Majority of investments in the GCC region flows into property sector
Wednesday, September 24, 2008
About 50 percent of all investments in the UAE, and the rest of GCC region, goes into the property sector, as against just 30 percent in other Arab states, noted a development expert.
Also, it should be pointed out at this juncture that the Gulf is not subject to the risk of sub-prime crisis, such as that experienced in the United States, said Dr. Refat Abdelhalim Alfaouri, Director-General, Arab Administrative Development Organization (AADO).
Speaking to the media, Dr. Al Faouri, said any crisis would be the result of an excessive supply of residential units, and political problems, which could lead to possibility of instability in the region.
These factors are not predominant in the UAE and other GCC states, right now, as the states are enjoying security and political stability. Also, the gap between supply and demand of residential units is still large.
The AADO, on monitoring the currently flow of investments into the Arab world's property sector, noticed that about $90bn worth of total investments flowed into the real estate sector each year.
The best areas for investment in the Arab World currently are gold and real estate, both of which, offer safety and stability. The property sector has several benefits, the most prominent of which is the availability of large amount of capital, due to huge increase in prices of oil and high demand for residential units due to growth in population in the Arab countries.
But, shortage of skilled manpower to run properties, and weakness of laws governing the industry and property finance institutions are few of the challenges faced by realty sector.
A study by the Abu Dhabi Chamber of Commerce and Industry (ADCCI) reveals that projects in excess of Dh.1.300 trillion are underway and will be implemented in Abu Dhabi in the next few years. This includes construction and property ventures worth more than Dh.752bn.
The construction boom in Abu Dhabi and several other parts of UAE has helped boost the value of the sector over the past couple of years. The contribution to the gross domestic product of the country has increased from Dh.25bn in 2002 to Dh.45.5bn in 2007, and is expected to touch a maximum of Dh.53.3bn this year.
The property sector contributes an approximate of 6.5 percent of the nominal GDP of the UAE, and about Dh.697bn in 2007.
Social BookmarkingAlso, it should be pointed out at this juncture that the Gulf is not subject to the risk of sub-prime crisis, such as that experienced in the United States, said Dr. Refat Abdelhalim Alfaouri, Director-General, Arab Administrative Development Organization (AADO).
Speaking to the media, Dr. Al Faouri, said any crisis would be the result of an excessive supply of residential units, and political problems, which could lead to possibility of instability in the region.
These factors are not predominant in the UAE and other GCC states, right now, as the states are enjoying security and political stability. Also, the gap between supply and demand of residential units is still large.
The AADO, on monitoring the currently flow of investments into the Arab world's property sector, noticed that about $90bn worth of total investments flowed into the real estate sector each year.
The best areas for investment in the Arab World currently are gold and real estate, both of which, offer safety and stability. The property sector has several benefits, the most prominent of which is the availability of large amount of capital, due to huge increase in prices of oil and high demand for residential units due to growth in population in the Arab countries.
But, shortage of skilled manpower to run properties, and weakness of laws governing the industry and property finance institutions are few of the challenges faced by realty sector.
A study by the Abu Dhabi Chamber of Commerce and Industry (ADCCI) reveals that projects in excess of Dh.1.300 trillion are underway and will be implemented in Abu Dhabi in the next few years. This includes construction and property ventures worth more than Dh.752bn.
The construction boom in Abu Dhabi and several other parts of UAE has helped boost the value of the sector over the past couple of years. The contribution to the gross domestic product of the country has increased from Dh.25bn in 2002 to Dh.45.5bn in 2007, and is expected to touch a maximum of Dh.53.3bn this year.
The property sector contributes an approximate of 6.5 percent of the nominal GDP of the UAE, and about Dh.697bn in 2007.
Labels: Investment Property, Latest News, Middle-East, UAE
Rental properties in UAE witnessing massive demand
Thursday, September 18, 2008
Boasting 365 days of sunshine, population growth and reliable economic growth, apart from a booming tourism hub, the UAE is also witnessing massive demand for rental properties. This comes as a tempting package for prospective buyers, states a report in Gulf News.
The new property law which regulates the mortgage process, protecting the rights of borrowers and lenders, making considerable advancements in the home financing market of UAE, offers more choice to consumers than before.
The UAE market is rapidly developing, when compared to markets in places such as the US and the UK, with the central bank data revealing that the mortgage lending in the UAE jumped 55 percent in the year till March.
Another factor worth noting when talking about home ownership in the UAE is the huge demand for rentals in the residential sector. Even the business men who have relocated to the emirates are getting disposed towards purchasing homes in the UAE.
Mortgage lenders are agreeing to offer finance to both end-user and investment purchases, and this makes the prospect of buying-to-rent and second-home purchases even more attractive.
