The prime retail properties in Abu Dhabi have continued to show stability in terms of both rental and occupancy rates, with all the major malls in Abu Dhabi reported to have maintained high occupancy (in excess of 95%), according to a recent report by CBRE. The average prime office rentals remained flat at AED1,800/sqm, but landlords are reported to have started to offer tenants more flexibility with their leasing and payment terms, in an attempt to uphold occupancy rates. The office sector witnessed low occupier demand in Q1 and has reflected a similar reoccurrence in the performance during Q2, according to the report. The residential sector has remained one of the city’s better performing sectors, aided by the low levels of upcoming supply in the short term. According to the report, the sector is witnessing an ongoing downsizing across multiple industry sectors, which has resulted in weaker demand, specifically for high-end apartment products. CBRE said that the more affordable units remain in demand, reflecting the demographic of the vast majority of expatriate workers. Rental rates for affordable units have remained steady with minimal fluctuation recorded against the general slowdown observed in the upper segments. The performance of the hospitality segment was “weaker than normal,” with Ramadan mostly falling in Q2, combined with the adverse effects of increasing hotel competition, USD strength and an overall slowdown in tourism growth. (Arabian Business)