Dubai Real Estate News
UAE Property Market Trends and Reviews

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

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.

Labels: Abu Dhabi, land, Property Law

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.

Labels: Abu Dhabi, Al Raha Beach, Residential, Villa Projects

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.

Labels: Abu Dhabi, Business Tower, Tameer

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.

Labels: Abu Dhabi, housing

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.

Labels: Abu Dhabi, Investment Property, Middle-East

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.

Labels: Abu Dhabi, Cityscape

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.

Labels: Abu Dhabi, Cityscape, Property-show

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.

Labels: Abu Dhabi, Rentals

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.

Labels: Abu Dhabi, Real Estate News

Labels: Abu Dhabi, Construction Projects

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.

Labels: Abu Dhabi, Infrastructure

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.

Labels: Abu Dhabi, Cityscape, Market Trends

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

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.

Labels: Abu Dhabi, Aldar, Market Trends, Sorouh

Labels: Abu Dhabi, Property-show

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.

Labels: Abu Dhabi, Property-show

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.

Labels: Abu Dhabi, Construction Projects

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.

Labels: Abu Dhabi, Aldar, Mortgages, Sorouh

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.

Labels: Abu Dhabi, Property Prices

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.

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 to
buyers in the emirate.

The companies are estimated to represent about more than two-thirds of the new units under-construction in Abu Dhabi.

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."

Labels: Abu Dhabi, Mortgages

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.

Labels: Abu Dhabi, housing, Market Trends

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.

Labels: Abu Dhabi, eco-friendly

Labels: Abu Dhabi, Al Reem Island, Sales

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.

Labels: Abu Dhabi, Property Law

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.

Labels: Abu Dhabi, Al Reem Island, Deyaar, Luxury Homes

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.

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