Some confident owner-occupiers who comprise 70 percent of the market are willing to take out finance against existing property to raise cash for secondary purchases which indicates the fair manner in which UAE market is being perceived.
Home financiers, led by Islamic organizations are enjoying a 60 percent slice of the market, and are facing tough competitions from foreign banks keen on getting a slice of the action.
International and local mortgage lenders are striving to make it easier than ever to borrow money for property purchase in the UAE and most mortgage providers can offer customers a list of lenders to choose from.
Flexible and varied home loans are available from various sources, and it is getting all the more easier, to finance commercial, off-plan and under-construction properties, given that the planned property is registered with Dubai Land Department as per the terms of new mortgage law.
Also, it is worth pointing out at this instance that UAE market is standing firm, when the markets elsewhere is witnessing the impact of global slowdown, with the dirham still being pegged to the dollar. This implies that although supply is surpassing demand, rates are sizeable, and the UAE central bank can be forced to track number of US interest rate cuts and home loan rates are lower than during the same period three years ago.
Recent reports state that property prices in Dubai have grown over 70 percent beginning 2007, and more than 20 percent since the beginning of this year. So currently, buyers in the UAE are not looking at two to three percent profit gain in a year, but, the margins expected have grown considerably high. With such profits, interest rates are a secondary consideration.
Social BookmarkingThe new property law which regulates the mortgage process, protecting the rights of borrowers and lenders, making considerable advancements in the home financing market of UAE, offers more choice to consumers than before.
The UAE market is rapidly developing, when compared to markets in places such as the US and the UK, with the central bank data revealing that the mortgage lending in the UAE jumped 55 percent in the year till March.
Another factor worth noting when talking about home ownership in the UAE is the huge demand for rentals in the residential sector. Even the business men who have relocated to the emirates are getting disposed towards purchasing homes in the UAE.
Mortgage lenders are agreeing to offer finance to both end-user and investment purchases, and this makes the prospect of buying-to-rent and second-home purchases even more attractive.
Some confident owner-occupiers who comprise 70 percent of the market are willing to take out finance against existing property to raise cash for secondary purchases which indicates the fair manner in which UAE market is being perceived.
Home financiers, led by Islamic organizations are enjoying a 60 percent slice of the market, and are facing tough competitions from foreign banks keen on getting a slice of the action.
International and local mortgage lenders are striving to make it easier than ever to borrow money for property purchase in the UAE and most mortgage providers can offer customers a list of lenders to choose from.
Flexible and varied home loans are available from various sources, and it is getting all the more easier, to finance commercial, off-plan and under-construction properties, given that the planned property is registered with Dubai Land Department as per the terms of new mortgage law.
Also, it is worth pointing out at this instance that UAE market is standing firm, when the markets elsewhere is witnessing the impact of global slowdown, with the dirham still being pegged to the dollar. This implies that although supply is surpassing demand, rates are sizeable, and the UAE central bank can be forced to track number of US interest rate cuts and home loan rates are lower than during the same period three years ago.
Recent reports state that property prices in Dubai have grown over 70 percent beginning 2007, and more than 20 percent since the beginning of this year. So currently, buyers in the UAE are not looking at two to three percent profit gain in a year, but, the margins expected have grown considerably high. With such profits, interest rates are a secondary consideration.
Labels: Market Trends, Mortgages, Rentals, UAE
Bollywood superstar, Shah Rukh Khan, to venture into UAE property sector
The Indian film industry's uncrowned King, Shah Rukh Khan is said to have ventured into the UAE realty sector as a real estate developer.
The Bollywood superstar has started conceptualizing few properties in Ras Al Kahimah emirate of the UAE, and will begin with the Shah Rukh Khan Boulevard, located in the island of Al Dana in Ras Al Khaimah.
The superstar is expected to arrive in Dubai for the forthcoming Cityscape exhibition to be held between 6th and 9th October.
Shah Rukh Khan has teamed up with Nakheel, the leading property developer in the UAE to purchase a house on the man made island of Palm Jumeirah, located off the coast of Dubai.
The property in Ras Al Khaimah will include studio, single and double bedroom apartments, designed by well-known architect Toni Ashai. The superstar, himself, is said to have associated with the development via TSA International Investments, a leading property financial consultancy in the UAE.
Social BookmarkingThe Bollywood superstar has started conceptualizing few properties in Ras Al Kahimah emirate of the UAE, and will begin with the Shah Rukh Khan Boulevard, located in the island of Al Dana in Ras Al Khaimah.
The superstar is expected to arrive in Dubai for the forthcoming Cityscape exhibition to be held between 6th and 9th October.
Shah Rukh Khan has teamed up with Nakheel, the leading property developer in the UAE to purchase a house on the man made island of Palm Jumeirah, located off the coast of Dubai.
