Abu Dhabi witnesses increased supply in residential sector
Friday, October 16, 2009
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Abu Dhabi has witnessed an increase in supply of residential property, with about 1000 new apartments delivered to the market during the last quarter, said Asteco, one of the largest property services company in the UAE.
The apartments are mostly coming up in off-island locations, including Mohammed Bin Zayed City and Khalifa City, the company said in its latest third quarter report on the property scenario in Abu Dhabi.
This increase in housing supply in Abu Dhabi will result in landlords becoming more flexible with their pricing, Asteco points out in its report.
The research conducted by Asteco, which carries out market analysis, has also found that about 400 apartments will come on stream this month in the Abu Dhabi island, apart from the supply of apartments in Khalifa City A.
When the market faces increased supply, there will be more discounts on the offer, points out Elaine Jones, CEO of Asteco.
Currently people are more attracted to Dubai due to its cheaper rents and out of the perception that Dubai gives better value for money.
With better quality units being delivered in Abu Dhabi over the next 6 to 12 months, including Marina Square, Sun and Sky Towers, several daily commuters will consider these developments. Therefore, the prospective tenants will begin to target these developments against comparable properties in Dubai, particularly Dubai Marina, Jones said.
However, this aspect is not only the deciding factor to choose a location, Jones agrees. There are also other aspects to be taken into consideration such as giving notice to existing landlords, job issues, and schooling. Therefore, the market demand dynamics may not change until next summer, she points out.
Latest Asteco report states Khalidiyah and Corniche as the high-demand areas, although tenants have begun looking at development off Abu Dhabi island too.
Average rental rates on the Corniche for single, double and triple bedroom apartments are Dh.130,000, Dh.175,000 and Dh.220,000 respectively, down from their peaks of Dh.180,000, Dh.260,000 and Dh.350,000.
Developments with gymnasium and swimming pools have begun to command a premium and this is hoped to be the trend with the Marina Square, Meena Plaza and Capital Plaza coming online, the Asteco report said.
The report also highlights demand from small companies in the office market, increasing choice in Al Ain's residential market and expansion in the retail sector.
Labels: Abu Dhabi, Residential
Deerfields commences construction work on mixed-use project
Thursday, July 02, 2009
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Deerfields Town Square, the flagship project developed by MBI, an Abu Dhabi-based venture with major stakes in real estate and construction, has commenced work on their mixed-use project.
The leading international architectural firm RMJM has been appointed as the Lead Design Consultants for the Deerfields project. RMJM will also work towards implementing changes to the facade, interiors and landscape design of the mall.
The initial ground work and de-watering process has begun, and the building contractor will be announced soon. This marks a new phase in the development of the project.
Located at Al Bahia in Abu Dhabi, and spreading across 220,000 square meters, the Deerfields Town Square project is hoped to be ready by second quarter of 2011.
The General Manager of Deerfields Town Square, Banu Tas, mentioned that the ground-breaking ceremony has taken place, and the project is moving towards its first phase of construction.
The Director of RMJM, Tim Baker mentioned that his company is offering design consultancy for the project, so that the entertainment, shopping, dining, recreation and hospitality venues all come together under a single roof, in a manner so as to offer residents and visitors high quality experience.
Early this year, MBI had entered into an agreement with Carrefour hypermarket mandating a 20-year lease deal. This anchor shop of the French retail giant will span across an area of 10,000 square meters at the Deerfields Town Square project.
Colliers International, the globally renowned retail consultant, will have about 200 retailers from medium to upscale brands, anchor shops, food courts, retail chains, casual and fine dining restaurants, and coffee shops, accounting to almost 80 percent of the development.
MBI is a major investment company specializing in real estate and construction, infrastructure and other industrial ventures.
Deerfields Town Square, the flagship project developed by MBI, an Abu Dhabi-based venture with major stakes in real estate and construction, has commenced work on their mixed-use project.The leading international architectural firm RMJM has been appointed as the Lead Design Consultants for the Deerfields project. RMJM will also work towards implementing changes to the facade, interiors and landscape design of the mall.
The initial ground work and de-watering process has begun, and the building contractor will be announced soon. This marks a new phase in the development of the project.
Located at Al Bahia in Abu Dhabi, and spreading across 220,000 square meters, the Deerfields Town Square project is hoped to be ready by second quarter of 2011.
The General Manager of Deerfields Town Square, Banu Tas, mentioned that the ground-breaking ceremony has taken place, and the project is moving towards its first phase of construction.
The Director of RMJM, Tim Baker mentioned that his company is offering design consultancy for the project, so that the entertainment, shopping, dining, recreation and hospitality venues all come together under a single roof, in a manner so as to offer residents and visitors high quality experience.
Early this year, MBI had entered into an agreement with Carrefour hypermarket mandating a 20-year lease deal. This anchor shop of the French retail giant will span across an area of 10,000 square meters at the Deerfields Town Square project.
Colliers International, the globally renowned retail consultant, will have about 200 retailers from medium to upscale brands, anchor shops, food courts, retail chains, casual and fine dining restaurants, and coffee shops, accounting to almost 80 percent of the development.
MBI is a major investment company specializing in real estate and construction, infrastructure and other industrial ventures.
Labels: Abu Dhabi
Abu Dhabi issues decree to monitor issue of plots, low-cost housing
Saturday, June 20, 2009
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The Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, Gen. Shaikh Mohammad bin Zayed al Nahyan, has passed a decree, wherein a Committee has been formed to monitor the distribution of plots and distribution of low-budget housing for UAE nationals, and how to put the properties into good use.
The legislation is inline with the directives by the President H.H. Shaikh Khalifa bin Zayed al Nahyan, who empowers the Committee, under the Chairmanship of Director General of Abu Dhabi Crown Prince's Office, to act accordingly to ensure reasonable distribution of houses and plots.
The Committee can propose necessary legislation required to regulate the distribution of houses and land, and how they could be put to good use.
It will also study issues pertaining to housing and draw necessary plans to solve any housing-related issues, and follow-up implementation of land and housing-related legislations and find out any possible causes that pose hindrance to the smooth implementation of the programme.
The Chairman of Abu Dhabi Executive Council, Shaikh Mohammad, issued another decree establishing Abu Dhabi Center for Housing and Development of Utility Services. This center aims to improve standards of implementation of projects, ensuring that they meet the highest engineering standards. The center will also collaborate with the private sector to implement construction plans.
Another decree has been issued by Shaikh Mohammed wherein certain decisions made by the Eastern Region Development have been amended.
The Abu Dhabi Crown Prince also passed a decree on safety, health and environment management system.
The legislation is inline with the directives by the President H.H. Shaikh Khalifa bin Zayed al Nahyan, who empowers the Committee, under the Chairmanship of Director General of Abu Dhabi Crown Prince's Office, to act accordingly to ensure reasonable distribution of houses and plots.
The Committee can propose necessary legislation required to regulate the distribution of houses and land, and how they could be put to good use.
It will also study issues pertaining to housing and draw necessary plans to solve any housing-related issues, and follow-up implementation of land and housing-related legislations and find out any possible causes that pose hindrance to the smooth implementation of the programme.
The Chairman of Abu Dhabi Executive Council, Shaikh Mohammad, issued another decree establishing Abu Dhabi Center for Housing and Development of Utility Services. This center aims to improve standards of implementation of projects, ensuring that they meet the highest engineering standards. The center will also collaborate with the private sector to implement construction plans.
Another decree has been issued by Shaikh Mohammed wherein certain decisions made by the Eastern Region Development have been amended.
The Abu Dhabi Crown Prince also passed a decree on safety, health and environment management system.
Labels: Abu Dhabi, land, Property Law
Al Reef Villas most popular among mid-income group
Friday, June 19, 2009
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According to The Specialists, a provider for total property solutions, Al Reef Villas in Abu Dhabi which include residential properties for mid-income sector, are one of the most popular offerings.
The projected demand of about 100,000 housing units in Abu Dhabi continues to be driven by a major supply gap in the mid-income level.
With residential properties being much in demand in Abu Dhabi, the investor interest continues to remain strong. The Specialists have begun offering units from Al Reef Villas in the market.
The General Manager of The Specialists, Sobhi Agha, agreed that the company has received huge numbers of bookings and reservations on a daily basis for properties within the integrated development project.
The Specialists recently entered into a contract with developer Manazel Real Estate, to offer a complete range of real estate solutions, including leasing, sales, and property management services for Al Reef Villas in the Capital.
Al Reef Villas are the first planned community in the UAE, exclusively for the middle class. The villas offer an integrated environment with a range of lifestyle options, all in a single location. Located in proximity to the Al Raha Beach, the villas come in four themes - Desert, Mediterranean, Arabic and Contemporary. The housing complex also includes several modern apartments in various styles.
Among the various amenities in Al Reef Villas are verdant public parks, lush landscaped gardens, swimming pools, health clubs, retail area, mosque, educational facilities, medical clinic, 24-hour concierge, and high-tech equipment to secure all properties.
The Specialists offers a comprehensive range of services, covering all aspects of property transactions in commercial and residential markets, either for sale or for lease. The company also offers property management services to several of its clients in the UAE. It is also planning expansion across other major markets in the Middle East, including Lebanon.
The projected demand of about 100,000 housing units in Abu Dhabi continues to be driven by a major supply gap in the mid-income level.
With residential properties being much in demand in Abu Dhabi, the investor interest continues to remain strong. The Specialists have begun offering units from Al Reef Villas in the market.
The General Manager of The Specialists, Sobhi Agha, agreed that the company has received huge numbers of bookings and reservations on a daily basis for properties within the integrated development project.
The Specialists recently entered into a contract with developer Manazel Real Estate, to offer a complete range of real estate solutions, including leasing, sales, and property management services for Al Reef Villas in the Capital.
Al Reef Villas are the first planned community in the UAE, exclusively for the middle class. The villas offer an integrated environment with a range of lifestyle options, all in a single location. Located in proximity to the Al Raha Beach, the villas come in four themes - Desert, Mediterranean, Arabic and Contemporary. The housing complex also includes several modern apartments in various styles.
Among the various amenities in Al Reef Villas are verdant public parks, lush landscaped gardens, swimming pools, health clubs, retail area, mosque, educational facilities, medical clinic, 24-hour concierge, and high-tech equipment to secure all properties.
The Specialists offers a comprehensive range of services, covering all aspects of property transactions in commercial and residential markets, either for sale or for lease. The company also offers property management services to several of its clients in the UAE. It is also planning expansion across other major markets in the Middle East, including Lebanon.
Labels: Abu Dhabi, Al Raha Beach, Residential, Villa Projects
Tameer Towers makes scheduled progress for hand-over by 2011
Thursday, June 04, 2009
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Tameer Towers, the iconic project by leading property developer Tameer, also the focal point of The Shams District of Reem Island in Abu Dhabi, is progressing as scheduled and is due for hand-over by 2011.
The enabling works have been successfully completed, and the construction agreement has been signed between Al Rajhi Projects and Construction together with Al-Habtoor Engineering Enterprises.
The 9mn square feet complex includes a signature commercial tower, and four luxury residential towers. The excavation, shoring and piling works are in progress. The enabling works for entire development was completed in December 2008, which marks a significant milestone for timely delivery of the project. Thereafter, pile capping, trimming, concrete blinding, and water proofing works have been undertaken, together with installation of three tower cranes.
The sub-structure works has commenced, and the superstructure works will begin by the end of this year.
Located in the heart of Shams development, on the prestigious Al Reem Island in Abu Dhabi, Tameer Towers is an exceptional landmark, offering an unprecedented, luxurious and exciting lifestyle.
The towers comprise four residential towers, a commercial tower, townhouses and stepped villas, deluxe serviced apartments, a private marina, and vibrant canal promenade, all integrated harmoniously to create the iconic landmark. The towers offer unparalleled scenic views cascading down into the sea on the east side, and the Sorouh Central Park on the west.
The main attraction of Tameer Towers is the 74-storey diamond shaped commercial tower. The tower is split at the base to include the canal and the pedestrian walkway, connecting the Central Park with the sea. Built along the terraces cascading into the marina and canal, each villa has a separate driveway, a private garden and swimming pool and terrace, which offers wonderful sea or park view.
The enabling works have been successfully completed, and the construction agreement has been signed between Al Rajhi Projects and Construction together with Al-Habtoor Engineering Enterprises.
The 9mn square feet complex includes a signature commercial tower, and four luxury residential towers. The excavation, shoring and piling works are in progress. The enabling works for entire development was completed in December 2008, which marks a significant milestone for timely delivery of the project. Thereafter, pile capping, trimming, concrete blinding, and water proofing works have been undertaken, together with installation of three tower cranes.
The sub-structure works has commenced, and the superstructure works will begin by the end of this year.
Located in the heart of Shams development, on the prestigious Al Reem Island in Abu Dhabi, Tameer Towers is an exceptional landmark, offering an unprecedented, luxurious and exciting lifestyle.
The towers comprise four residential towers, a commercial tower, townhouses and stepped villas, deluxe serviced apartments, a private marina, and vibrant canal promenade, all integrated harmoniously to create the iconic landmark. The towers offer unparalleled scenic views cascading down into the sea on the east side, and the Sorouh Central Park on the west.
The main attraction of Tameer Towers is the 74-storey diamond shaped commercial tower. The tower is split at the base to include the canal and the pedestrian walkway, connecting the Central Park with the sea. Built along the terraces cascading into the marina and canal, each villa has a separate driveway, a private garden and swimming pool and terrace, which offers wonderful sea or park view.
Labels: Abu Dhabi, Business Tower, Tameer
Mohammed Bin Zayed City residential towers design finalized
Friday, April 24, 2009
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The design of residential towers in Abu Dhabi's Mohammed Bin Zayed City has been finalized. On completion, the city will have the capacity to accommodate about 85,000 residents, it is said.
The Head of Planning and Co-ordination in the Town Planning Section of Abu Dhabi Municipality, Fadhl Al Braiki, said that stage one of the project is completed, and the design of the 349 residential towers have been finalized. Out of these, 12,000 residential units will be completed by 2012.
Located 15 to 20 kilometers away from the city, the development covers a gross built-up area of 5.8million square meters. The highest tower will include 22 storeys, while the lowest will cover 12 storeys. Each tower costs about Dh.70million, and includes shops, commercial establishments and underground parking.
The next stage of the project is to design the other services, including utilities, and the construction of towers and infrastructure projects will be completed simultaneously, Al Braiki said.
The project is hoped to ease the housing shortage in the emirate, as it targets the mid-income sector.
The Head of Planning and Co-ordination in the Town Planning Section of Abu Dhabi Municipality, Fadhl Al Braiki, said that stage one of the project is completed, and the design of the 349 residential towers have been finalized. Out of these, 12,000 residential units will be completed by 2012.
