All sectors of the Abu Dhabi real estate market are positioned in the recovery stage of their cycle for the first time since 2008, Jones Lang LaSalle (JLL) has said in a new report.

Its Q3 2014 Abu Dhabi Real Estate Market Overview report said residential, retail, office and hospitality sectors now all showed signs of stabilisation. David Dudley, head of JLL’s Abu Dhabi office, said: “The third quarter of 2014 recorded the continued growth of prices in the residential market and growth in office rents, with continued stabilisation in the hospitality, retail and office sectors.” He added: “Residential remains the strongest performing sector driven by positive investor sentiment and population growth and potential future under-supply.”

Around 1,200 units were added to the residential stock during Q3 while sales prices increased by 6% during the quarter to AED16,000sqm (£2,700sqm). Rents for prime residential units remained stable at AED150,000 per annum (£2,115 per month).

JLL said it expects a future housing shortage as near term supply deliveries are below historic averages at a time of strong demand and predicts further rental increases over the short term.