The property in Ras Al Khaimah will include studio, single and double bedroom apartments, designed by well-known architect Toni Ashai. The superstar, himself, is said to have associated with the development via TSA International Investments, a leading property financial consultancy in the UAE.
Labels: Latest News, Ras Al Khaima, UAE
UAE realty sector hoped to cool down and witness corrections
Thursday, September 04, 2008
The prevailing high prices in Dubai realty sector are likely to be short-lived, and a slowdown is expected, announced the Chief Executive of Daman Investments, a top asset management company.
"Prices are sure to stop growing at this maddening pace. I doubt we will see a significant long term bust. But we will see corrections" said Shehab Gargash, CEO, Daman Investments.
According to Shehab, with the demand continuing to grow, the realty sector will witness growth and prices will continue to increase. But Dubai is no longer a direct build-and-sell proposition. During the past weeks, the UAE realty sector was in the limelight for several reasons, such as the much talked about Morgan Stanley report, which indicated a 10 percent drop in prices by the next two years, when the supply comes into stream.
The market is in a consolidation phase, and will see a differentiation among good and bad quality developers, Shehab added.
Mohammad Nimer, CEO of MAG Group Property Development, agreed that the prices are no-doubt sky-high, and is getting less attractive for investors and end-users, and hence, a correction is bound to take place. The people who already purchased property will realize that the price paid was 'inflated', and secondary market buyers and investors will think twice before investing.
The Government of Dubai has now passed a mortgage regulation, making registration mandatory, which cracks down off-plan sales, and reduces fears of speculation in the market. This will surely have a positive impact on the market, although the market will face a slow down. But, it will sure make the market stronger, he added.
Sudhir Kumar, the Managing Director, Realtors International, pointed out that premiums in witnessed in the market, during the recent years, have now become a past. He, however, said that he does not expect a slowdown in the market within next two years.
Temporary shake ups may happen, but, considering the corrective measures being taken, when all the regulations are passed, abnormal premiums are unlikely to happen, he added.
Social Bookmarking"Prices are sure to stop growing at this maddening pace. I doubt we will see a significant long term bust. But we will see corrections" said Shehab Gargash, CEO, Daman Investments.
According to Shehab, with the demand continuing to grow, the realty sector will witness growth and prices will continue to increase. But Dubai is no longer a direct build-and-sell proposition. During the past weeks, the UAE realty sector was in the limelight for several reasons, such as the much talked about Morgan Stanley report, which indicated a 10 percent drop in prices by the next two years, when the supply comes into stream.
The market is in a consolidation phase, and will see a differentiation among good and bad quality developers, Shehab added.
Mohammad Nimer, CEO of MAG Group Property Development, agreed that the prices are no-doubt sky-high, and is getting less attractive for investors and end-users, and hence, a correction is bound to take place. The people who already purchased property will realize that the price paid was 'inflated', and secondary market buyers and investors will think twice before investing.
The Government of Dubai has now passed a mortgage regulation, making registration mandatory, which cracks down off-plan sales, and reduces fears of speculation in the market. This will surely have a positive impact on the market, although the market will face a slow down. But, it will sure make the market stronger, he added.
Sudhir Kumar, the Managing Director, Realtors International, pointed out that premiums in witnessed in the market, during the recent years, have now become a past. He, however, said that he does not expect a slowdown in the market within next two years.
Temporary shake ups may happen, but, considering the corrective measures being taken, when all the regulations are passed, abnormal premiums are unlikely to happen, he added.
Labels: Market Trends, Real Estate News, UAE
The trend of mega developments continue to rise in UAE
Mega developments are here to stay, and will be the future standard for real estate development in the region, reports the Gulf News.
Mohammed Hussein Abdullah al Nemer, the Board Member and Chief Marketing Officer of Awali Real Estate Investments, stated that the rise of mega projects in the UAE realty sector, may be due to several factors, which are hoped to bring in demand and form the ideal platform for large-scale community developments, as against the smaller, single-purpose developments during the past.
The growing UAE economy, draws high numbers of new residents each year, and creates a knock-on impact on the property sector. This has led to massive surge in demand for high quality commercial and residential properties.
With the demand, comes the need for luxury, convenience, exclusivity, integrated community services, all of which could be expected from a modern life-style.
Mixed-use developments not only cater to the necessities of modern living, but also play a major role in the sustained development of the economy in the region, as the sheer volume of development is not only indicative of the vastness in the market, but, is also a major contributor to the growth in terms of job opportunity.
Social BookmarkingMohammed Hussein Abdullah al Nemer, the Board Member and Chief Marketing Officer of Awali Real Estate Investments, stated that the rise of mega projects in the UAE realty sector, may be due to several factors, which are hoped to bring in demand and form the ideal platform for large-scale community developments, as against the smaller, single-purpose developments during the past.