Located 15 to 20 kilometers away from the city, the development covers a gross built-up area of 5.8million square meters. The highest tower will include 22 storeys, while the lowest will cover 12 storeys. Each tower costs about Dh.70million, and includes shops, commercial establishments and underground parking.
The next stage of the project is to design the other services, including utilities, and the construction of towers and infrastructure projects will be completed simultaneously, Al Braiki said.
The project is hoped to ease the housing shortage in the emirate, as it targets the mid-income sector.
2010, best time to invest in Middle East realty sector
Monday, April 20, 2009
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With the investors beginning to consider Abu Dhabi as the top regional market in terms of city competitiveness, the year 2010 would be the best time to invest in the Middle East and North Africa (MENA) real estate market, says a new report.
The Head of MENA Investment Transactions at Jones Lang LaSalle, Ian Ohan, says "Investors expect Abu Dhabi to be the best performing property market in the MENA region during the next one or two years."
Given the current scarcity of institutional quality real estate in most sectors of the market, investors are finding the most attractive investment environment in Abu Dhabi, compared to other major markets in the region.
The long-term success and sustainability of the city, including the planned infrastructure, real estate planning, strong corporate governance, environment sustainability, quality of leadership and political stability have all further contributed to this fact.
The financial strength of the government also offers a solid platform for continued infrastructure spending over the next couple of years. As in the other markets, decreased cost of construction and falling land values would result in high returns, particularly, on the projects at their early stages of development.
According to a Jones Lang LaSalle report in March, the Abu Dhabi market is dominated by government-related companies, who are beginning to intervene to rationalize and delay projects, thereby avoiding potential over-supply in future.
Saudi Arabia is also increasingly being considered as offering strong potential, with several respondents suggesting that it would be the strongest performing property markets across the MENA region in the next one or two years.
However, despite concerns over short-term risks, Dubai has been ranked second (following Abu Dhabi) on the most of long-term underlying factors, which promises a recovery of the market in the medium-term. With significant market adjustments in rental values and capital, already in place, Dubai too, may be one of the most lucrative property investment opportunities in the region.
The Head of MENA Investment Transactions at Jones Lang LaSalle, Ian Ohan, says "Investors expect Abu Dhabi to be the best performing property market in the MENA region during the next one or two years."
Given the current scarcity of institutional quality real estate in most sectors of the market, investors are finding the most attractive investment environment in Abu Dhabi, compared to other major markets in the region.
The long-term success and sustainability of the city, including the planned infrastructure, real estate planning, strong corporate governance, environment sustainability, quality of leadership and political stability have all further contributed to this fact.
The financial strength of the government also offers a solid platform for continued infrastructure spending over the next couple of years. As in the other markets, decreased cost of construction and falling land values would result in high returns, particularly, on the projects at their early stages of development.
According to a Jones Lang LaSalle report in March, the Abu Dhabi market is dominated by government-related companies, who are beginning to intervene to rationalize and delay projects, thereby avoiding potential over-supply in future.
Saudi Arabia is also increasingly being considered as offering strong potential, with several respondents suggesting that it would be the strongest performing property markets across the MENA region in the next one or two years.
However, despite concerns over short-term risks, Dubai has been ranked second (following Abu Dhabi) on the most of long-term underlying factors, which promises a recovery of the market in the medium-term. With significant market adjustments in rental values and capital, already in place, Dubai too, may be one of the most lucrative property investment opportunities in the region.
Labels: Abu Dhabi, Investment Property, Middle-East
Cityscape Abu Dhabi 2009 opens with fresh hope to tackle crisis
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The four-day annual property exhibition, Cityscape Abu Dhabi 2009, has been unveiled at the Abu Dhabi National Exhibition Center on Sunday.
The show involves participation of both regional and international investors, government authorities, real estate developers who intend to discuss the current market challenges and strategies to tackle them.
The event was inaugurated by General Shaikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and the Deputy Supreme Commander of the UAE Armed Forces. When touring the exhibition, General Shaikh Mohammad was briefed by exhibitors about their developments.
There are about 40 or more participating companies in the event. An executive from Sorouh Real Estate said that few developers have been offering affordable housing for all levels of income. This is an important development, as earlier, only prominence was given only for high-end property developments, he added.
A senior executive of Aldar Properties, one of the largest property development companies in Abu Dhabi, Ousama Ghannoum, said that several banks and finance houses have come forward offering loans to potential buyers, which would generate interest in various developments in and around Abu Dhabi City and the emirate.
The Managing Director of Ascon Group, Abid Junaid, said that this year's Cityscape is hoped to re-instill the consumer confidence in the property sector and help in revival of the sector.
Abu Dhabi has a better hold and can capitalize on the relative weakness of other property markets facing turmoil and uncertainty due to global economic recession. This is because the emirate has the largest sovereign wealth fund and the long-term plans for continued real estate and infrastructure development.
This year's Cityscape is likely to be 32 percent bigger than its last year's edition and covers a gross area of more than 38.000 square meters.
New projects are to be announced at the exhibitions, including one by Aldar Properties.
The four-day annual property exhibition, Cityscape Abu Dhabi 2009, has been unveiled at the Abu Dhabi National Exhibition Center on Sunday.The show involves participation of both regional and international investors, government authorities, real estate developers who intend to discuss the current market challenges and strategies to tackle them.
The event was inaugurated by General Shaikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and the Deputy Supreme Commander of the UAE Armed Forces. When touring the exhibition, General Shaikh Mohammad was briefed by exhibitors about their developments.
There are about 40 or more participating companies in the event. An executive from Sorouh Real Estate said that few developers have been offering affordable housing for all levels of income. This is an important development, as earlier, only prominence was given only for high-end property developments, he added.
A senior executive of Aldar Properties, one of the largest property development companies in Abu Dhabi, Ousama Ghannoum, said that several banks and finance houses have come forward offering loans to potential buyers, which would generate interest in various developments in and around Abu Dhabi City and the emirate.
The Managing Director of Ascon Group, Abid Junaid, said that this year's Cityscape is hoped to re-instill the consumer confidence in the property sector and help in revival of the sector.
Abu Dhabi has a better hold and can capitalize on the relative weakness of other property markets facing turmoil and uncertainty due to global economic recession. This is because the emirate has the largest sovereign wealth fund and the long-term plans for continued real estate and infrastructure development.
This year's Cityscape is likely to be 32 percent bigger than its last year's edition and covers a gross area of more than 38.000 square meters.
New projects are to be announced at the exhibitions, including one by Aldar Properties.
Cityscape Abu Dhabi to kick-start on 19th April
Saturday, April 18, 2009
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The Cityscape Abu Dhabi, the international property investment and development event, will be held between April 19th and 22nd 2009 at the Abu Dhabi National Exhibition Center (ADNEC), it has been announced.
This year's event is hoped to be 32 percent bigger than last year's event, and would cover an area of more than 38,000 square meters.
Ever-since its launch in 2007, the Cityscape Abu Dhabi has grown considerably year after year.
This growth will continue this year too, due to expansion of ADNEC's exhibition facilities to create the largest exhibition center in the Gulf.
This year's event has six additional halls, making the event to span across 9 exhibition halls, apart from the Atrium.
The Cityscape is an annual networking exhibition and conference that focuses on all aspects of property development. It attracts property developers, regional and international investors, lead architects and designers to an annual forum that celebrates the best in architecture, real estate, urban planning and design.
The event is open on the said days from 10am to 7pm at ADNEC.
This year's event is hoped to be 32 percent bigger than last year's event, and would cover an area of more than 38,000 square meters.
Ever-since its launch in 2007, the Cityscape Abu Dhabi has grown considerably year after year.
This growth will continue this year too, due to expansion of ADNEC's exhibition facilities to create the largest exhibition center in the Gulf.
This year's event has six additional halls, making the event to span across 9 exhibition halls, apart from the Atrium.
The Cityscape is an annual networking exhibition and conference that focuses on all aspects of property development. It attracts property developers, regional and international investors, lead architects and designers to an annual forum that celebrates the best in architecture, real estate, urban planning and design.
The event is open on the said days from 10am to 7pm at ADNEC.
Labels: Abu Dhabi, Cityscape, Property-show
Rents in Abu Dhabi higher than in Dubai
Friday, April 17, 2009
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Rental in Abu Dhabi continues to remain strong are likely to remain so, despite the decline in rents in the other GCC nations owing to the global financial crisis.
The leading property management company, Asteco, has reported that residential and commercial rents have dropped very little during the first quarter of this year, inline with capital values. The scarcity in supply of residential and commercial units has led to high demand for quality office and apartments.
Companies are also reducing the accommodation allowance of staff, which has made its impact felt on the ability of tenants to rent at current levels.
Residential apartments in the Corniche and Khalidiya are the most popular, and rentals are high in these areas. The average annual rent for a single bedroom apartment in these areas are Dh.252,500 and Dh.170,000 respectively.
Just as in Dubai, even here, the local investors do not agree to lower their prices on vacant units. However, expatriate owners have reduced their apartment rents by almost 20 percent.
Villas in Bateen and Khalidiya are expensive with Dh.365,000 being charged per year for a three bedroom apartment, while Dh.410,000 and Dh.475,000 are being charged for four bedroom and five bedrooms.
On the whole, the rents in Abu Dhabi seem to be more expensive than in Dubai, in contrast to the usual norm.
The Managing Director of Asteco, Andrew Chambers, has warned that due to shortage of supply, Abu Dhabi is just being perceived differently. About 5000 to 6000 new apartments would come on the market during early 2010.
This extra stock would give tenants a better range of properties to choose from, and offer better flexibility in negotiating with landlords. There is an increase in residential apartments in the Passport Road, Hamdan Street, Corniche and Muroor areas. More villas would enter the market this year, particularly in the Golf Gardens, Al Reef and Khalifa City A and Al Raha Gardens.
As for the commercial rents, there is still strong demand noticed for Grade A office units, while substandard properties have seen a decrease in rents. Office spaces have dropped 27 percent on Defence Street and Muroor, and by 25 percent on Passport Road.
The leading property management company, Asteco, has reported that residential and commercial rents have dropped very little during the first quarter of this year, inline with capital values. The scarcity in supply of residential and commercial units has led to high demand for quality office and apartments.
Companies are also reducing the accommodation allowance of staff, which has made its impact felt on the ability of tenants to rent at current levels.
Residential apartments in the Corniche and Khalidiya are the most popular, and rentals are high in these areas. The average annual rent for a single bedroom apartment in these areas are Dh.252,500 and Dh.170,000 respectively.
Just as in Dubai, even here, the local investors do not agree to lower their prices on vacant units. However, expatriate owners have reduced their apartment rents by almost 20 percent.
Villas in Bateen and Khalidiya are expensive with Dh.365,000 being charged per year for a three bedroom apartment, while Dh.410,000 and Dh.475,000 are being charged for four bedroom and five bedrooms.
On the whole, the rents in Abu Dhabi seem to be more expensive than in Dubai, in contrast to the usual norm.
The Managing Director of Asteco, Andrew Chambers, has warned that due to shortage of supply, Abu Dhabi is just being perceived differently. About 5000 to 6000 new apartments would come on the market during early 2010.
This extra stock would give tenants a better range of properties to choose from, and offer better flexibility in negotiating with landlords. There is an increase in residential apartments in the Passport Road, Hamdan Street, Corniche and Muroor areas. More villas would enter the market this year, particularly in the Golf Gardens, Al Reef and Khalifa City A and Al Raha Gardens.
As for the commercial rents, there is still strong demand noticed for Grade A office units, while substandard properties have seen a decrease in rents. Office spaces have dropped 27 percent on Defence Street and Muroor, and by 25 percent on Passport Road.
Abu Dhabi property sector welcomes foreign buyers for the first time
Monday, April 13, 2009
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Al Reef Development by the Manazel Real Estate is progressing as scheduled, and is the first property project to deliver homes in Abu Dhabi, which can be purchased by foreigners. Also, the Al Raha Beach, by Aldar Properties, is also on its way towards completion of its first phase of the development.
Al Reef includes 2380 villas and 1810 apartments near the Abu Dhabi International Airport. The first phase of Al Reef villas will be delivered during the third and fourth quarters of this year, while the other phases are scheduled between March and the end of next year. This includes the 46 five-storey apartment buildings of Al Reef Downtown. Al Reef villas and apartments were sold out soon after their launch in 2006.
Manazel, a private developer, is also likely to hand-over the keys of Dunes Village, a 942 apartment project in Dubai, next week to investors. The Dunes Village comprises 19 five-storey buildings in Dubai Investment Park on the Emirates Road. This will be completed by 15th April.
"Dunes and Al Reef are nearly complete, and nothing of it has been altered," said Zeyad al Bakeri, Senior Project Manager at Manazel. However, due to the recession in the property sector, the company had to reschedule its ambitious project, Building Materials City (BMC), extending the construction period to five years, instead of three.
The BMC includes 4151 apartments, offices and a shopping mall. The mall and the two prestige towers are under construction. The towers would be completed in three phases over five years, instead of two-and-a-half years as originally planned.
Al Reef includes 2380 villas and 1810 apartments near the Abu Dhabi International Airport. The first phase of Al Reef villas will be delivered during the third and fourth quarters of this year, while the other phases are scheduled between March and the end of next year. This includes the 46 five-storey apartment buildings of Al Reef Downtown. Al Reef villas and apartments were sold out soon after their launch in 2006.
Manazel, a private developer, is also likely to hand-over the keys of Dunes Village, a 942 apartment project in Dubai, next week to investors. The Dunes Village comprises 19 five-storey buildings in Dubai Investment Park on the Emirates Road. This will be completed by 15th April.
"Dunes and Al Reef are nearly complete, and nothing of it has been altered," said Zeyad al Bakeri, Senior Project Manager at Manazel. However, due to the recession in the property sector, the company had to reschedule its ambitious project, Building Materials City (BMC), extending the construction period to five years, instead of three.
The BMC includes 4151 apartments, offices and a shopping mall. The mall and the two prestige towers are under construction. The towers would be completed in three phases over five years, instead of two-and-a-half years as originally planned.
Labels: Abu Dhabi, Real Estate News
Abu Dhabi's Tameer Towers under review
Thursday, March 26, 2009
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Tameer Holding announced yesterday that its Dh.5.78bn Tameer Towers project at the Reem Island in Abu Dhabi, has been put under review.
According to the company sources, the developer is planning to cancel its construction contracts with Al Habtoor Engineering, Al Rajhi Contracting and Murray & Roberts. However, the company is also said be thinking about the option of hiring the same contractors at re-negotiated prices.
According to a company official, Tameer has however confirmed that the Tameer Towers project will move ahead. The enabling works are already completed, and the residential sub-structure works would begin on completing this assessment.
