Saturday, February 17, 2007

Abu Dhabi Property Market to Contribute Dh.40billion to its GDP

Abu Dhabi’s real estate investments and constructions are likely to contribute about Dh.40billion to the GDP of the emirate during the current year.

The Head of the Construction Committee and member of the board for ADCCI (Abu Dhabi Chamber of Commerce and Industry), Khalfan Al Kaabi, mentioned that about 110 statutes or more, along with other regulations, have been amended or passed during 2006, which indicates the determination of the government to restructure the law on par with international standards.
Al Kaabi expects a steady growth in the property sector of Abu Dhabi during the coming years. He stated that Abu Dhabi is badly in need of additional commercial and residential hotels and buildings to meet the strong demands and to keep pace with the steady growth.

However, Al Kaabi is of the opinion that a regulation for controlling rents and the landlord-tenant relationship is unwarranted, as the seven percent rent increase in annually, is by itself reasonable and is almost on par with the rate of inflation.

The decision by the Abu Dhabi Executive Council to permit the Sorouh and Aldar companies to register and own properties, and market them to foreign investors was welcomed by the officials, who mentioned that this will boost the confidence of investors in Abu Dhabi property market and persuade foreign buyers to enter the real estate market in the emirate.

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