The growing UAE economy, draws high numbers of new residents each year, and creates a knock-on impact on the property sector. This has led to massive surge in demand for high quality commercial and residential properties.
With the demand, comes the need for luxury, convenience, exclusivity, integrated community services, all of which could be expected from a modern life-style.
Mixed-use developments not only cater to the necessities of modern living, but also play a major role in the sustained development of the economy in the region, as the sheer volume of development is not only indicative of the vastness in the market, but, is also a major contributor to the growth in terms of job opportunity.
Labels: Real Estate News, UAE
UAE house rents surged 17.5 percent in 2007
Monday, August 25, 2008
With inflation at its peak, house rents and associated services in the UAE, has surged by 17.5 percent last year.
The rents increased by 18.8 percent, while other associated services and products, including housemaids and furniture got dearer, except the heavily subsidized power supply and water, which either stabilized or declined.
The figures released by the Ministry of Economy last year, revealed that 2007 was the best year for UAE, in terms of economic growth and revenues. But it was also one of the worst years in terms of inflation, which soared by 11 percent.
The UAE attributes the increase in food prices and rents as the main factors behind inflation, apart from the higher import bills due to decline in the value of US dollar.
Although, the high food prices has been considered mainly due to surge in global farm costs, the strong demand generated by the economic boom, coupled with mounting fuel and construction costs, have pushed costs of rents and other housing services forwards.
The Ministry of Economy reports that house rents and other associated items saw an increase of 17.5 percent in 2007, which is far higher than 12.5 percent growth in 2006. Rents along saw an increase by 18.8 percent, while the prices of furniture and other other services increased by 13 percent in 2007.
Water and electricity prices were the only relief, as water rates continued to remain stable due to heavy government subsidies on water supply for domestic use, while electricity rates declined by 5.5 percent.
The Ministry reports inflation in the UAE at 11.1 percent in 2007, attributing soaring rents and food prices to be the major cause.
The major oil-producing emirate, Abu Dhabi, saw the maximum inflation rate of nearly 11.6 percent, followed by Dubai and Sharjah.
It has been revealed that UAE was the second highest in inflation levels in the GCC, next to Qatar, which had recorded 13 percent. The inflation rate of UAE was thrice that in Saudi Arabia, and four times that in Bahrain.
Economists are expecting inflation to continue to remain high even this year, with the rising rents and food prices. UAE, which is heavily dependent on imports, has increased in value and quantity due to upsurge in regional business, and the peg between the Dollar and UAE Dirham.
Social BookmarkingThe rents increased by 18.8 percent, while other associated services and products, including housemaids and furniture got dearer, except the heavily subsidized power supply and water, which either stabilized or declined.
The figures released by the Ministry of Economy last year, revealed that 2007 was the best year for UAE, in terms of economic growth and revenues. But it was also one of the worst years in terms of inflation, which soared by 11 percent.
The UAE attributes the increase in food prices and rents as the main factors behind inflation, apart from the higher import bills due to decline in the value of US dollar.
Although, the high food prices has been considered mainly due to surge in global farm costs, the strong demand generated by the economic boom, coupled with mounting fuel and construction costs, have pushed costs of rents and other housing services forwards.
The Ministry of Economy reports that house rents and other associated items saw an increase of 17.5 percent in 2007, which is far higher than 12.5 percent growth in 2006. Rents along saw an increase by 18.8 percent, while the prices of furniture and other other services increased by 13 percent in 2007.
Water and electricity prices were the only relief, as water rates continued to remain stable due to heavy government subsidies on water supply for domestic use, while electricity rates declined by 5.5 percent.
The Ministry reports inflation in the UAE at 11.1 percent in 2007, attributing soaring rents and food prices to be the major cause.
The major oil-producing emirate, Abu Dhabi, saw the maximum inflation rate of nearly 11.6 percent, followed by Dubai and Sharjah.
It has been revealed that UAE was the second highest in inflation levels in the GCC, next to Qatar, which had recorded 13 percent. The inflation rate of UAE was thrice that in Saudi Arabia, and four times that in Bahrain.
Economists are expecting inflation to continue to remain high even this year, with the rising rents and food prices. UAE, which is heavily dependent on imports, has increased in value and quantity due to upsurge in regional business, and the peg between the Dollar and UAE Dirham.
Labels: Real Estate News, UAE
Virtual Offices form the latest trend, as companies are unable meet high costs
Friday, August 01, 2008
Unable to manage high operating costs in Dubai, majority of the new companies are planning to begin operations in the free zones in UAE, such as Ajman Free Zone, Fujairah Free Zone, Ras Al Khaimah Free Trade Zone and Hamriyah (Sharjah) free zone.