Currently several real estate developers are re-negotiating construction contracts, as the prices of raw materials such as steel and concrete have fallen, and in few cases, the developers have even passed on the savings to buyers by lowering home prices to increase sales.
Tameer Holding had laid off more than half of its employees late last year, when the property sector swept into recession. The Tameer Towers is expected to be a major project of the Shams Abu Dhabi development on Reem Island. The project was planned to include six towers, with four residential and one commercial building, and a hotel, apart from other amenities.
According to the company sources, the developer is planning to cancel its construction contracts with Al Habtoor Engineering, Al Rajhi Contracting and Murray & Roberts. However, the company is also said be thinking about the option of hiring the same contractors at re-negotiated prices.
According to a company official, Tameer has however confirmed that the Tameer Towers project will move ahead. The enabling works are already completed, and the residential sub-structure works would begin on completing this assessment.
Currently several real estate developers are re-negotiating construction contracts, as the prices of raw materials such as steel and concrete have fallen, and in few cases, the developers have even passed on the savings to buyers by lowering home prices to increase sales.
Tameer Holding had laid off more than half of its employees late last year, when the property sector swept into recession. The Tameer Towers is expected to be a major project of the Shams Abu Dhabi development on Reem Island. The project was planned to include six towers, with four residential and one commercial building, and a hotel, apart from other amenities.
Labels: Abu Dhabi, Construction Projects
Work on Abu Dhabi's Second Downtown to begin in a year's time
Monday, March 16, 2009
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The work on Second Downtown in Abu Dhabi would begin in a year's time, following the approval by Executive Council, it has .
The Capital District, to be built 7km inland from Abu Dhabi Island, will eventually house a population of 370,000, including all embassies and federal government institutions.
The General Manager of the Urban Planning Council (UPC), Falah al Ahbabi, said that work on the district would begin during the first or second quarter of 2010.
The first phase of the project includes houses, universities and government offices, all of which will be completed in three years time.
The massive project, which spreads across 4900 hectares of space, comprises commercial buildings, government buildings, residential buildings, parks and schools. The place will turn out to be a truly sustainable city that will accommodate a population of 370,000 in a span of 25 years.
The residential component of the district would keep aside 3000 units for Emirati Citizens. The plots have been designed and are ready to be allocated.
The true vision of the project will be revealed during the Cityscape Abu Dhabi to be held next month. The Capital District is hoped to ease the burden on Abu Dhabi Island, and create a recognizable center for the Capital.
The infrastructure work would commence during the first quarter of 2010. The infrastructure for the first phase would be completed within two years of launch of the project. But, the completion of the whole infrastructure, may take six years, or even ten years, depending on the rest of the phases.
Phase One of the project involves the development of federal government offices at the Town Centre, a Sports City, the Emirati housing and new headquarters for Khalifa University and Zayed University, and an exhibition or convention center.
The cost of the project is yet to be revealed by the UPC.
Al Ahbabi, said that Abu Dhabi is facing a shortage of housing, and hence these developments need to be taken forward aggressively. In the meanwhile, the Department of Transport revealed that the Capital District would be linked to the Abu Dhabi Island by a tram, high-speed and metro rail, all of which, will, also be linked to Dubai by 2030.
The Capital District, to be built 7km inland from Abu Dhabi Island, will eventually house a population of 370,000, including all embassies and federal government institutions.
The General Manager of the Urban Planning Council (UPC), Falah al Ahbabi, said that work on the district would begin during the first or second quarter of 2010.
The first phase of the project includes houses, universities and government offices, all of which will be completed in three years time.
The massive project, which spreads across 4900 hectares of space, comprises commercial buildings, government buildings, residential buildings, parks and schools. The place will turn out to be a truly sustainable city that will accommodate a population of 370,000 in a span of 25 years.
The residential component of the district would keep aside 3000 units for Emirati Citizens. The plots have been designed and are ready to be allocated.
The true vision of the project will be revealed during the Cityscape Abu Dhabi to be held next month. The Capital District is hoped to ease the burden on Abu Dhabi Island, and create a recognizable center for the Capital.
The infrastructure work would commence during the first quarter of 2010. The infrastructure for the first phase would be completed within two years of launch of the project. But, the completion of the whole infrastructure, may take six years, or even ten years, depending on the rest of the phases.
Phase One of the project involves the development of federal government offices at the Town Centre, a Sports City, the Emirati housing and new headquarters for Khalifa University and Zayed University, and an exhibition or convention center.
The cost of the project is yet to be revealed by the UPC.
Al Ahbabi, said that Abu Dhabi is facing a shortage of housing, and hence these developments need to be taken forward aggressively. In the meanwhile, the Department of Transport revealed that the Capital District would be linked to the Abu Dhabi Island by a tram, high-speed and metro rail, all of which, will, also be linked to Dubai by 2030.
Labels: Abu Dhabi, Infrastructure
Abu Dhabi property market indicates strong confidence
Sunday, March 08, 2009
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The Abu Dhabi property market indicates a strong confidence, based on stable and genuine market demand, rather than speculation, which has led to fundamental growth of the UAE capital, according to development experts.
Speaking during the first Cityscape Connect Business Breakfast in Abu Dhabi, about 150 real estate executives and investors got together and discussed the current challenges faced by the market, ahead of Cityscape Abu Dhabi, due to take place between the 19th and 22nd April 2009 at the Abu Dhabi National Exhibition Center.
The global economic turmoil has cast a shadow over the property sector, growth prospects and changing market dynamics, said Rohan Marwaha, the Managing Director of Cityscape.
The Cityscape Connect initiative is introduced by IIR Middle East, the organizers of Cityscape Abu Dhabi. Speaking during the session, Marwaha, said that this year's event is quite strong with the growth of 30% of last year, and 48% increase in advance registration of visitors.
Charles Acworth, Director-Research and Head of Commercial Leasing for Aldar, said Abu Dhabi is the 'location of choice in Middle East' for retailers.
He expressed strong confidence in the Abu Dhabi retail market, hotel and residential sectors. Though some "reworking" is still being done, there is an undersupply of residential property for end-user occupiers, and the situation is hoped to continue for next five years.
Speaking about the residential market, Gurit Singh, the Chief Property Development Officer of Sorouh, said that stability is likely to return to rental marked within four quarters from now, depending on supply of new properties to the market.
The Managing Director of Burooj Properties, Adel Zarouni, said that the overall growth of Abu Dhabi property marked is genuine, and is not affected by speculation.
The Legal Consultant with Clyde & Co., Scott Ajtken, said that the only challenges identified are the need to find new finance options for new developments and the need for regulations covering both developers and investors.
Cityscape Abu Dhabi 2009 has generated good response and support from industry leaders.
Speaking during the first Cityscape Connect Business Breakfast in Abu Dhabi, about 150 real estate executives and investors got together and discussed the current challenges faced by the market, ahead of Cityscape Abu Dhabi, due to take place between the 19th and 22nd April 2009 at the Abu Dhabi National Exhibition Center.
The global economic turmoil has cast a shadow over the property sector, growth prospects and changing market dynamics, said Rohan Marwaha, the Managing Director of Cityscape.
The Cityscape Connect initiative is introduced by IIR Middle East, the organizers of Cityscape Abu Dhabi. Speaking during the session, Marwaha, said that this year's event is quite strong with the growth of 30% of last year, and 48% increase in advance registration of visitors.
Charles Acworth, Director-Research and Head of Commercial Leasing for Aldar, said Abu Dhabi is the 'location of choice in Middle East' for retailers.
He expressed strong confidence in the Abu Dhabi retail market, hotel and residential sectors. Though some "reworking" is still being done, there is an undersupply of residential property for end-user occupiers, and the situation is hoped to continue for next five years.
Speaking about the residential market, Gurit Singh, the Chief Property Development Officer of Sorouh, said that stability is likely to return to rental marked within four quarters from now, depending on supply of new properties to the market.
The Managing Director of Burooj Properties, Adel Zarouni, said that the overall growth of Abu Dhabi property marked is genuine, and is not affected by speculation.
The Legal Consultant with Clyde & Co., Scott Ajtken, said that the only challenges identified are the need to find new finance options for new developments and the need for regulations covering both developers and investors.
Cityscape Abu Dhabi 2009 has generated good response and support from industry leaders.
Labels: Abu Dhabi, Cityscape, Market Trends
Hydra Village Abu Dhabi units to be delivered by Q2 2009
Sunday, February 15, 2009
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The leading UAE-based property developer, Hydra Properties, has achieved another milestone by announcing plans about hand-over of units of Hydra Village Abu Dhabi, one of its major community developments. The units will be delivered during mid-2009, as it completes Phase I of the mega project.
The leading property developer has also announced that excavation work for Phase II is nearly 20% complete, and the construction is progressing as scheduled. This achievement underlines the commitment by Hydra to complete the prestigious project on schedule by December 2010.
Speaking about the progress of the project, the CEO of Hydra Properties, Dr. Sulaiman Al Fahim, said that the timely delivery of Hydra Village Abu Dhabi units is one of the ways of expressing the company's dedication towards providing their clientele with complete satisfaction of services and offerings.
The construction of the project is currently monitored by few well-established contractors in the construction industry, such as Blue Sea, PAL Technology, Ersa, Abu Dhabi Land, Samer Group, Bayunah, and NEB Consultants.
Hydra Village Abu Dhabi is more of an eco-living retreat, designed by laying emphasis on conservation. It offers all amenities, and smart technologies, associated with modern living, while also offering eco-living at its best.
Strategically located, near Al Reef Palace in Abu Dhabi, Hydra Village Abu Dhabi is a residential community surrounding a total area of 950,000 square metres, with 2500 well-furnished villas, and 17 residential apartment blocks.
The units are featured with excellent amenities, including schools, mosques, clinic, and retail units that make the community a self-sufficient family destination.
The leading UAE-based property developer, Hydra Properties, has achieved another milestone by announcing plans about hand-over of units of Hydra Village Abu Dhabi, one of its major community developments. The units will be delivered during mid-2009, as it completes Phase I of the mega project.The leading property developer has also announced that excavation work for Phase II is nearly 20% complete, and the construction is progressing as scheduled. This achievement underlines the commitment by Hydra to complete the prestigious project on schedule by December 2010.
Speaking about the progress of the project, the CEO of Hydra Properties, Dr. Sulaiman Al Fahim, said that the timely delivery of Hydra Village Abu Dhabi units is one of the ways of expressing the company's dedication towards providing their clientele with complete satisfaction of services and offerings.
The construction of the project is currently monitored by few well-established contractors in the construction industry, such as Blue Sea, PAL Technology, Ersa, Abu Dhabi Land, Samer Group, Bayunah, and NEB Consultants.
Hydra Village Abu Dhabi is more of an eco-living retreat, designed by laying emphasis on conservation. It offers all amenities, and smart technologies, associated with modern living, while also offering eco-living at its best.
Strategically located, near Al Reef Palace in Abu Dhabi, Hydra Village Abu Dhabi is a residential community surrounding a total area of 950,000 square metres, with 2500 well-furnished villas, and 17 residential apartment blocks.
The units are featured with excellent amenities, including schools, mosques, clinic, and retail units that make the community a self-sufficient family destination.
Labels: Abu Dhabi, Construction Projects, eco-friendly
Major property developers in Abu Dhabi reports decline in profits
Saturday, January 31, 2009
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Abu Dhabi property market, which so far was able to cope with the pressure of global slowdown, is slowly beginning to feel the heat, with its two major property developers, the Aldar Properties and Sorouh Real Estate, witnessing considerable decrease in profit during the fourth quarter of 2008.
This fact emphasizes that the impact of global credit crisis has been felt on the capital's real estate sector too. Although Dubai has been seeing several layoffs and delays ever-since the end of summer, Abu Dhabi has remained immune to the turmoil. Now, with sales almost coming to a standstill, the prices of properties too are declining, and developers are reconsidering their plans and focusing on construction.
An analyst at EFG-Hermes, Sana Kapadia, said that both Aldar and Sorouh feels are the most important thing is to have the resources to implement in today's environment. So even if they don’t make much sales this year, they will continue to gain revenues as they begin delivering units.
Sorouh is the second largest property developer in Abu Dhabi. The quarterly profits of Sorouh fell 94 percent during the final quarter of 2008. The announcement follows, the report of fourth-quarter profits by Aldar, the largest developer in Abu Dhabi, whose, profits had dropped 89 percent, after focusing to stay away from selling.
Both companies had reported major increase in profit due to record sales during the first three quarters, but, executives in the companies felt that this year would be more challenging, as they were making necessary preparations to complete the projects.
Sorouh has strengthened its cash reserves, so as to guarantee its ability to complete the announced projects. About Dh.6.8bn of cash reserves in the company have been earmarked for construction and infrastructure of projects.
Sorouh is renowned for its major projects such as the Shams Abu Dhabi development on Reem Island, which is one of the tallest structures in the emirate and Lulu Island, is another major project. Sorouh is also focusing on construction of affordable housing for middle-income sector, hoped to meet high demand this year.
Aldar too revealed that its income in the fourth quarter of last year, remained low, as it had stopped sales operations during that part of the year, due to a changed market. The company is also re-considering few aspects of its construction projects.
A UK-joint venture company, Aldar Laing O'Rourke, has laid off 320 skilled employees to "re-align" the company based on changing economic environment. Aldar also recently said that it plans to increase its rental holdings to guarantee its income during the coming months.
An analyst at Shuaa Capital, has said that the companies will continue to suffer from the decrease in sales and property prices and increasing financing costs this year, but, the sector as a whole, will still be stronger, when compared to Dubai. Unlike in Dubai, Abu Dhabi will not see a decline in population owing to financial crisis, and the housing sector here is basically still undersupplied.
The analyst predicts that although the market conditions are tough right now, and this would continue to be so during the next two quarters, an improvement could be expected towards end of the year, with the marketing present more opportunities for Sorouh and Aldar.
This fact emphasizes that the impact of global credit crisis has been felt on the capital's real estate sector too. Although Dubai has been seeing several layoffs and delays ever-since the end of summer, Abu Dhabi has remained immune to the turmoil. Now, with sales almost coming to a standstill, the prices of properties too are declining, and developers are reconsidering their plans and focusing on construction.
An analyst at EFG-Hermes, Sana Kapadia, said that both Aldar and Sorouh feels are the most important thing is to have the resources to implement in today's environment. So even if they don’t make much sales this year, they will continue to gain revenues as they begin delivering units.
Sorouh is the second largest property developer in Abu Dhabi. The quarterly profits of Sorouh fell 94 percent during the final quarter of 2008. The announcement follows, the report of fourth-quarter profits by Aldar, the largest developer in Abu Dhabi, whose, profits had dropped 89 percent, after focusing to stay away from selling.
