Wouter Molman, the director of Cityscape Group and organisers of Cityscape Abu Dhabi, speaks to The National ahead of Cityscape Abu Dhabi, which starts April 21.
How many exhibitors have signed up for the show this year?
This year we are expecting more than 130 companies to exhibit at Cityscape Abu Dhabi 2015, which represents a total growth in exhibition space of roughly 15 per cent. All of Abu Dhabi’s key real estate companies will once again come out in full force. In addition to developers and banks including Aldar, Mubadala, Al Qudra, Manazel, Wahat Al Zaweya, Eshraq, National Bank of Abu Dhabi and Masdar, the event will also see new participants such as Eagle Hills, as well as returning companies including TDIC, Al Forsan and Reem Developers. Of course Abu Dhabi’s Urban Planning Council will also be present again to update the public on the latest progress made with Vision 2030. Participation from Turkey and Jordan is set to grow significantly as well.
How many signed up last year?
The event turned a corner in 2014 following several challenging years since 2009, when it grew 15 per cent by welcoming 120 exhibitors.
How does this compare with 2008 and 2009?
In line with the market, the event declined substantially between 2009 and 2011. Even though the event has witnessed a strong double-digit recovery this year and last year, the show is still smaller than its peak in 2008.
How much space (in square metres) will be taken up this year?
Reflecting the stable growth currently being witnessed in the marketplace, the ninth Cityscape Abu Dhabi is set to show a double-digit increase across over 19,000 sq metres of exhibition space, resulting in us reserving an additional hall at Abu Dhabi National Exhibition Centre (Adnec). The whole event will span five exhibition halls this year, including halls four to seven and the atrium. In addition to the exhibition, Cityscape Abu Dhabi will also be hosting the Abu Dhabi Market Overview and Luncheon again which, in conjunction with JLL, will draw attention to the emirate’s latest projects and initiatives including the anticipated new real estate regulations. The main focus of this forum will be on supporting differentiation and creating sustainable economic growth in the capital. Some of the key speakers include Fergal Harris, global head of real estate and family conglomerates at NBAD, Talal Al Dhiyebi, chief development officer at Aldar Properties and David Dudley, regional director and head of the Abu Dhabi office of JLL, with more speakers to be announced shortly. There will also be a series of networking events including the annual networking reception which offers a platform for influential decision-makers, international investors, developers, architects and consultants to meet and exchange ideas.
How does this compare with last year and the market peak?
The growth of the exhibition is similar to the growth in the number of exhibitors, as the show has grown by roughly 1,000 sq metres from 18,000 in 2014 to 19,000 sq metres this year.
How many visitors are you expecting this year?
Last year we welcomed just more than 17,000 visitors, which represented a 15 per cent year-on-year increase. We hope to see a similar increase for this year in line with the growth of the exhibition.
Are you seeing any effect on the show from the recent fall in oil prices?
We haven’t witnessed any impact on the show this year, as demonstrated by the continued growth the exhibition has generated. We are of course conscious of the fact that sustained lower oil prices may have an impact on government spending, which in turn could affect commercial real estate demand in particular as companies are reviewing the oil price impact and the oil and gas industry still represents a large part (16 per cent) of total office space demand in the capital. Residential properties represent the majority of the projects showcased at Cityscape Abu Dhabi, which are still showing steady growth, according to the latest market reports.
Do you expect that the slowdown in Dubai and Abu Dhabi property will affect sales resulting from the show?
Our events are always a reflection of the state of the markets we serve. The current stability within the Abu Dhabi market bodes well for developers, investors and homebuyers. Latest research and statistics coming from Abu Dhabi indicate that there is a renewed confidence in the property sector with construction visibly moving again. Rental rates are expected to continue to rise at a steady pace throughout 2015 as demand for housing still increases due to the low availability across the board, in particular for quality stock on the secondary market. Popular communities such as Saadiyat Island, Raha Beach and Reem Island are performing particularly well, and we are expecting keen investment interest in these communities at Cityscape Abu Dhabi as well, as they are offering strong potential rental yields.
What checks do you make on exhibitors to ensure that they are legitimate and that their sales are ethical?
We are working closely with our government partners, such as the Abu Dhabi Department of Municipal Affairs and the Abu Dhabi Urban Planning Council, as well as Dubai Land Department and more specifically Rera in Dubai to collect any information from our exhibitors that they may require. If it would turn out that any of our clients doesn’t hold the relevant licence or permits to participate in our events or showcase a specific project, we would follow any instructions given by the relevant authorities. It is worth noting, however, that the majority of our clients have been exhibiting with our events for many years and are in fact very reputable companies that have successfully delivered some outstanding projects across the UAE and beyond.
Are off-plan sales allowed at Cityscape?
As long as exhibitors have all the relevant permits and approvals in place to generate off-plan sales at Cityscape Abu Dhabi, as an organiser we don’t have an issue with this. However, the event is primarily positioned as a marketing event where exhibitors will generate leads for their developments, which could be converted into actual transactions in the days, weeks and months following the event.
Is there still really a need for Cityscape Abu Dhabi – could it not be combined with Cityscape Global?
The Dubai and Abu Dhabi market, though linked due to their proximity, are still two quite distinct marketplaces with their own regulations, trends and supply and demand fundamentals. A frequently heard comment to compare both markets is that Abu Dhabi typically is one to two years behind the market trend in Dubai, which explains why the Abu Dhabi market is still witnessing growth (although no longer double-digit like last year), and the Dubai market is more stagnant in recent months. Where Cityscape Abu Dhabi predominantly focuses on the local market, Cityscape Global is a positioned as the international event in our portfolio, welcoming more overseas exhibitors from across the Middle East, North Africa, Europe and Asia than any of our events. Even when it comes to local UAE participation, both events have quite a distinct exhibitor offering, with only a few larger Abu Dhabi developers such as TDIC, Wahat Al Zaweya and Bloom exhibiting at both events. While we did consider the option of merging both events at some point a couple of years ago, there has been strong support from both real estate markets to maintain their own local event on an annual basis, as demonstrated by the strong turnout of all of UAE’s leading developers at both events every year.
lbarnard@thenational.ae
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