According to a study by Jitendra Business Consultants, one of the prominent consulting firms in UAE, the four Emirates are making efforts to attract companies through their innovative offerings such as Flexi-Desk, e-Office and Virtual Office.
The "Virtual Office" in Fujairah Free Zone, bears the address of an office, the telephone numbers, the meeting rooms, of an office, except the fact that the determining factor, you, are not actually present in the office.
For instance, the Ajman's Free Zone e-office center, includes amenities such as high speed internet, and table space. The e-office center includes exclusive business desk with interiors and amenities such as board rooms, meeting halls, restaurant and high-speed internet connectivity.
Even the Sharjah (Hamriyah) Free Zone includes similar amenities.
Even the Sharjah (Hamriyah) Free Zone includes similar amenities.
The "Flexi-Desk" by RAK Free Trade Zone, is networked desk, which has been designed for single-person users such as self-employed businessmen or establishments. It offers a furnished semi-close office with an executive desk, chair and private email address, and an individual post box number.
The Managing Partner of JBC, Jitendra Gianchandani, said that the trend is on the rise, with new companies seeking economical options, as the emirates have realized that a huge business potential bridges the gap.
According to Gianchandani, Virtual Office is just right for investors who wish to operate a bank account with minimal resources, and just one or two visa requirement. With the e-office or virtual office, investors can open a bank account anywhere in UAE, and also import or export goods from any seaports or airports in UAE. In addition to this, annual audit is not compulsory and the presence of all shareholders is not necessary during incorporation, which further leads to cost savings.
Gianchandani revealed that his company has helped several companies to obtain Virtual Office, e-Office, and Flexi-Desk licenses till date.
Labels: Freezones, Ras Al Khaima, UAE
Investors prefer buying properties than renting them
Thursday, July 31, 2008
An increasing tendency has been noticed among UAE residents to purchase properties rather than opt for rentals, as mounting rental prices are compelling them to seek an alternative housing accommodation, reveals Chris Dommet, the CEO of John Charcoal, Dubai, a leading independent mortgage advisor firm.
Dommett explains that a steady increase has been noticed in rental prices of UAE during the last few years, and purchasing a property seems to be an attractive option to expats who are seeking to build equity from the considerable financial investments that they are making back at their home countries.
Gone are the days when expatriates allowed their hard earned income to vanish in the form of rent. Now the Dubai's expat community is more aware about the local mortgage market and home lending services too, have become more accessible.
It has been considered that the most important financial advantage of purchasing a home is building equity. The option of going ahead for a fixed monthly payment on a long term is also considered a major incentive, with the rents in Dubai increasing year after year.
The large volume and variety of mortgage options in the market, and the low interest rates, have been appealing to a large number of expats, who are eager to tap the booming real estate industry in the region and also are looking forward to buy a property of their own.
Taking the price of the property, and its approximate return in consideration, majority of investors are finding the purchase option more economical, when compared to the rents they are paying.
But, despite the advantages, there are still several expatriates who are still willing to pay exorbitant rent rates, either due to lack of proper understanding of local real estate market, or due to slight hesitation in getting themselves involved in the property buying process of the supposedly daunting UAE market.
Social BookmarkingDommett explains that a steady increase has been noticed in rental prices of UAE during the last few years, and purchasing a property seems to be an attractive option to expats who are seeking to build equity from the considerable financial investments that they are making back at their home countries.
Gone are the days when expatriates allowed their hard earned income to vanish in the form of rent. Now the Dubai's expat community is more aware about the local mortgage market and home lending services too, have become more accessible.
It has been considered that the most important financial advantage of purchasing a home is building equity. The option of going ahead for a fixed monthly payment on a long term is also considered a major incentive, with the rents in Dubai increasing year after year.
The large volume and variety of mortgage options in the market, and the low interest rates, have been appealing to a large number of expats, who are eager to tap the booming real estate industry in the region and also are looking forward to buy a property of their own.
Taking the price of the property, and its approximate return in consideration, majority of investors are finding the purchase option more economical, when compared to the rents they are paying.
But, despite the advantages, there are still several expatriates who are still willing to pay exorbitant rent rates, either due to lack of proper understanding of local real estate market, or due to slight hesitation in getting themselves involved in the property buying process of the supposedly daunting UAE market.
Labels: Latest News, Market Trends, Property Prices, UAE
Abu Dhabi housing rates higher than in Dubai for first time ever
Friday, July 18, 2008
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.
Social BookmarkingAccording 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
UAE mortgage market set for a boom
Thursday, July 17, 2008
The construction boom in UAE has resulted in major surge in its mortgage market, with investors being able to take advantage of various new incentives on the offer to purchase real estate.
According to a new survey, the mortgage market in UAE is currently worth Dh.20bn, and is likely to triple to Dh.64bn during the next three years.
Mortgage advisors are of the opinion that Investors are increasingly relying on mortgages to purchase property, with more than 71 percent of UAE investors requiring mortgage to finance their property purchase. This indicates that there exists considerable demand within local market, which shows no sign of slowing down.
This huge demand could be triggered by various factors, such as, increasingly maturing local mortgage market, with both seasoned and first-time investors taking advantage of attractive mortgage incentives to purchase real estate.
Increasing prices of properties are influencing the investments of property buyers, and low interest rates are continuing to fuel the demand. These offers, together with the introduction of new laws, pertaining to property ownership has enabled the UAE mortgage market to truly thrive.
Earlier, the investors had to either utilize their own funds or release equity on other properties in their home country, due to limited availability of local finance. However, the landscape of UAE mortgage market has seen a tremendous change with several new lenders, including the financial institutions and banks, entering the market to take advantage of the rising demand and work with a wide range of developers.
The survey report states that the UAE mortgage market is getting more complex, with mortgage approvals being one of the major reasons behind delays in purchase of projects by investors. Hence, despite several mortgage options being available to property buyers, obtaining mortgage can still be a major responsibility. A good mortgage broker, apart from identifying the best deal, will also have to facilitate the entire process. The property buyers watch for reputation of the lender, the pace at which the mortgage can be processed and other factors, apart from rate alone. The survey states that speed is everything in UAE property market.
The Survey was carried out last year by John Charcoal Dubai, an independent mortgage franchise operation. The Company works in close co-operation with leading financial institutions, real estate agents, and property developers to bring in speed and transparency to property buying process in the UAE.
According to a new survey, the mortgage market in UAE is currently worth Dh.20bn, and is likely to triple to Dh.64bn during the next three years.
Mortgage advisors are of the opinion that Investors are increasingly relying on mortgages to purchase property, with more than 71 percent of UAE investors requiring mortgage to finance their property purchase. This indicates that there exists considerable demand within local market, which shows no sign of slowing down.
This huge demand could be triggered by various factors, such as, increasingly maturing local mortgage market, with both seasoned and first-time investors taking advantage of attractive mortgage incentives to purchase real estate.
Increasing prices of properties are influencing the investments of property buyers, and low interest rates are continuing to fuel the demand. These offers, together with the introduction of new laws, pertaining to property ownership has enabled the UAE mortgage market to truly thrive.
Earlier, the investors had to either utilize their own funds or release equity on other properties in their home country, due to limited availability of local finance. However, the landscape of UAE mortgage market has seen a tremendous change with several new lenders, including the financial institutions and banks, entering the market to take advantage of the rising demand and work with a wide range of developers.
The survey report states that the UAE mortgage market is getting more complex, with mortgage approvals being one of the major reasons behind delays in purchase of projects by investors. Hence, despite several mortgage options being available to property buyers, obtaining mortgage can still be a major responsibility. A good mortgage broker, apart from identifying the best deal, will also have to facilitate the entire process. The property buyers watch for reputation of the lender, the pace at which the mortgage can be processed and other factors, apart from rate alone. The survey states that speed is everything in UAE property market.
The Survey was carried out last year by John Charcoal Dubai, an independent mortgage franchise operation. The Company works in close co-operation with leading financial institutions, real estate agents, and property developers to bring in speed and transparency to property buying process in the UAE.
Labels: Latest News, Mortgages, UAE
Abu Dhabi realty prices to appreciate more than in Dubai
Tuesday, June 17, 2008
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
Worldwide Property Show on May 22-24 at Grand Hyatt Dubai
Tuesday, May 20, 2008
With recent local property shows attracting record crowds, the UAE is becoming the place to be for foreign developers to sell their projects.
Cityscape Abu Dhabi which closed last week is just one example of why the world's battered real estate industry is putting the Gulf States and in particular the United Arab Emirates high on their sales and marketing agendas.
With the subprime crisis taking its toll across the States, and the knock on effect also hitting Europe, builders and agents are desperately looking for new territories to shift their residential and commercial property stock.
Dubai based organiser Mike Bridge from Dubai Shows Ltd said, "In the past 15 years, since we have been running our Worldwide Property Shows, we have never had some many agents and developers from such a wide area abroad requesting to participate. This week's show has in fact broken all records for us, with over 85 exhibitors representing 34 countries taking part, many travelling across the globe to market their projects to buyers here in Dubai."
With home owners across the States would be lucky if even one buyer walks up their garden path just to view, exhibitors in Abu Dhabi last week were actually having to employ security guards just to hold back eager buyers and investors all pushing to grab a piece of the latest tower block in the capital. Even the UAE government asked the organisers to extend the show by a day, to allow buyers the time to put down their deposits!