Both companies had reported major increase in profit due to record sales during the first three quarters, but, executives in the companies felt that this year would be more challenging, as they were making necessary preparations to complete the projects.
Sorouh has strengthened its cash reserves, so as to guarantee its ability to complete the announced projects. About Dh.6.8bn of cash reserves in the company have been earmarked for construction and infrastructure of projects.
Sorouh is renowned for its major projects such as the Shams Abu Dhabi development on Reem Island, which is one of the tallest structures in the emirate and Lulu Island, is another major project. Sorouh is also focusing on construction of affordable housing for middle-income sector, hoped to meet high demand this year.
Aldar too revealed that its income in the fourth quarter of last year, remained low, as it had stopped sales operations during that part of the year, due to a changed market. The company is also re-considering few aspects of its construction projects.
A UK-joint venture company, Aldar Laing O'Rourke, has laid off 320 skilled employees to "re-align" the company based on changing economic environment. Aldar also recently said that it plans to increase its rental holdings to guarantee its income during the coming months.
An analyst at Shuaa Capital, has said that the companies will continue to suffer from the decrease in sales and property prices and increasing financing costs this year, but, the sector as a whole, will still be stronger, when compared to Dubai. Unlike in Dubai, Abu Dhabi will not see a decline in population owing to financial crisis, and the housing sector here is basically still undersupplied.
The analyst predicts that although the market conditions are tough right now, and this would continue to be so during the next two quarters, an improvement could be expected towards end of the year, with the marketing present more opportunities for Sorouh and Aldar.
Labels: Abu Dhabi, Aldar, Market Trends, Sorouh
Poor response to Abu Dhabi Property Show IREIS 2009
Thursday, January 29, 2009
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The Abu Dhabi Real Estate and Investment Show at the National Exhibition Center, unveiled yesterday, witnessed a rather empty scene, except for few exhibitors who were seen peeking at each other's stalls.
This is a total contrary to the frenzied buying seen during other property shows in the same venue, when the housing boom was at its peak last year.
The IREIS 2009 Property Show, which included participation of all major property developers in the region, including Aldar and Hydra, saw only a few scattered buyers, a scene completely different to the Cityscape Exhibition, when people were constantly selling to the packed crowds.
A Partner in an estate agency, who spoke to the media about the event, expressed his shock and said that several projects that the developers exhibited in this show were already revealed to the public earlier, while, the new projects being announced are long-term future developments, which seems vague and without proper schedules.
He added that the opportunities for investing, however, still exists, but is meant only for cash buyers.
Property transactions have been badly hit, with the drying up of cheap credits and banks demanding higher mortgage deposits from borrowers. These high interest rates by banks are adding pressure on existing borrowers who had taken large home loans when rates were lower. To add to the misery, this happens when people are worried about their job security on the other side. The prices of housing in Dubai softened towards last quarter of 2008.
The Commercial Director, Hydra Properties, Mohamad al Habech, said that while there is no dearth for number of developers, there are very few buyers.
"We have been badly affected by the current financial situation. Several visitors here seem to be existing investors who are trying to catch a feel of the current market situation, so that they can appreciate the worth of their investments. People are drawn in by the curiosity factor, but, we do not expect a great deal of sales to happen," he said, when speaking about the event.
The Director-Marketing & Sales of Plus Properties revealed that his firm has stopped bringing out new projects and are focusing on completing the existing ones.
He said that his company is participating in the show, not to focus on sales alone, but also to show that the company is still operating, confirming that the firm is here for long-term, regardless of whatever happens in the market.
Pointing to the positive side of things, he said that the crisis is in the international property market, and Abu Dhabi is only experiencing the ripples of the problems happening elsewhere and the economy here is still healthy.
He also said that his company has no loans to maintain, and there is the added advantage of lower construction costs and lower prices of raw materials.
Labels: Abu Dhabi, Property-show
IREIS 2009 to kick-start in Abu Dhabi on 27th Jan'09
Tuesday, January 27, 2009
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The Abu Dhabi Real Estate and Investment Show - IREIS 2009 will be unveiled to the public at the Abu Dhabi National Exhibition Center on 27th January 2009. Organized by Dome Exhibitions, the show will be held under the patronage of H.H. Sheikh Dr. Sultan bin Khalifa bin Zayed Al Nahyan.
The Director of Dome Exhibitions, Antonie Georges, said that IREIS 2009 is particularly important, as it one of the first major real estate shows to be held, following the global turmoil and its economic repercussions worldwide.
About 100 companies from 10 countries are participating in the event, and the area where the event is being hosted has also been expanded by 25 percent. About 50,000 invitations have been sent out to property developers, banks, real estate brokers, and financing establishments and personalities to participate in this big event.
George said that Dome Exhibitions is organizing a seminar, considering the global financial situation, and the real estate markets in the region, wherein several property experts, and representatives of brokerage firms and other financial institutions will highlight about the recent developments in property sector in the region and globally.
George, when speaking about the UAE economy, said that the economy remains strong with the measures taken by Federal Government and Central Bank to ensure enough liquidity into banks, allowing them to function normally and restrict the impact of global economic turmoil.
Property companies in the UAE are going ahead with their projects and there are no projects being scraped off in Abu Dhabi, as the financing companies have come forward to fund their clients.
George said that IREIS 2009 at this time is extremely important as it seems promising to investors who seek to re-enter the market. The current market is the best opportunity to invest in a new property, as indications are that prices would decline further, and economies in the Gulf and UAE would continue to grow, even when other economies record zero growth or even contract.
Among the sponsors of IREIS 2009 are the Platinum sponsor, Tameer, Real 21, Plus Properties, Sorough and Falconcity of Wonders.
The Chairman of Plus Properties, George Chehwane, said that there is a tremendous growth in the past three years and this would continue at a steady pace. The government of UAE is taking measures to deal with the current financial turmoil, and this serves as an incentive to investors for continued growth.
Shawqi Kurkumaz, Director of Real 21 for real estate brokerage, said that the market is gathering momentum and there are positive signals about UAE economy too. The demand will continue as long as supply falls short of strong demand and economy of UAE.
The Director of Dome Exhibitions, Antonie Georges, said that IREIS 2009 is particularly important, as it one of the first major real estate shows to be held, following the global turmoil and its economic repercussions worldwide.
About 100 companies from 10 countries are participating in the event, and the area where the event is being hosted has also been expanded by 25 percent. About 50,000 invitations have been sent out to property developers, banks, real estate brokers, and financing establishments and personalities to participate in this big event.
George said that Dome Exhibitions is organizing a seminar, considering the global financial situation, and the real estate markets in the region, wherein several property experts, and representatives of brokerage firms and other financial institutions will highlight about the recent developments in property sector in the region and globally.
George, when speaking about the UAE economy, said that the economy remains strong with the measures taken by Federal Government and Central Bank to ensure enough liquidity into banks, allowing them to function normally and restrict the impact of global economic turmoil.
Property companies in the UAE are going ahead with their projects and there are no projects being scraped off in Abu Dhabi, as the financing companies have come forward to fund their clients.
George said that IREIS 2009 at this time is extremely important as it seems promising to investors who seek to re-enter the market. The current market is the best opportunity to invest in a new property, as indications are that prices would decline further, and economies in the Gulf and UAE would continue to grow, even when other economies record zero growth or even contract.
Among the sponsors of IREIS 2009 are the Platinum sponsor, Tameer, Real 21, Plus Properties, Sorough and Falconcity of Wonders.
The Chairman of Plus Properties, George Chehwane, said that there is a tremendous growth in the past three years and this would continue at a steady pace. The government of UAE is taking measures to deal with the current financial turmoil, and this serves as an incentive to investors for continued growth.
Shawqi Kurkumaz, Director of Real 21 for real estate brokerage, said that the market is gathering momentum and there are positive signals about UAE economy too. The demand will continue as long as supply falls short of strong demand and economy of UAE.
Labels: Abu Dhabi, Property-show
BID makes swift progress with its Bawabat Al Sharq project
Thursday, January 15, 2009
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Baniyas Investment and Development Company (BID), the investment arm of Bani Yas Sports Club, has reported considerable progress in its Dh.3billion Bawabat Al Sharq project, the mixed-use development community located in Bani Yas of Abu Dhabi.
The Phase I of the project is likely to be completed towards third quarter of 2010, and has already cross 15 percent of its completion landmark, with other infrastructure plans already underway.
The company has also revealed that 90 percent of the Phase I of the project, totaling to 190 units has already been sold and leased.
The CEO of BID, Wael Tawil, when speaking about the progress of the project, revealed that following the successful sale and lease of Phase I of Bawabat Al Sharq, the contracts for various other components of the project have already been awarded and the company is now carrying on with planning stages for Phase II.
Being the ideal representation for a family living environment, Bawabat al Sharq offers world-class amenities in healthcare, education, sports and entertainment.
BID is carrying on discussions with major financial institutions to offer effective financing options for all customers, due to slowdown in property financing in the market.
Being one of the top contracting companies, BID has appointed 'Target Contracting' as contractors for Phase I of the project. The landscaping design contract for the project has been awarded to Maunsell/AECOM, while the overall design and supervision contract has been awarded to World Planner Consultant Engineers. The company is carrying on talks to finalize the contracts for amenities in entertainment avenues.
Spreading across 108 hectares of land, Bawabat al Sharq comprises international school, nursery, health club, medical center, and specialty training clubs, apart from international hypermarket, 16 food courts, cinemas, pharmacies and coffee shops.
Established in 2005, Bani Yas Investment & Development Company (BID) is a majority-owned subsidiary of Bani Yas Sports Club, and focuses on development, investment and management of real estate projects.
The Phase I of the project is likely to be completed towards third quarter of 2010, and has already cross 15 percent of its completion landmark, with other infrastructure plans already underway.
The company has also revealed that 90 percent of the Phase I of the project, totaling to 190 units has already been sold and leased.
The CEO of BID, Wael Tawil, when speaking about the progress of the project, revealed that following the successful sale and lease of Phase I of Bawabat Al Sharq, the contracts for various other components of the project have already been awarded and the company is now carrying on with planning stages for Phase II.
Being the ideal representation for a family living environment, Bawabat al Sharq offers world-class amenities in healthcare, education, sports and entertainment.
BID is carrying on discussions with major financial institutions to offer effective financing options for all customers, due to slowdown in property financing in the market.
Being one of the top contracting companies, BID has appointed 'Target Contracting' as contractors for Phase I of the project. The landscaping design contract for the project has been awarded to Maunsell/AECOM, while the overall design and supervision contract has been awarded to World Planner Consultant Engineers. The company is carrying on talks to finalize the contracts for amenities in entertainment avenues.
Spreading across 108 hectares of land, Bawabat al Sharq comprises international school, nursery, health club, medical center, and specialty training clubs, apart from international hypermarket, 16 food courts, cinemas, pharmacies and coffee shops.
Established in 2005, Bani Yas Investment & Development Company (BID) is a majority-owned subsidiary of Bani Yas Sports Club, and focuses on development, investment and management of real estate projects.
Labels: Abu Dhabi, Construction Projects
RAKBANK strikes deal with Sorouh, Aldar for mortgage finance in Abu Dhabi
Thursday, December 25, 2008
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With the RAKBANK announcing new mortgage finance service schemes for several existing and upcoming projects in the city, potential buyers stand a good chance of owning their dream home in Abu Dhabi.
The RAKBANK, together with Aldar Properties and Sourouh Real Estate, have entered into a deal, wherein the bank, being a strategic mortgage partner for the developers, is offering upto 90 percent mortgage finance and 25-year loan tenure for all their residential freehold properties in Abu Dhabi.
The projects include the Al RAha Beach and Yas Island by Aldar, and Shams project on Reem Island by Sorouh, and the iconic architecture underway for the Sun Tower, Gate district, Alghadeer and Sky Tower.
According to Graham Honeybill, the General Manager of RAKBANK, the announcements of several unique landmark projects, multi-billion dirham investments and growing demand for housing, has made the Capital a property hotspot in the Gulf region, and therefore, mortgage finance provider becomes the focus area.
RAKBANK, the National Bank of Ras Al-Khaimah, was one of the first conventional banks to offer mortgage finance in the UAE four years ago, and has thereafter built a reputation in providing fast, flexible mortgage services in the UAE. This new partnership deal is the latest by the bank, although it is already offering mortgage finance services to several major residential projects developed by other developers such as Nakheel, Emaar, Emaar Bawadi, Mizin, Dubai Properties, ETA Star and Deyaar.
Both Sorouh Real Estate and Aldar are two largest property developers with about Dh.60bn and Dh.45bn worth developments in hand. Aldar owns 51mn square meters of land in Abu Dhabi, while Sorouh is undertaking development of 22million square meters of land in the city.
The RAKBANK, together with Aldar Properties and Sourouh Real Estate, have entered into a deal, wherein the bank, being a strategic mortgage partner for the developers, is offering upto 90 percent mortgage finance and 25-year loan tenure for all their residential freehold properties in Abu Dhabi.
The projects include the Al RAha Beach and Yas Island by Aldar, and Shams project on Reem Island by Sorouh, and the iconic architecture underway for the Sun Tower, Gate district, Alghadeer and Sky Tower.
According to Graham Honeybill, the General Manager of RAKBANK, the announcements of several unique landmark projects, multi-billion dirham investments and growing demand for housing, has made the Capital a property hotspot in the Gulf region, and therefore, mortgage finance provider becomes the focus area.
RAKBANK, the National Bank of Ras Al-Khaimah, was one of the first conventional banks to offer mortgage finance in the UAE four years ago, and has thereafter built a reputation in providing fast, flexible mortgage services in the UAE. This new partnership deal is the latest by the bank, although it is already offering mortgage finance services to several major residential projects developed by other developers such as Nakheel, Emaar, Emaar Bawadi, Mizin, Dubai Properties, ETA Star and Deyaar.
Both Sorouh Real Estate and Aldar are two largest property developers with about Dh.60bn and Dh.45bn worth developments in hand. Aldar owns 51mn square meters of land in Abu Dhabi, while Sorouh is undertaking development of 22million square meters of land in the city.
Property values in Abu Dhabi likely to grow
Saturday, December 13, 2008
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Despite the global economic conditions and the consequent slowdown in UAE property sector, the property values in Abu Dhabi will keep growing in the short-term, revealed the recent research by the Citigroup.
Being the second largest Arab economy, next only to Saudi Arabia, the UAE has plenty of current surpluses and can easily depend on sovereign wealth to cover the financial cost of property projects, despite the poor investment returns in 2008, the Citigroup explained.
But unlike in Dubai, Abu Dhabi outstrips supply for all segments of property sector. At present scarcity of prime office space has led to increase in rents by 40 percent during the period 2005-06, by 10 percent in 2006-07, and 14 percent in 2008.
