Wednesday, October 20, 2010

Abu Dhabi property market to see more consolidations in 2011

The real estate market in Abu Dhabi is all set for another consolidation in 2011, with huge supply of high-end homes in the next 15 months, which will do little to meet the shortage of mid-income housing, said a real estate executive yesterday.

The Abu Dhabi developers will continue to complete and handover projects next year, while about 8000 high-end homes are likely to further enter the market towards end of next year, revealed Gurjit Singh, the Chief Operating Officer, Sorouh Real Estate.

Speaking during the Reuters Middle East Investment Summit in Dubai, he further said that the undersupply situation is focused on Abu Dhabi, and is predominantly the mid-income segment, and the gat needs to be filed. He, however, agreed that the government in Abu Dhabi is promoting more middle income rental housing projects.

Being the second largest developer in Abu Dhabi, Sorouh, is one among several other developers in the emirate to focus on developing government-backed housing projects, targeting Emirati families.

Singh pointed out that the government is more involved in making provision for Emirati housing, and this should continue, as there is need for such type of housing.

The developers across the UAE have been through the global economic crisis, which ended a six-year real estate boom, with Dubai suffering the most, while Abu Dhabi which is supported by the oil-revenue in the country, has managed to fare better.

No comments: