Developers confirm Cityscape attendance despite market uncertainty

The Cityscape show, scheduled for April, has suffered from rumours of low uptake from Abu Dhabi's real estate community as the main players have waited to evaluate the fall-out from the financial upheaval sweeping world markets.

However, the show's organisers have released the list of the 2009 edition's sponsors, with all of the major developers and investment companies backing the event. Aldar, Sorouh, Al Qudra, Burooj, Tameer and The Land Real Estate, are all primary sponsors, with Mubadala Real Estate as the headline backer.

Cityscape has also launched a series of networking not-for-profit 'connect business breakfasts' in the run up to the opening of the exhibition, featuring industry speakers and inviting interested parties to join, in order to instil confidence in the show.

'The global economic crisis has cast a shadow over the real estate industry, changing market dynamics and growth prospects,' Managing Director Rohan Marwaha told attendees at the first show.

Marwaha went on to dismiss what he referred to as 'rumour and speculation' surrounding the event, saying that floor space had grown 30%, while advance visitor registration had grown by 48%.

'It's one of the biggest events and we'll be showcasing ourselves and showcasing Abu Dhabi,' said Aldar's senior marketing manager, Sami Eid. 'We won't be unveiling anything new but it's important to be out there and we'll be showing all our projects.'

Shift in focus

The predicted attendance figures will serve to cheer a sector that has been left reeling by the speed with which the financial crisis has hit a market that had seemed unaffected, as prices began to tumble in Dubai.

A report by Landmark Advisory has found that property prices in Abu Dhabi have fallen as much as 20% since Q3 2008 and are likely to fall further. Properties scheduled for delivery post-2011 are predicted to fall up to 10% below original prices by the end of Q2 2009.

Ahmed Al Sayegh, chairman of Aldar Properties told the company's shareholders at the company's annual general meeting this week that the group would have to shift its focus and adapt to the new economic environment in order to prosper.

Al Sayegh also confirmed that the developer was reviewing its business strategy across the board and renegotiating contractor agreements, although he added that the group expected to continue to be profitable. 'It's going to be a tough year, for everybody', he told attendees.

Part of the shift in focus involves altering current developments to allow for a mix of affordable housing, in line with government initiatives, and also a stronger focus on the rental market. Similar strategies were announced by Sorouh earlier in the year, when chief property officer Gurjit Singh told AME Info that the group would be looking at developing recurrent income properties, in order to underscore future financial stability.

See also:
Sorouh unveils new personal financing schemes
Aldar confirms affordable housing plans