Despite the huge rental increase, the average prime rates are competitive, considering the global values. The rents in Abu Dhabi are still behind London and Hong Kong, Singapore, Moscow and Tokyo.
The supply in residential sector is expected to surpass demand by 2012. According to Citigroup, the extremely low vacancy rates, high price and rental increases of properties, would continue to boost sales and rents in residential segment. Even the retail sector can relax and enjoy solid increase as long as the existing supply stock lasts.
Pointing to the "Plan Abu Dhabi 2030", which briefs the development framework for Abu Dhabi, the Citigroup noted that is a prime tourist destination with a huge mix of leisure tourists and business travelers. Also, the national spending power contributes to the retail market in Abu Dhabi, as against Dubai which depends on tourist inflows.
Citigroup has the third largest GDP per capita, and given the strong growth forecasts and oil surpluses, it seems that national spending levels seem to continue to rise, the Citigroup explained.
Being the second largest Arab economy, next only to Saudi Arabia, the UAE has plenty of current surpluses and can easily depend on sovereign wealth to cover the financial cost of property projects, despite the poor investment returns in 2008, the Citigroup explained.
But unlike in Dubai, Abu Dhabi outstrips supply for all segments of property sector. At present scarcity of prime office space has led to increase in rents by 40 percent during the period 2005-06, by 10 percent in 2006-07, and 14 percent in 2008.
Despite the huge rental increase, the average prime rates are competitive, considering the global values. The rents in Abu Dhabi are still behind London and Hong Kong, Singapore, Moscow and Tokyo.
The supply in residential sector is expected to surpass demand by 2012. According to Citigroup, the extremely low vacancy rates, high price and rental increases of properties, would continue to boost sales and rents in residential segment. Even the retail sector can relax and enjoy solid increase as long as the existing supply stock lasts.
Pointing to the "Plan Abu Dhabi 2030", which briefs the development framework for Abu Dhabi, the Citigroup noted that is a prime tourist destination with a huge mix of leisure tourists and business travelers. Also, the national spending power contributes to the retail market in Abu Dhabi, as against Dubai which depends on tourist inflows.
Citigroup has the third largest GDP per capita, and given the strong growth forecasts and oil surpluses, it seems that national spending levels seem to continue to rise, the Citigroup explained.
Labels: Abu Dhabi, Property Prices
Major Abu Dhabi firms join together to launch new mortgage finance provider
Friday, November 28, 2008
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Major investment, real estate and finance companies in Abu Dhabi have joined together to announce the launch of Abu Dhabi Finance, a new entity formed to serve the real estate market of the emirate, and to serve the demand for mortgage finance by consumers.
With a capital of Dh.500million, the objective of the company is to help Abu Dhabi meet its long-term strategies of sustainable economic growth by financing the growing demand for real estate.
Following one year of planning, Abu Dhabi Finance has been launched with a complete range of mortgage products to appeal to a wide range of borrowers.
The Chairman of Abu Dhabi Finance, Ali Eid Al Mehairi, said "The huge demand for real estate in Abu Dhabi implies that there would be greater demand for mortgage financing. Our team has been working towards creating attractive, innovative mortgage products to meet requirements of all types of homeowners."
Abu Dhabi Finance plan to offer mortgages with a range of benefits, including loan-to-value ratios of up to 85 percent, flexible payment methods, loan terms between three and thirty years, and debt service ratios of up to 55 percent.
The Chief Executive of Abu Dhabi Finance, Philip Ward, said "We are aiming to become the leading supplier of mortgage products. We have invested heavily in developing our products and in training our Mortgage Advisors, so that clients can rest assured about getting the right mortgage for them."
The Abu Dhabi Commercial Bank, Mubadala Development Company, Aldar, Tourism Development and Investment Company (TDIC) and Sorouh Real Estate PJSC are the shareholders of the new finance company, which will initially offer mortgages toThe companies are estimated to represent about more than two-thirds of the new units under-construction in Abu Dhabi.
buyers in the emirate.
With a capital of Dh.500million, the objective of the company is to help Abu Dhabi meet its long-term strategies of sustainable economic growth by financing the growing demand for real estate.
Following one year of planning, Abu Dhabi Finance has been launched with a complete range of mortgage products to appeal to a wide range of borrowers.
The Chairman of Abu Dhabi Finance, Ali Eid Al Mehairi, said "The huge demand for real estate in Abu Dhabi implies that there would be greater demand for mortgage financing. Our team has been working towards creating attractive, innovative mortgage products to meet requirements of all types of homeowners."
Abu Dhabi Finance plan to offer mortgages with a range of benefits, including loan-to-value ratios of up to 85 percent, flexible payment methods, loan terms between three and thirty years, and debt service ratios of up to 55 percent.
The Chief Executive of Abu Dhabi Finance, Philip Ward, said "We are aiming to become the leading supplier of mortgage products. We have invested heavily in developing our products and in training our Mortgage Advisors, so that clients can rest assured about getting the right mortgage for them."
Shortage in supply of housing to ease out within 4 yrs in Abu Dhabi
Tuesday, November 11, 2008
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The demand for Abu Dhabi property units will be met in four years time, said Urban Planning Council General Manager, Falah Al Ahbabi.
Speaking to delegates at MEED Abu Dhabi Conference, Al Ahbabi said that the economy is growing at a rapid pace, but the infrastructure and buildings in Abu Dhabi will take atleast four years.
The developers are being pressurized and we are confident about solving the issue. The prices will stabilize and supply would come online, he said.
Shortage in supply of units is a fact, and has been an issue over the past two years. This shortage would continue for next 3-4 years, by which the demand and supply would meet, agreed Al-Ahbabi.
As per last month's report by Abu Dhabi Chamber of Commerce, Abu Dhabi has a shortage of minimum 28,000 housing units this year, and this has pushed up rents, and the total demand for units would touch 70,000 by 2010.
The population of Abu Dhabi is currently more than a million and has been growing at 7 percent a year.
Speaking to delegates at MEED Abu Dhabi Conference, Al Ahbabi said that the economy is growing at a rapid pace, but the infrastructure and buildings in Abu Dhabi will take atleast four years.
The developers are being pressurized and we are confident about solving the issue. The prices will stabilize and supply would come online, he said.
Shortage in supply of units is a fact, and has been an issue over the past two years. This shortage would continue for next 3-4 years, by which the demand and supply would meet, agreed Al-Ahbabi.
As per last month's report by Abu Dhabi Chamber of Commerce, Abu Dhabi has a shortage of minimum 28,000 housing units this year, and this has pushed up rents, and the total demand for units would touch 70,000 by 2010.
The population of Abu Dhabi is currently more than a million and has been growing at 7 percent a year.
Labels: Abu Dhabi, housing, Market Trends
Region's first LEED Platinum certified Eco Towers unveiled at Abu Dhabi
Friday, October 31, 2008
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An Abu Dhabi-based property development company, Connection Real Estate, has launched a Dh.1bn mixed-use sustainable project in the capital, the 'Eco Towers', which comprise luxury apartments and commercial property. The property, which claims to meet the environmental challenges, also offers essential residential property in Abu Dhabi.
An Abu Dhabi-based property development company, Connection Real Estate, has launched a Dh.1bn mixed-use sustainable project in the capital, the 'Eco Towers', which comprise luxury apartments and commercial property. The property, which claims to meet the environmental challenges, also offers essential residential property in Abu Dhabi.Located within the prestigious community of Dhanet Abu Dhabi, the Eco Towers are the first mixed-use towers in the Middle East with LEED (Leadership in Energy and Environmental design) Platinum Certification.
LEED is an internationally recognized green building rating system that establishes environmentally sustainable construction criteria. It brings about a common standard of building designs that minimize risks on the environment and increases awareness among consumers about the benefits of green construction. Platinum is the highest level.
The plots cover an area of 787,000 square feet and are located along the Airport Road. The commercial tower is aimed to offer about 36,485 square meters of office space, while the residential tower will offer 36,685 square meters for healthy living.
The 23 storey twin towers will be cost-effective, safe for environment, and healthy to live and work in, with air purification systems, toxic-free materials, renewable energy, dual glaze windows, water efficiency, waste reduction and other eco-friendly features incorporated. The other noteworthy aspects about the tower are the Smart Home Technology enabled, linked underground car park and proximity to the Holiday Inn at Dhanet Abu Dhabi.
Abed Al Zeera, the Chairman of the Board of Directors, Connection Real Estate, revealed that the leveling work on the two plots where the project is likely to come up, will begin within a month.
The towers will be ready by 2011.
The towers will be ready by 2011.
"We are currently holding discussions with banks for financing of the project. The project will receive 70 percent finance from regional banks from the Gulf States," Al Zeera said.
The starting prices proposed for the towers are yet to be announced. The project aims to meet the residential and commercial property scarcity in Abu Dhabi, as there is a huge demand for this sector from the end-users, Al Zeera explained.
A senior executive, associated with the project, when speaking about Eco Towers, mentioned that the towers advocate the rapidly emerging consensus that green buildings are more healthy and less expensive to operate, and is more appealing to end-users and the public, and on the whole, more profitable.
Labels: Abu Dhabi, eco-friendly
Mayadeen launches Dh1.6bn Aurora in Abu Dhabi
Wednesday, October 29, 2008
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National Ranges Company (Mayadeen) has launched Aurora, the Dh.1.6bn landmark project in Abu Dhabi, which is now open for sales.
Located along the Shams on Al Reem Island, the project includes two residential towers of 53 storey each, standing high at 208 meters. The towers house 960 apartments on the whole, ranging from single bedroom to four bedrooms, penthouses and duplex rooms.
The project will also include a 14 storey commercial tower, offering about 112,000 square feet of commercial space. A canal promenade and retail space, apart from 12-storey parking facility to accommodate 1674 cars will also be a part of the project.
The Chief Executive of Mayadeen, Ali Al Attar, said that the initial phase of shoring and piling work has been completed and the company is now planning its second phase, which includes working on foundation structure.
Mayadeen has signed five new contractors for working on the project, and the work is progressing as planned. This venture is one of the largest of its kind in the region, and is hoped to be an all-encompassing real estate project that caters to all facets of day-to-day life.
This project is a milestone to Mayadeen's journey in establishing itself as major player in the property development industry across the region, Ali Attar said.
Al Attar pointed out that following introduction of new laws and establishment of several local and foreign companies in the market, Abu Dhabi is witnessing huge demand in its residential sector, which is still surpassing the supply. The Abu Dhabi property market is continuing to witness large number of investments, and this trend is likely to continue until the next decade.
Shams Abu Dhabi is all set to be a part of what is known as "New Abu Dhabi". The concept is aimed to include several hospitals, schools, hotels, retail outlets, family entertainment venues, canals and parks, creating a self-sustained city, incorporating world-class master planning practices and further extending lush greenery into Abu Dhabi's landscape.
Labels: Abu Dhabi, Al Reem Island, Sales
Abu Dhabi to emulate Dubai in introduction of real estate laws
Monday, October 20, 2008
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With an aim to introduce major transformations in Abu Dhabi property market, Abu Dhabi plans to introduce real estate regulations as that prevailing in its neighbouring emirate Dubai.
Al Tamini, the Dubai-based Law firm, is on discussions with the Department for Municipal Affairs in Abu Dhabi, which handles real estate legislation for the emirate. The firm has suggested introduction of strata, escrow and broker laws, to improve regulation, and provide investors the much-required confidence when investing in the region.
During the year 2002, Dubai introduced freehold ownership of property in chosen areas, sparking its six-year real estate boom. The proposed introduction of laws would essentially focus on the change in freehold ownership of land.
The Associate Lawyer at Al Tamini's Abu Dhabi office, Walter Robinson, said that the investors comfort was the most important and that it is vital for the investors to know that they are investing in a property that has a real estate title deed, the system of ownership of which, is recognized on par with the best international practices.
According to Robinson introduction of freehold ownership rights is a vital and fundamental change to property laws in Abu Dhabi.
"An Escrow Law protects investors and ensures that developers actually deliver projects. This legislation is being considered by Abu Dhabi to cover residential and commercial properties," he revealed.
Al Tamini, the Dubai-based Law firm, is on discussions with the Department for Municipal Affairs in Abu Dhabi, which handles real estate legislation for the emirate. The firm has suggested introduction of strata, escrow and broker laws, to improve regulation, and provide investors the much-required confidence when investing in the region.
During the year 2002, Dubai introduced freehold ownership of property in chosen areas, sparking its six-year real estate boom. The proposed introduction of laws would essentially focus on the change in freehold ownership of land.
The Associate Lawyer at Al Tamini's Abu Dhabi office, Walter Robinson, said that the investors comfort was the most important and that it is vital for the investors to know that they are investing in a property that has a real estate title deed, the system of ownership of which, is recognized on par with the best international practices.
According to Robinson introduction of freehold ownership rights is a vital and fundamental change to property laws in Abu Dhabi.
"An Escrow Law protects investors and ensures that developers actually deliver projects. This legislation is being considered by Abu Dhabi to cover residential and commercial properties," he revealed.
Labels: Abu Dhabi, Property Law
World's first Michael Schumacher World Champion Tower in Abu Dhabi
Wednesday, October 08, 2008
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The Central Business District of Abu Dhabi's Reem Island will be home to the World's first Micahel Schumacher World Champion Tower (MSWCT), which was launched yesterday.
The wharf tower, which will emerge from the sea, will be wonderfully integrated with the water on the seafront and will comprise a luxurious marina.
The Central Business District of Abu Dhabi's Reem Island will be home to the World's first Micahel Schumacher World Champion Tower (MSWCT), which was launched yesterday.The wharf tower, which will emerge from the sea, will be wonderfully integrated with the water on the seafront and will comprise a luxurious marina.
Developed by the Marasi and PNYG:COMPANY, the tower will be an iconic landmark, symbolizing a blend of human tenacity with high technology, which motivated Michael Schumacher to his sporting achievements.
The CEO of Marasi, Michael Kutschenreuter, said that Marasi will specialize in offering solutions for people who intend to combine together their residential location and immediate access to their yachts.
The MSWCT cutting edge technology, coupled with the inspiring design, will form a unique living community with a spectacular backdrop, he said.
The MSWCT Reem Island is the first among several such projects planned by Marasi. It is hoped to be one of the most prestigious residential addresses in the world, representing a true blend of wharf concept with unprecedented luxury living.
PNYG holds exclusive rights to Michael Schumacher Branded Luxury Real Estate. MSWCT includes values and qualities that make Michael Schumacher successful as racing driver. Every feature of the building technique used, to the smallest details contained within, has been so designed, that it reflects the standards which make his racing career so successful.
