityscape 2009 represents an opportunity for developers to show that they are still in the market and still going ahead. He explains that “developers should show the benefit of the demand-supply gap [in Abu Dhabi] and show people that instead of speculating, they can buy units and rent them out and make seven to eight percent return. [Developers] should sell that as the main benefit of buying a unit.”
Shamkhani also adds, “they need to emphasize and explain the potential of Abu Dhabi, how it is very different from Dubai and why it is much safer and more profitable. I think this should be the theme for the show and this is the best message to get across.”
IIR Middle East, the organizers of the event, introduced the first Cityscape Connect breakfast recently, where 150 real estate and property stakeholders met to increase confidence in Cityscape and the market in general. At the breakfast, Sami Eid, Aldar’s senior marketing manager, said “it’s one of the biggest events and we’ll be showcasing ourselves and showcasing Abu Dhabi… We won’t be unveiling anything new but it’s important to be out there and we’ll be showing all our projects.”
This statement is likely to apply to all developers who are considering Cityscape a chance to prove themselves as well positioned to face the current turmoil. Since early February, 95 percent of the exhibition stands were booked, Cityscape organizers asserted. They added that 40 percent more floor space has been sold than last year. Moreover, attendance is expected to increase up to 27 percent from 35,000 during Cityscape 2008.
Real estate stakeholders are looking forward to this year’s show, waiting to see what Abu Dhabi has to offer. Consequently, Cityscape 2009 has a hard task to meet, since it will have to prove that Abu Dhabi is still, despite the current market turbulence, one of the most attractive destinations for investment in the Middle East.