Bridge added, "This weeks Worldwide Property Show has a large number of US exhibitors taking part. One agent from Orlando told us that where in the past buyers were paying top dollar for his villas, developers are now offering the same homes at knock down prices and will include all the furnishings plus the pool as well. He added that due to the weak dollar this region has actually seen an increase in rental income as Europeans in particular flock to the theme parks. Mickey he told us is it seems...subprime proof!"
"Many UAE based residents who have made a reasonable returns on their property portfolios here, are prepared to spread their buying power, and are now able to pick up some exceptional deals overseas, while remaining active in the local market as well," said Bridge.
The Worldwide Property Shows are being held on May 22nd-24th at the Grand Hyatt Dubai and on May 28th-31st at the Bahrain International Exhibition Centre.
For further inforamtion contact: Dubai Shows Ltd, Tel +9714 321 6166, Mobile +97150 6535623, Email: Pooja@dubaishows.com
Social BookmarkingCityscape Abu Dhabi which closed last week is just one example of why the world's battered real estate industry is putting the Gulf States and in particular the United Arab Emirates high on their sales and marketing agendas.
With the subprime crisis taking its toll across the States, and the knock on effect also hitting Europe, builders and agents are desperately looking for new territories to shift their residential and commercial property stock.
Dubai based organiser Mike Bridge from Dubai Shows Ltd said, "In the past 15 years, since we have been running our Worldwide Property Shows, we have never had some many agents and developers from such a wide area abroad requesting to participate. This week's show has in fact broken all records for us, with over 85 exhibitors representing 34 countries taking part, many travelling across the globe to market their projects to buyers here in Dubai."
With home owners across the States would be lucky if even one buyer walks up their garden path just to view, exhibitors in Abu Dhabi last week were actually having to employ security guards just to hold back eager buyers and investors all pushing to grab a piece of the latest tower block in the capital. Even the UAE government asked the organisers to extend the show by a day, to allow buyers the time to put down their deposits!
Bridge added, "This weeks Worldwide Property Show has a large number of US exhibitors taking part. One agent from Orlando told us that where in the past buyers were paying top dollar for his villas, developers are now offering the same homes at knock down prices and will include all the furnishings plus the pool as well. He added that due to the weak dollar this region has actually seen an increase in rental income as Europeans in particular flock to the theme parks. Mickey he told us is it seems...subprime proof!"
"Many UAE based residents who have made a reasonable returns on their property portfolios here, are prepared to spread their buying power, and are now able to pick up some exceptional deals overseas, while remaining active in the local market as well," said Bridge.
The Worldwide Property Shows are being held on May 22nd-24th at the Grand Hyatt Dubai and on May 28th-31st at the Bahrain International Exhibition Centre.
For further inforamtion contact: Dubai Shows Ltd, Tel +9714 321 6166, Mobile +97150 6535623, Email: Pooja@dubaishows.com
Labels: Property-show, UAE
UAE - the most preferred choice of property investment in the region
Tuesday, April 22, 2008
Majority of foreign investors have purchased properties in the UAE than in any other Gulf States, reveals a recent survey by ArabianBusiness.com (Property Survey 2008).
About 95.5% of the respondents in the survey agreed that UAE was their popular choice of investment, being the leading market in the Gulf real estate boom.
According to the survey, majority of foreigners are purchasing properties as an investment, and are of the opinion that UAE would be the best Gulf market to yield maximum returns over the next two years.
Ever since the government opened its market for foreigners in 2002, the housing and rental prices have been on the increase, more so in recent years, due to housing shortage and high cost of construction.
The property prices in Abu Dhabi are likely to shoot up by 25% this year, according to a recent report by HSBC. In Dubai, a 15% rise is expected, as revealed by Standard Chartered Bank.
Among the 3000 respondents who participated in the survey, about 1.24% have purchased properties in Qatar, 1.04% in Bahrain, 0.52% in Saud Arabia, and 0.21% in Oman and Kuwait.
According to the survey, UAE is much ahead than Qatar, Saudi Arabia, Oman, Bahrain and Kuwait when it comes to offering best returns on buyer investments within a short-term.
For purchase of property, almost all nationalities favoured UAE over the other Gulf states. However, 10% of New Zealand nationalities had purchased properties in Bahrain, while 12.5% bought from Netherlands and Qatar.
The survey pointed out that no nationality had invested in the Kuwait realty sector, except Indians. It was also found that as majority of expatriates in the Gulf are Indians, they were the most active investors in the region, purchasing property in all the six Gulf States.
The survey pointed out that no nationality had invested in the Kuwait realty sector, except Indians. It was also found that as majority of expatriates in the Gulf are Indians, they were the most active investors in the region, purchasing property in all the six Gulf States.