The MSWCT will be the first of seven such towers planned to be built across the world. The towers would symbolize each of the seven Formula One (F1) World Championship titles won by Michael Schumacher during his career.
The ecological impact of the tower will be limited. Even to achieve a small carbon footprint, Marasi will be employing the most conscientious and advanced methods available.
Deyaar has been appointed as the exclusive sales agent for MSWCT. The CEO of Deyaar, Markus Giebel, said that being the regions fastest growing developer, Deyaar is delighted to be associated with this coveted project. This unique tower offers Deyaar the perfect opportunity to enter the iconic building market.
Labels: Abu Dhabi, Al Reem Island, Deyaar, Luxury Homes
Housing shortage in Abu Dhabi likely to shoot up rents, inflation
Tuesday, October 07, 2008
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A shortage of about 28000 housing units in Abu Dhabi is likely this year, with the rents forging up, adding to inflation in the UAE capital.
The current projects that are nearing completion will form only 20 percent of the required housing.
As per the report from Chamber of Commerce, the shortage in housing units will lead to increase in rents, which constitute the largest portion of consumer spending and is estimated to be not more than 40 percent, leading inflation to reach its maximum heights, the report said.
The report said that the housing crisis is gaining momentum, with the total demand for units bound to rise by 70,000 towards 2010.
According to a senior official, Abu Dhabi is considering a possible lowering of annual cap on rent increases (from 5 percent to 3 percent) for properties.
Inflation in Abu Dhabi touched 12.9 percent during the second quarter, from 11.5 percent during the first quarter. This is as per the preliminary data by the Abu Dhabi Planning Department last month.
The body then retracted the data, saying that it was working on new consumer price index. Dubai has introduced an annual rent cap of 5 percent this year.
The current projects that are nearing completion will form only 20 percent of the required housing.
As per the report from Chamber of Commerce, the shortage in housing units will lead to increase in rents, which constitute the largest portion of consumer spending and is estimated to be not more than 40 percent, leading inflation to reach its maximum heights, the report said.
The report said that the housing crisis is gaining momentum, with the total demand for units bound to rise by 70,000 towards 2010.
According to a senior official, Abu Dhabi is considering a possible lowering of annual cap on rent increases (from 5 percent to 3 percent) for properties.
Inflation in Abu Dhabi touched 12.9 percent during the second quarter, from 11.5 percent during the first quarter. This is as per the preliminary data by the Abu Dhabi Planning Department last month.
The body then retracted the data, saying that it was working on new consumer price index. Dubai has introduced an annual rent cap of 5 percent this year.
Capitala awards construction contract for Dh1.9bn Rihan Heights
Thursday, September 25, 2008
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The Abu Dhabi-based developer, Capitala, has announced that it has awarded the construction contract of first phase of its Arzanah project, the Dh.1.9bn 'Rihan Heights'.
The construction contract has been awarded to a joint venture partnership between Sunway Construction (SunCon), part of international Sunway Group, a leading Malaysian-based multi-disciplinary conglomerate and Silver Coast Construction & Boring Est., a leading Abu Dhabi-based contractor.
The 25-month main construction contract includes all construction activities, and the associated electrical, mechanical and plumbing works.
Located at the gateway point on the Abu Dhabi Island, the $6bn Arzanah project is an integrated, mixed-use development spreading across 1.4mn square feet bordering the Zayed stadium. It offers a unique blend of quality residential properties with sports, leisure and retail amenities which focus on promoting an active urban lifestyle for its residents and community.
Rihan Heights comprises five residential towers, with 14 exclusive villas and 854 apartments. The enabling works have already begun and piling is completed a month ahead of schedule.
The Acting Chief Executive Officer of Capitala, Heang Fine Wong, said "This is a milestone for both Capitala and our major project Arzanah. With the enabling works complete ahead of schedule, and main construction works due to commence in November, we have already achieved a significant advantage."
Rihan Heights is progressing on track, and the gradual handover of residences to buyers are expected during first quarter of 2011, he added.
Labels: Abu Dhabi, New Contracts
ADIH to launch $7bn worth mixed-use residential, retail project series
Friday, September 12, 2008
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The Abu Dhabi Investment House (ADIH) has announced the launch of new Dh.7.36bn realty project in the UAE capital, towards end of this year. The property, 'Porta Moda Abu Dhabi' would represent a three-year old entry by the company into the UAE property sector.
'Porta Moda' is the brand name of $7bn worth series of mixed-use residential and retail projects by ADIH, which focuses on fashion, furniture, jewelry, and luxury living from both retail and academic aspects to form style and design hubs in select emerging markets.
Being the first of its kind, to bring in the 'Style City' concept, this mixed-use development includes residential and retail components that lay emphasis on fashion and style. The city will feature grand fashion district with premium luxury brands in fashion, jewelry and interior design fields. An educational district containing institutions for the same, apart from museums and exhibition centers, and residential and leisure district with studios, luxury villas, townhouses, cafes, renowned restaurants, boutique hotels and spas.
The company has signed agreements with Emirates International Properties for creating Porta Moda Abu Dhabi, and with the Gulf Finance House for forming properties in Morocco and in Tunisia.
The Managing Director of ADIH, Rashad Yusuf Janahi, said, the company is all set to announce the project in Abu Dhabi by end of the year, under the theme Porta Moda, and the size of the project is about $2billion.
The concept will also be implemented in Tunisia, Morocco, Qatar and India, he added. The Porta Modas being planned around the world are being done on par with high international standards. Studies have indicated that there is a growing interest and trend among young adults to study aesthetics and art. With Style City being within their geographic reach, they can now gain education and training at the hands of international talents and expertise.
Developments in property sector these days are being driven by demand for more housing units in towns and cities due to growing urbanization in these countries, high disposable incomes, burgeoning middle class, easy availability of housing finance at cheaper rates and tax incentives. With such a combination of factors, Porta Moda offers unprecedented investment opportunity for investors seeking to diversify their portfolio by region and industry.
Labels: Abu Dhabi, Luxury Homes, New Developments
Value of properties on Reem Island found appreciating
Monday, September 08, 2008
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Property prices on Reem Island, a commercial, residential and business project, across the coast of Abu Dhabi, have more than doubled touching Dh.3000 per square foot from Dh.950 over the past couple of months.
According to Vincent Eastone, Sales Director, Sherwoods Independent Property Consultants, a rapid growth has been noticed during the past three years, not only in terms of new projects, but also in prices of properties. The current Abu Dhabi market, although interesting, is largely led by speculation. Although speculation is healthy, as it helps attract international interest and attracts investors seeking short-term gains, it is not sustainable.
There exist high chances of creating a bubble effect. For instance, what should have been a gradual increase over a three year period is seen happening in nine-months.
A market attracting short-term investors will have a risk factor involved, as to whether the investors would remain committed and continue their future payment plans or whether they would exit.
Easton also pointed out that the situation is very much the same in Dubai. For instance, when during the first six months of this year, several people were crowding during the launch of residential units by Emaar at Downtown Burj Dubai, while only 200 to 300 units were available. There is still a huge demand for major projects, and this indicates that there is still a healthy level of interest in UAE.
When compared to other international cities, Dubai is comparatively a young market, maturing gradually. Establishment of RERA has been a major step ahead, although, there is need for more structuring regulations and transparency in the market. RERA and Dubai Land Department have done good jobs till date, Easton commented.
According to Vincent Eastone, Sales Director, Sherwoods Independent Property Consultants, a rapid growth has been noticed during the past three years, not only in terms of new projects, but also in prices of properties. The current Abu Dhabi market, although interesting, is largely led by speculation. Although speculation is healthy, as it helps attract international interest and attracts investors seeking short-term gains, it is not sustainable.
There exist high chances of creating a bubble effect. For instance, what should have been a gradual increase over a three year period is seen happening in nine-months.
A market attracting short-term investors will have a risk factor involved, as to whether the investors would remain committed and continue their future payment plans or whether they would exit.
Easton also pointed out that the situation is very much the same in Dubai. For instance, when during the first six months of this year, several people were crowding during the launch of residential units by Emaar at Downtown Burj Dubai, while only 200 to 300 units were available. There is still a huge demand for major projects, and this indicates that there is still a healthy level of interest in UAE.
When compared to other international cities, Dubai is comparatively a young market, maturing gradually. Establishment of RERA has been a major step ahead, although, there is need for more structuring regulations and transparency in the market. RERA and Dubai Land Department have done good jobs till date, Easton commented.
Labels: Abu Dhabi, Al Reem Island, Market Trends, Property Prices
Two new towers included in Adnec Capital Center Development
Sunday, August 24, 2008
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The Abu Dhabi National Exhibitions Company (ADNEC) has unveiled two distinctive commercial and residential towers by SinoGulf Investments that resemble the movement of sand dunes architecturally.
The towers form a major part of the Dh.8bn Capital Center Development, which surrounds the Abu Dhabi National Exhibition Center. Both the towers together are worth more than Dh.1bn.
Designed by Woods Bagot, world-renowned architects, the towers represent the concept of dune sand lines, when the desert breeze blows. On completion in the last quarter of 2010, the residential and commercial developments offer extensive amenities, high quality finish, high-speed elevators, ample parking and retail outlets. The residential tower also includes a sauna, gym, spa and pool, making the apartments hard to resist for investors and tenants.
Located in a prime location on the corner of Al Karama Street, adjacent to the exhibition center, the towers are ideally placed with easy access to other hospitality, commercial, entertainment, residential and transport amenities.
The Director-Business Development at Adnec, Sanjay Tanna, said that the prestigious Capital Center development located adjacent to the Exhibition Center will no doubt, cater to the demand of both commercial and residential accommodation, currently evident within the Emirate of Abu Dhabi.
Rental properties and serviced apartments in Abu Dhabi are now achieving strong growth rates and occupancy levels, although clear shortage of accommodation exists for executives.
SinoGulf Investments, established in 2003, manage an excess of $1bn investments, with development projects in Jordan, Dubai and Abu Dhabi. Recognizing the demand for high-end living, SinoGulf has formed an A grade investment opportunity. Currently, SinoGulf Investments are undertaking expressions of interest for their residential apartments.
The towers form a major part of the Dh.8bn Capital Center Development, which surrounds the Abu Dhabi National Exhibition Center. Both the towers together are worth more than Dh.1bn.
Designed by Woods Bagot, world-renowned architects, the towers represent the concept of dune sand lines, when the desert breeze blows. On completion in the last quarter of 2010, the residential and commercial developments offer extensive amenities, high quality finish, high-speed elevators, ample parking and retail outlets. The residential tower also includes a sauna, gym, spa and pool, making the apartments hard to resist for investors and tenants.
Located in a prime location on the corner of Al Karama Street, adjacent to the exhibition center, the towers are ideally placed with easy access to other hospitality, commercial, entertainment, residential and transport amenities.
The Director-Business Development at Adnec, Sanjay Tanna, said that the prestigious Capital Center development located adjacent to the Exhibition Center will no doubt, cater to the demand of both commercial and residential accommodation, currently evident within the Emirate of Abu Dhabi.
Rental properties and serviced apartments in Abu Dhabi are now achieving strong growth rates and occupancy levels, although clear shortage of accommodation exists for executives.
SinoGulf Investments, established in 2003, manage an excess of $1bn investments, with development projects in Jordan, Dubai and Abu Dhabi. Recognizing the demand for high-end living, SinoGulf has formed an A grade investment opportunity. Currently, SinoGulf Investments are undertaking expressions of interest for their residential apartments.
Labels: Abu Dhabi, Real Estate Projects
Abu Dhabi to witness Dh 200bn worth of realty investments
Tuesday, August 12, 2008
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With the Abu Dhabi government pitching in to fill up the void in supply of residential units within the Capital, the real estate investments and infrastructure in the UAE Capital, is likely to touch Dh.200bn by 2012, reveal latest studies.
The establishment of Abu Dhabi Commercial Properties, apart from various initiatives taken to fine-tune real estate regulations, is also prompting the growth of the market, which is expected to see about 140,000 housing units by the year 2013.
With the market maintaining a growth which is stronger-than-expected, Bonyan International Investment Group (Holding) L.L.C., has identified a real estate company as one with high-potential investment opportunities within the emirate, inline with its regional expansion plans.
Keeping in mind the current growth in population, which stands at seven percent per annum, the government, has increased its interest in boosting the tourism sector, coupled with continuous development and modernization of infrastructure.
The Abu Dhabi property sector is heading towards an unprecedented boom, and, being in the middle of a major economic development, this is likely to continue for the next fifteen years. The emirate has been identified by Bonyan International, as being a market with high potential to accommodate various large-scale developments with its liberal and modern growth policies.
The establishment of Abu Dhabi Commercial Properties, apart from various initiatives taken to fine-tune real estate regulations, is also prompting the growth of the market, which is expected to see about 140,000 housing units by the year 2013.
With the market maintaining a growth which is stronger-than-expected, Bonyan International Investment Group (Holding) L.L.C., has identified a real estate company as one with high-potential investment opportunities within the emirate, inline with its regional expansion plans.
Keeping in mind the current growth in population, which stands at seven percent per annum, the government, has increased its interest in boosting the tourism sector, coupled with continuous development and modernization of infrastructure.
The Abu Dhabi property sector is heading towards an unprecedented boom, and, being in the middle of a major economic development, this is likely to continue for the next fifteen years. The emirate has been identified by Bonyan International, as being a market with high potential to accommodate various large-scale developments with its liberal and modern growth policies.
Labels: Abu Dhabi, Infrastructure, Real Estate News
Work on Abu Dhabi's Hydra Avenue Towers, well ahead of schedule
Monday, August 11, 2008
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A renowned UAE-based property developer, Hydra Properties, has already completed the foundation work of their prestigious Hydra Avenue Towers project at Al Reem Island in Abu Dhabi, well ahead of schedule. Hydra Properties has stated that it has fast-tracked the progress of the project.
The Hydra Avenue Towers includes six towers, of 29 storey each, adding splendor to the City of Lights at Al Reem Island. The project is carried out by Tafsir Contracting Company, and Prime Engineering Consultancy has been appointed as the Engineering Consultants for the project.
The six skyscrapers grouped into clusters of three each, are so designed that they triumph over a podium stretching more than five floors. The towers are particularly designed to offer solace for residential needs of men and women on the move, and to provide a holistic living environment to residents. Hydra Avenue Towers also includes retail towers too, that reflect the spirit of times that we live in. The futuristic smart home technology will be deployed to ensure the required comfort and convenience to residents. Hydra Avenue Towers focuses on sustainable development and is determined to adhere to global standards in an eco-friendly space management
The CEO of Hydra Properties, Dr. Sulaiman Al Fahim, appreciating the Hydra Avenue Towers, described that it adds majesty and grandeur to Al Reem Island. The Avenue Towers is progressing so quickly, that it fills the void in the property market in Abu Dhabi, and answers the prayers of investors and those who seek luxurious and serene living spaces.
