(MENAFN - The Peninsula) Abu Dhabi's residential real estate market rebounded strongly last year from a slump, helped by government intervention, a report by a real estate advisory firm said yesterday.
Prime residential sales prices jumped 25 percent in 2014, with an increase of six percent in the fourth quarter alone, Jones Lang LaSalle said.
Rents in prime residential projects increased 17 percent, with a rise of eight percent in the fourth quarter, driven partly by the creation of new jobs in Abu Dhabi and the removal of a five percent cap on rent rises, it said.
Abu Dhabi's real estate market slumped about 50 percent from its peak in 2008 after the global financial crisis triggered a crash. The Jones Lang LaSalle reports suggests Abu Dhabi may now be recovering roughly as fast as neighbouring Dubai.
The capital of the United Arab Emirates has been making attempts to boost its residential market through new rules for the last couple of years.
In 2012, Abu Dhabi pressed public sector employees who reside outside the emirate to relocate within its borders, which analysts said aimed to address heavy oversupply in its real estate market. Many employees commuted daily from Dubai.
Last November, Abu Dhabi scrapped a five percent cap on annual rent increases. The cap had been imposed in January 2008 after surging demand drove rents and inflation higher.
"A sustainable recovery is dependent on the government continuing to implement further supply controls to ensure a balanced real estate market going forward," said David Dudley, regional director and head of the Abu Dhabi office of Jones Lang LaSalle.
Kuwait works to get two refineries back to full flow
KUWAIT: Kuwait hopes to get its Mina Abdullah oil refinery back to full production today but the Shuaiba refinery is expected to take longer to return to normal after a power cut last week, the operator said yesterday.
The 270,000-barrels per day (bpd) Mina Abdullah refinery was running at about 60 percent of capacity yesterday, a spokesman for state-run Kuwait National Petroleum Company (KNPC) said.
The 200,000-bpd Shuaiba refinery was running at just over 70 percent of capacity on Sunday. But it will take longer to return to full output because Shuaiba is an old plant, he said.
The Opec member state has been using fuels held in storage to maintain exports while the three refineries that were shut down by the power fault return to full flow.
The January 22 power outage shut down all three of Kuwait's refineries. KNPC returned the 460,000 bpd Mina Ahmadi refinery back to full production early on Friday.