The Project Eng. Mohammad Fawzy, Head of Engineering Division, Hydra Properties, said that the project has gained momentum with successful completion of foundation works, which has taken several months for completion. The company is now shifting focus on finishing the pillar work, as quickly as possible.
The Hydra Avenue Towers has been scheduled for completion by 2011.
The Hydra Avenue Towers includes six towers, of 29 storey each, adding splendor to the City of Lights at Al Reem Island. The project is carried out by Tafsir Contracting Company, and Prime Engineering Consultancy has been appointed as the Engineering Consultants for the project.
The six skyscrapers grouped into clusters of three each, are so designed that they triumph over a podium stretching more than five floors. The towers are particularly designed to offer solace for residential needs of men and women on the move, and to provide a holistic living environment to residents. Hydra Avenue Towers also includes retail towers too, that reflect the spirit of times that we live in. The futuristic smart home technology will be deployed to ensure the required comfort and convenience to residents. Hydra Avenue Towers focuses on sustainable development and is determined to adhere to global standards in an eco-friendly space management
The CEO of Hydra Properties, Dr. Sulaiman Al Fahim, appreciating the Hydra Avenue Towers, described that it adds majesty and grandeur to Al Reem Island. The Avenue Towers is progressing so quickly, that it fills the void in the property market in Abu Dhabi, and answers the prayers of investors and those who seek luxurious and serene living spaces.
The Project Eng. Mohammad Fawzy, Head of Engineering Division, Hydra Properties, said that the project has gained momentum with successful completion of foundation works, which has taken several months for completion. The company is now shifting focus on finishing the pillar work, as quickly as possible.
The Hydra Avenue Towers has been scheduled for completion by 2011.
Labels: Abu Dhabi, Al Reem Island
Construction of SkyGardens project begins at Reem Island
Wednesday, August 06, 2008
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Taahud is one of the major players in today's construction market, with a series of prestigious projects to its credit. The core management team of this Abu Dhabi-based company includes reputed industry professionals with decades of experience in local and regional construction sector.
One of the leading property developers in Middle East, Plus Properties, together with Taahud General Contracting Company, has entered into a Dh.400mn construction contract for developing the SkyGardens project, a waterfront property at Reem Island in Abu Dhabi.
This deal makes way for commencement of construction of SkyGardens project, which is likely to turn out to be one of the most prestigious waterfront projects dotting the Abu Dhabi skyline, revealed a Plus Properties official. Enabling works of the project have already commenced.
SkyGardens is an iconic residential waterfront project, designed by renowned architect James Law, featuring a range of single, double and triple bedroom deluxe apartments, garden apartments and sky garden duplex villas.
The SkyGardens duplex villas feature amenities such as private swimming pools, luxurious interior and exterior finishing and suspended gardens. All units of the development open to sea view, with a 360 degree panoramic view stretching from the sea to Abu Dhabi's stylish skyline.
Located in a quite and upscale marina neighborhood at Reem Island, the development is linked to downtown Abu Dhabi by a bridge, and is just 20 minutes away from the Abu Dhabi airport.
Taahud is one of the major players in today's construction market, with a series of prestigious projects to its credit. The core management team of this Abu Dhabi-based company includes reputed industry professionals with decades of experience in local and regional construction sector.
Labels: Abu Dhabi, Al Reem Island, Construction Projects, Luxury Homes, Water front
Abu Dhabi office rents surge 27 percent
Sunday, August 03, 2008
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Office rents in Abu Dhabi have surged by 27 percent as against that in April 2007, states the Better Homes Commercial Review Quarterly Report. Better Homes is an international property consultancy group.
The recent Cityscape Abu Dhabi has sparked a craze for buying, thereby leading to considerable rent increases, states the report.
The launch prices of the Al Dana development in the Al Raha Beach, has revealed a supply shortage of Dh.4400 per square feet, and this indicates a shortage in office supply.
The units of Al Reem Island are being sold at the range of Dh.2000 to Dh.2500 per Square Feet, while the rentals are in the range of Dh.250 to Dh.300 per Square Feet.
There is also an acute shortage of residential and commercial properties in Abu Dhabi as against that in Dubai, and this shortage has also led to high rentals.
With the supply coming into stream during the next few quarters, the tenants and end-users states the report by Better Homes.
The industrial sector in Abu Dhabi sees a shortage of supply of labour accommodation, with more developments initiated in Abu Dhabi. The rental rates for low quality accommodation are around Dh.3000 to Dh.3500 per month, while the higher quality areas are seeking rates at Dh.3750 to Dh.4250.
As for the retail sector in Abu Dhabi, there has been a steady increase in rent and sales rates during the first quarter. The average prices of retail spaces in Abu Dhabi are between Dh.350 to Dh.400 per square feet, while sales average on Dh.2000 to Dh.2500 per square feet.
Labels: Abu Dhabi, Office Space, Rentals
Bloom Properties launches Bloom Gardens in Abu Dhabi
Sunday, July 20, 2008
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Bloom Properties, the joint real estate development arm of Emirates International Investment Company (EIIC) and the National Holding is launching a luxury residential development Bloom Gardens, located on the prestigious Eastern Mangrove Corniche Road.
The development comprises 640 luxurious detached and semi-detached villas, apartments and townhouses along the seafront. Construction of the landmark project will commence in January 2009.
The development comprises 640 luxurious detached and semi-detached villas, apartments and townhouses along the seafront. Construction of the landmark project will commence in January 2009.
Being an exclusive gated residential development, Bloom Gardens is just a short distance away from Mangroves. The gardens combine detached villas of four, five, six and seven bedrooms, apart from three and four bedrooms, townhouses, all in a lush landscaped environment, designed by renowned international architects.
Among the other amenities are the concierge services, guard-controlled access for pedestrians and vehicles, restaurants, serviced laundry, clubhouses, coffee shops, safe play areas, tennis and basketball courts, parking space within units, recreational building in the neighborhood, pool house, barbeque and picnic area, apart from retail outlets and convenience stores for everyday use and designer boutiques.
According to Hani Shammah, the CEO of Bloom properties, the Bloom Gardens will be ready by the first-half of 2011.
The Bloom brand takes a fresh approach to property, particularly community-oriented development, bringing about a new generation in property development, setting it apart from other developers in the capital.
Apart from Bloom Gardens, the company is currently developing large scale mixed-use, master-planned communities across the MENA region. The Bloom communities will include unique features with strong operators in hospitality, education, leisure and healthcare facilities, depending on the location.
Labels: Abu Dhabi, Community, Luxury Homes, Residential
Abu Dhabi housing rates higher than in Dubai for first time ever
Friday, July 18, 2008
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The housing and rental rates in Abu Dhabi has surpassed Dubai for the first time, says recent industry reports.
According to latest figures released by HSBC, the average rent per square meter in Abu Dhabi was $272 per square meter during the end of 2007, and is $430 per square meter during second quarter of 2008, marking a growth of 58 percent.
During this period, the average rent in Dubai was $343 per square meter during the last quarter of 2007, and $420 per square meter during the second quarter of 2008, marking a 22 percent growth.
Even for purchasing a house, Abu Dhabi witnessed 61 percent growth in house prices, between the last quarters of 2007 and second quarter of 2008, while Dubai saw an increase of 37 percent during the same period.
According to an analyst at HSBC, the main reason behind such a scenario is that the market in Dubai is much tighter, and delivery delays are more apparent. Abu Dhabi is at a premium, as affordability is higher.
The report states that although delays are happening in both Abu Dhabi and Dubai markets, Dubai is experiencing rapid growth, and basic infrastructure such as electricity, water and sewerage systems are unable to match the pace of development.
About 160,000 units were expected to hit the Abu Dhabi housing market by the year 2010. However, at present, Colliers International estimates that only 31,000 units will be available, due to problem with delays.
In another recent Fitch report, Dubai has been warned of a possible oversupply situation with a major influx of housing units into the market towards the year 2009.
However, the report by HSBC predicts that most units would be delivered by the year 2011. The scarcity of housing in Abu Dhabi has prompted people to shift to Dubai, and commute to Abu Dhabi. This may prevent a possible oversupply situation in Dubai.
Analaysts feel that the housing shortage in Dubai too, will remain so, until 2010, when the bulk of supplies hit the market. However, even an oversupply in 2010 cannot be confirmed, due to the continuous ongoing delays in the market.
The report also states that prices in UAE, although on the rise, are still affordable as per international standards. At present the plot prices are an average of Dh.7000 per square meter, and towards end of the year, a residential property sales price of Dh.28000 is expected, which suggests that price growth rate will slow down since the beginning of the year.
According to latest figures released by HSBC, the average rent per square meter in Abu Dhabi was $272 per square meter during the end of 2007, and is $430 per square meter during second quarter of 2008, marking a growth of 58 percent.
During this period, the average rent in Dubai was $343 per square meter during the last quarter of 2007, and $420 per square meter during the second quarter of 2008, marking a 22 percent growth.
Even for purchasing a house, Abu Dhabi witnessed 61 percent growth in house prices, between the last quarters of 2007 and second quarter of 2008, while Dubai saw an increase of 37 percent during the same period.
According to an analyst at HSBC, the main reason behind such a scenario is that the market in Dubai is much tighter, and delivery delays are more apparent. Abu Dhabi is at a premium, as affordability is higher.
The report states that although delays are happening in both Abu Dhabi and Dubai markets, Dubai is experiencing rapid growth, and basic infrastructure such as electricity, water and sewerage systems are unable to match the pace of development.
About 160,000 units were expected to hit the Abu Dhabi housing market by the year 2010. However, at present, Colliers International estimates that only 31,000 units will be available, due to problem with delays.
In another recent Fitch report, Dubai has been warned of a possible oversupply situation with a major influx of housing units into the market towards the year 2009.
However, the report by HSBC predicts that most units would be delivered by the year 2011. The scarcity of housing in Abu Dhabi has prompted people to shift to Dubai, and commute to Abu Dhabi. This may prevent a possible oversupply situation in Dubai.
Analaysts feel that the housing shortage in Dubai too, will remain so, until 2010, when the bulk of supplies hit the market. However, even an oversupply in 2010 cannot be confirmed, due to the continuous ongoing delays in the market.
The report also states that prices in UAE, although on the rise, are still affordable as per international standards. At present the plot prices are an average of Dh.7000 per square meter, and towards end of the year, a residential property sales price of Dh.28000 is expected, which suggests that price growth rate will slow down since the beginning of the year.
Labels: Abu Dhabi, Latest News, UAE
Al Qudra's Lilac Tower open for sale
Friday, July 04, 2008
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Al Qudra real estate has announced its third and final sales offer of the Shades project, the Lilac Tower, at the core of Shams Abu Dhabi, a project master-planned by Sorouh. The Shades project includes five towers-Amber, Lime, Lilac, Azure and Carmine.
Lilac overlooks the Central Park at Shams Abu Dhabi and has been designed to offer unparalleled luxury and comfort. This wonderful infrastructure has 50 Storeys to its credit, comprising studios, single and double bedroom apartments, complemented by a range of quality amenities.
Among the other amenities of the tower are a landscaped rooftop terrace, a business and day care center, fitness and entertainment areas, swimming pool, and ample underground spaces for parking.
The project is open for sale to both UAE nationals and expatriates during the two road shows to be held at the InterContinental Hotel in Abu Dhabi on Saturday, the 5th July, and at the Westin Dubai Mina Seyahi Beach Resort and Marina on Sunday, the 6th July.
Due for completion by 2011, the project offers residents a one-stop-shop intelligent home solution with air conditioning, entertainment and other appliances all under a single roof.
The Acting CEO of Al Qudra Real Estate, Claus Peter Rees, said Lilac Tower has been launched in June and is now looking to commence sales and is hoping for great success.
Rees disclosed that the project has been offered with flexible financing options that offer buyers the opportunity to purchase both floors and individual units under an attractive payment scheme with 30% of amount to be paid during construction period and rest 70% to be given on completion of construction.
Lilac overlooks the Central Park at Shams Abu Dhabi and has been designed to offer unparalleled luxury and comfort. This wonderful infrastructure has 50 Storeys to its credit, comprising studios, single and double bedroom apartments, complemented by a range of quality amenities.
Among the other amenities of the tower are a landscaped rooftop terrace, a business and day care center, fitness and entertainment areas, swimming pool, and ample underground spaces for parking.
The project is open for sale to both UAE nationals and expatriates during the two road shows to be held at the InterContinental Hotel in Abu Dhabi on Saturday, the 5th July, and at the Westin Dubai Mina Seyahi Beach Resort and Marina on Sunday, the 6th July.
Due for completion by 2011, the project offers residents a one-stop-shop intelligent home solution with air conditioning, entertainment and other appliances all under a single roof.
The Acting CEO of Al Qudra Real Estate, Claus Peter Rees, said Lilac Tower has been launched in June and is now looking to commence sales and is hoping for great success.
Rees disclosed that the project has been offered with flexible financing options that offer buyers the opportunity to purchase both floors and individual units under an attractive payment scheme with 30% of amount to be paid during construction period and rest 70% to be given on completion of construction.
Morina Residences meet record sales
Tuesday, July 01, 2008
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First Dubai Real Estate Development Company has reported record sales on its first launch of residential units at Morina Residential Tower, situated near the Gate of Shams Abu Dhabi on Al Reem Island.
The Vice President - Sales and Marketing, Abudul Rahman Al Kandari was quoted as saying that about 25 percent of the project has been sold generating revenue of Dh.136m, as per the marketing plans, while the total value of the project is Dh.400m. The Company has agreed to resume sales even during the construction process, so as to study the price trends in Abu Dhabi market and to take advantage of the current boom.
The project, as of now, is progressing on schedule. Excavation, piling and construction has begun. This distinguished residential project is one of the most important ones in the Abu Dhabi portfolio.
Comprising 29 storeys, the tower covers an area of 63.572 sq. ft., offering exclusive executive homes with stunning canal views, amidst mangrove trees, ample green space and leisure amenities.
According to Al Kandari the strategic location of the tower in proximity of main amenities at Shams Abu Dhabi, public transport network, and water taxis, has added to value of Morina Residences.
The residences are a wide choice of single, double and triple bedrooms, ranging from executive houses to one or two level duplex and exquisite homes of high design and quality. The units are well-equipped with all necessary home appliances with each flat owning a balcony or more. The towers include 24 hour concierge facility, swimming pools, fitness center, club, children’s play area, information center, reception hall, terrace, parking spaces and more.
Al Kandari assured that the company will work towards offering the best quality at Morina Residential Tower, introducing state-of-the-art project, with the same quality of amenities as the recently completed Sky Gardens residential project at DIFC.
Labels: Abu Dhabi, Al Reem Island, Latest News, Sales
Abu Dhabi realty prices to appreciate more than in Dubai
Tuesday, June 17, 2008
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A strong growth, backed by huge demand, a growing population and liberalization of the real estate sector, is likely to keep prices strong in the Abu Dhabi real estate sector for the next seven years, reports EFG-Hermes, a regional investment bank.
The report states that the longevity and strength of the real estate phase in Abu Dhabi, is supported by shortages of all types of real estate, controlled by delivery of supply to avoid a surplus, coupled with greater economic liberalization, and creation of a unique identity.
According to the Author of the report, Sana Kapadia, "A strong government presence supports and caps on the amount of real estate that can be built on any given year to mitigate the risk of an oversupply of property."
No major additions of residential units are likely in Abu Dhabi until late 2009, and with the ever-growing demand, the residential market will remain under-supplied until the end of 2009.
It has been estimated that the average price of residential properties will increase by 20 to 25 percent, during the rest of this year, and by 15 to 20 percent in 2009.
Demand for office space, too, will remain strong, with current vacancy rates at 1 percent, and with newer businesses seeking to make their presence in Middle East, it has been predicted.
However, considerable supplies that are likely to come in during 2009, will help cool the rising rents and prices, it is said.
Meanwhile, in a survey conducted by DSL Exhibitions, an international firm, specializing in organizing conferences and exhibitions, real estate investors expect that prices of properties in Abu Dhabi are likely to appreciate more than that in Dubai and other northern emirates.
The survey was done to find out if there exist any differences in the perceptions and attitudes of real estate buyers, between choosing Dubai, Abu Dhabi or one of the Northern Emirates and to underline any apparent trends.
The survey has revealed considerable differences in the attitudes and perception of investors, who choose between the three regions - Abu Dhabi, Dubai and Northern Emirates.
The report states that the longevity and strength of the real estate phase in Abu Dhabi, is supported by shortages of all types of real estate, controlled by delivery of supply to avoid a surplus, coupled with greater economic liberalization, and creation of a unique identity.
According to the Author of the report, Sana Kapadia, "A strong government presence supports and caps on the amount of real estate that can be built on any given year to mitigate the risk of an oversupply of property."
No major additions of residential units are likely in Abu Dhabi until late 2009, and with the ever-growing demand, the residential market will remain under-supplied until the end of 2009.
It has been estimated that the average price of residential properties will increase by 20 to 25 percent, during the rest of this year, and by 15 to 20 percent in 2009.
Demand for office space, too, will remain strong, with current vacancy rates at 1 percent, and with newer businesses seeking to make their presence in Middle East, it has been predicted.
However, considerable supplies that are likely to come in during 2009, will help cool the rising rents and prices, it is said.
Meanwhile, in a survey conducted by DSL Exhibitions, an international firm, specializing in organizing conferences and exhibitions, real estate investors expect that prices of properties in Abu Dhabi are likely to appreciate more than that in Dubai and other northern emirates.
The survey was done to find out if there exist any differences in the perceptions and attitudes of real estate buyers, between choosing Dubai, Abu Dhabi or one of the Northern Emirates and to underline any apparent trends.
The survey has revealed considerable differences in the attitudes and perception of investors, who choose between the three regions - Abu Dhabi, Dubai and Northern Emirates.
Labels: Abu Dhabi, Property Prices, UAE
Aldar unveils Al Ruwais retail realty in Abu Dhabi
Wednesday, June 11, 2008
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The leading real estate firm in Abu Dhabi, Aldar Properties, has announced the launch of Dh.500million double-storey shopping center in the Al Ruwais industrial city, located 240 kilometers west of Abu Dhabi.
The project is expected to cater to a growing population of 40,000 by 2010. The Al Ruwais shopping center will house 99 retail outlets, a supermarket, children's entertainment center, food and beverage outlets, and Warner Brothers Cinema Complex.
The Phase One of the project is expected to be complete by October 2010. The second phase would commence next year, the date of which, will be announced later this year. The cost of construction of Phase 2 would be double the cost of Phase one.
According to Ronald Stephen Barrot, the Chief Executive Officer of Aldar, the project is a part of the company's plan to develop other areas in the capital that has the development potential.
"We will own the asset and lease the retail outlets. The built-up area of the shopping center will be about 41,000 square meters." he added.
"We are pleased to see Al Ruwais grow from an industrial complex into a full-fledged urban center, and we feel duty-bound to contribute to the growth. It is a top priority for Aldar to cater to the needs of all residents in the Abu Dhabi emirate," said Ahmed Ali Al Sayegh, Chairman, Aldar Properties.
Al Ruwais retail realty is likely to serve residents in the neighboring cities such as Delma Island, Al Marfaa, Al Ghowifat, Gyathi and Sella, as currently residents of these cities travel to Abu Dhabi for shopping and leisure.
The project is expected to cater to a growing population of 40,000 by 2010. The Al Ruwais shopping center will house 99 retail outlets, a supermarket, children's entertainment center, food and beverage outlets, and Warner Brothers Cinema Complex.
The Phase One of the project is expected to be complete by October 2010. The second phase would commence next year, the date of which, will be announced later this year. The cost of construction of Phase 2 would be double the cost of Phase one.
According to Ronald Stephen Barrot, the Chief Executive Officer of Aldar, the project is a part of the company's plan to develop other areas in the capital that has the development potential.
"We will own the asset and lease the retail outlets. The built-up area of the shopping center will be about 41,000 square meters." he added.
"We are pleased to see Al Ruwais grow from an industrial complex into a full-fledged urban center, and we feel duty-bound to contribute to the growth. It is a top priority for Aldar to cater to the needs of all residents in the Abu Dhabi emirate," said Ahmed Ali Al Sayegh, Chairman, Aldar Properties.
Al Ruwais retail realty is likely to serve residents in the neighboring cities such as Delma Island, Al Marfaa, Al Ghowifat, Gyathi and Sella, as currently residents of these cities travel to Abu Dhabi for shopping and leisure.
Aldar launches second phase of Al Mamoura, Baniyas Towers
Sunday, June 08, 2008
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The leading integrated property developer, Aldar Properties, has launched the second phase of Al Mamoura and Baniyas Towers at Abu Dhabi.
The two commercial developments, located at the heart of Abu Dhabi, offer about 62,000 square meters of office space, thereby helping to meet the high demand for office space in Abu Dhabi.
Followed by the pre-letting of the 37,000 square meters of entire Al Mamoura A, another 20,000 square meters at Al Mamoura B, is also due for completion, and will be open for lease by the end of this year.
Baniyas Towers will have another 42,000 square meters of grade A office space to offer in two buildings, that are due for completion by January 2009.
Al Mamoura B and Baniyas Towers will offer 'grade A' office accommodation, including high-end amenities, together with units of flexible size, available for lease. Both developments will have ample parking for its tenants and will be serviced by a high standard of building management.
"Aldar Properties hopes to provide the market with a considerable amount of international grade office space by the year 2009. These projects are being done inline with Aldar’s initiative to meet the requirements of this rapidly evolving city and its high demand for quality office accommodation," said Ahmed Ali Al Sayegh, Chairman, Aldar Properties.
The two commercial developments, located at the heart of Abu Dhabi, offer about 62,000 square meters of office space, thereby helping to meet the high demand for office space in Abu Dhabi.
Followed by the pre-letting of the 37,000 square meters of entire Al Mamoura A, another 20,000 square meters at Al Mamoura B, is also due for completion, and will be open for lease by the end of this year.
Baniyas Towers will have another 42,000 square meters of grade A office space to offer in two buildings, that are due for completion by January 2009.
Al Mamoura B and Baniyas Towers will offer 'grade A' office accommodation, including high-end amenities, together with units of flexible size, available for lease. Both developments will have ample parking for its tenants and will be serviced by a high standard of building management.
"Aldar Properties hopes to provide the market with a considerable amount of international grade office space by the year 2009. These projects are being done inline with Aldar’s initiative to meet the requirements of this rapidly evolving city and its high demand for quality office accommodation," said Ahmed Ali Al Sayegh, Chairman, Aldar Properties.
Labels: Abu Dhabi, Aldar, Commercial Property, Construction Projects
Rents in Abu Dhabi to continue to soar
Thursday, June 05, 2008
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Rents in Abu Dhabi, although have reached their maximum best, are likely to increase further, during the next few years, in view of the worsening shortage in supply, reveal recent reports.
According to the Abu Dhabi Chamber of Commerce and Industry The low and middle income expatriates will be the worst affected with the increase in rents, which have more than doubled during the past three years, while the salaries have remained the same.
After years of stability during 1990s and 2000, the property market in Abu Dhabi witnessed a jerk in 2006, due to the strong domestic demand, caused by an economic upsurge that shot up rents to sky-high levels, despite the introduction of rent caps by the government.
The Chamber reports that although the real estate market in the capital was more or less stabilized in 2005, with the 287,000 housing units being able to cover the domestic demand, a surge in demand during 2006, did not meet a similar supply growth. This resulted in a shortage of 3000 units. During the year 2007, the demand-supply gap was more than doubled and touched nearly 8000 and is further expected to touch 20,000 by this year.
The Chamber, in its report, states "Most housing units which will enter the market this year will cater to the hig-income sector, while the low and middle-income category will be the victims of shortage and rent increases."
"We expect a record supply shortage in housing units, which exceeds 20,000. This will aggravate the property situation in the emirate, pushing it from bad to worse, which in turn will affect the economic activities in the emirate and push inflation to new record levels," the report said.
According to property dealers, rents in the capital have increased by more than 25 percent in 2007, and by 15 percent during first quarter of this year. The increase has been attributed to the huge increase in demand and rapid growth in population, an intensifying influx of expatriate workers due to surge in projects in the Capital, failure by landlords to abide by the rent caps, and the concentration of property developers on costlier properties that caters to high-income sector.
"Buildings that are under construction in Abu Dhabi will cater to only 20 percent of the demand. This will only widen the supply shortage, and when coupled with the population growth, it will push rents to record high levels. As rents account for more than 40 percent of consumer spending, this increase will further aggravate inflation in the emirate," states the Chamber report.
Abu Dhabi has one of the highest per-capita incomes in the world, projected to touch Dh.225,000 in 2008. As per figures by the Abu Dhabi Department of Planning and Economy, population in Abu Dhabi has grown by 12.6 percent, and is likely to grow by 7.5 percent his year, which is one of the highest in the world.
According to the Abu Dhabi Chamber of Commerce and Industry The low and middle income expatriates will be the worst affected with the increase in rents, which have more than doubled during the past three years, while the salaries have remained the same.
After years of stability during 1990s and 2000, the property market in Abu Dhabi witnessed a jerk in 2006, due to the strong domestic demand, caused by an economic upsurge that shot up rents to sky-high levels, despite the introduction of rent caps by the government.
The Chamber reports that although the real estate market in the capital was more or less stabilized in 2005, with the 287,000 housing units being able to cover the domestic demand, a surge in demand during 2006, did not meet a similar supply growth. This resulted in a shortage of 3000 units. During the year 2007, the demand-supply gap was more than doubled and touched nearly 8000 and is further expected to touch 20,000 by this year.
The Chamber, in its report, states "Most housing units which will enter the market this year will cater to the hig-income sector, while the low and middle-income category will be the victims of shortage and rent increases."
"We expect a record supply shortage in housing units, which exceeds 20,000. This will aggravate the property situation in the emirate, pushing it from bad to worse, which in turn will affect the economic activities in the emirate and push inflation to new record levels," the report said.
According to property dealers, rents in the capital have increased by more than 25 percent in 2007, and by 15 percent during first quarter of this year. The increase has been attributed to the huge increase in demand and rapid growth in population, an intensifying influx of expatriate workers due to surge in projects in the Capital, failure by landlords to abide by the rent caps, and the concentration of property developers on costlier properties that caters to high-income sector.
"Buildings that are under construction in Abu Dhabi will cater to only 20 percent of the demand. This will only widen the supply shortage, and when coupled with the population growth, it will push rents to record high levels. As rents account for more than 40 percent of consumer spending, this increase will further aggravate inflation in the emirate," states the Chamber report.
Abu Dhabi has one of the highest per-capita incomes in the world, projected to touch Dh.225,000 in 2008. As per figures by the Abu Dhabi Department of Planning and Economy, population in Abu Dhabi has grown by 12.6 percent, and is likely to grow by 7.5 percent his year, which is one of the highest in the world.
Labels: Abu Dhabi, Real Estate News, Rentals
MBI unveils first landmark project Deerfields Town Square in the Capital
Monday, May 19, 2008
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Mubarak and Brother Property and Financial Investments (MBI), a major real estate, construction and infrastructure company, has announced the unique aspects of their first landmark project, Deerfields Town Square, at the Abu Dhabi Cityscape Exhibition 2008. The exhibition is likely to conclude today, the 16th May 2008.
Mubarak and Brother Property and Financial Investments (MBI), a major real estate, construction and infrastructure company, has announced the unique aspects of their first landmark project, Deerfields Town Square, at the Abu Dhabi Cityscape Exhibition 2008. The exhibition is likely to conclude today, the 16th May 2008.The Deerfields Town Square, set to be nestled at Abu Dhabi's Al Bahia area amidst developments such as the Yas Island, Al Raha Beach, and Khalifa A and B Cities, is all set to offer tenants, residents, and shoppers a holistic experience in working, shopping, and entertainment, all within a single community district.
The close proximity of Deerfields to the Abu Dhabi International Airport, and Abu Dhabi's largest entertainment park -Warner Brothers, and the Formula One Race Track, makes the project more prominent.
Reflecting a true classic Victorian-style architecture, the project features commercial, retail, residential and hospitality components, all spreading across 840,000 square meters of land, covering a total built-up area of 3.2million Square Feet.
The project will also house a mall with a capacity to accommodate more than 200 retailers, and a gamut of anchor shops, food courts, casual and fine dining restaurants, stand alone retail boxes, hyper market, coffee shops and 12-screen multiplex.
The development also houses offices, serviced and residential apartments, hotel and a bird conservatory, which is said to be one-of-its-kind in the country's history.
The CEO of MBI, Mohammed Al Haj, said "Being MBI's first landmark project in Abu Dhabi, the mixed-use community development, Deerfields Town Square, will add a distinctive architectural element to the UAE retail sector, and aims to craft an ideal blend of high-demand retail offerings with an elegant layout and expansive landscaping."
The Deerfields Town Square will merge the alluring charm of the past with the glamour of new age living, offering a year-round of 'quality family time' to the close knit communities and tourists in Abu Dhabi, said Banu Tas, General Manager of Deerfields Town Square.
Labels: Abu Dhabi, Real Estate Projects