Labels: Market Trends, Middle-East, Property Prices, UAE
UAE mortgage market to witness a major leap
Thursday, April 10, 2008
The mortgage market in UAE will witness a major leap from Dh.20bn to Dh.64bn towards end of this year, over a span of next three years, with more than 60 percent of home finance getting Sharia-compliant, revealed the officials.
Sabahuddin Azmi, Specialist in Islamic banking and finance, revealed that UAE housing market had an outstanding credit of Dh.17billion towards end of 2006, and is now expected to touch Dh.20bn towards end of 2008. This may rise even further by 2011, with a surge in real estate activities, touching Dh.419bn during this period.
Azmi said that Amlak Finance and Tamweel, both Sharaia-compliant companies are dominating the UAE housing finance market at present, with 35 percent and 25 percent shares respectively.
Azmi was speaking during the concluding day of the two-day summit, involving international panel of thirteen financial experts, who were discussing the differences between Western family wealth management policies and Islamic Sharia-compliant principles.
The summit was held under the patronage of Shaikh Saud Bin Saqr Al Qasimi, the Crown Prince and Deputy Ruler of Ras Al Khaimah.
Social BookmarkingSabahuddin Azmi, Specialist in Islamic banking and finance, revealed that UAE housing market had an outstanding credit of Dh.17billion towards end of 2006, and is now expected to touch Dh.20bn towards end of 2008. This may rise even further by 2011, with a surge in real estate activities, touching Dh.419bn during this period.
Azmi said that Amlak Finance and Tamweel, both Sharaia-compliant companies are dominating the UAE housing finance market at present, with 35 percent and 25 percent shares respectively.
Azmi was speaking during the concluding day of the two-day summit, involving international panel of thirteen financial experts, who were discussing the differences between Western family wealth management policies and Islamic Sharia-compliant principles.
The summit was held under the patronage of Shaikh Saud Bin Saqr Al Qasimi, the Crown Prince and Deputy Ruler of Ras Al Khaimah.
Gulf Realty Companies likely to report strong growth in 2008
Tuesday, April 01, 2008
The realty companies in Gulf, whose profits have increased by more than 20% last year, are expected to continue their strong growth in 2008, remaining immune to global economic slowdown, maintaining favorable market conditions and foreign investments, say analysts.
A Real Estate Analyst, Stefan Schurmann, at EFG Hermes, said "The fundamentals for the Gulf region in 2008 are good, and this will help real estate developers in the region to post healthy profits."
Delivery of projects is happening, and residential units are being delivered and booked accordingly, and the realty companies are re-evaluating their land value and lowering interest rate, which is, in turn, motivating people to buy, he said.
The net income of 17, out of top 20 realty companies in the six member GCC region increased to 21%, while their combined assets increased to 55%, touching $46,98bn, according to Zawya Investor data.
Schurmann said that Gulf realty developers are benefiting from the global slowdown with foreign investors putting their money into the region. An increasingly sophisticated legal framework is also helping to attract international buyers.
The London-based MEED (Middle East Economic Digest) indicates that Kuwait, Bahrain, Saudi Arabia, UAE and Qatar are spending $1.45 trillion on an average on real estate projects.
The Gulf's largest construction market, the UAE, has approximately $223.8bn worth of realty projects under construction, with some of the main benefactors of construction boom.
Deyaar Development has seen a 29% increase in profit, touching $145.7million, with the value of projects touching Dh.8bn in 2207, as against Dh.2.4bn in 2006.
Union Properties had a 12% profit, touching $186.5mn, due to increase in profit margin from sales and management.
Emaar Properties, the largest realty developer in the region, has however, recorded only a small increase of 3.2% in profit, touching Dh.6.57bn last year, due to its diversification activities. Gowever, Emaar expects its profit to be in line with 2007 this year too, while a few analysts expect Emaar to perform even better.
In Abu Dhabi, Sorouh Real Estate and Aldar Properties posted strong gains with the property market continuing to boom. Aldar's profit soared to 29%, touching $342.3mn, while Sorough saw its profit climbing by 55%, touching $528.5mn.
Even the Saudi-based realty companies, involved in construction of 'economic cities' reported strong results, as demand for property in the Kingdom continued to grow.
Social BookmarkingA Real Estate Analyst, Stefan Schurmann, at EFG Hermes, said "The fundamentals for the Gulf region in 2008 are good, and this will help real estate developers in the region to post healthy profits."
Delivery of projects is happening, and residential units are being delivered and booked accordingly, and the realty companies are re-evaluating their land value and lowering interest rate, which is, in turn, motivating people to buy, he said.
The net income of 17, out of top 20 realty companies in the six member GCC region increased to 21%, while their combined assets increased to 55%, touching $46,98bn, according to Zawya Investor data.
Schurmann said that Gulf realty developers are benefiting from the global slowdown with foreign investors putting their money into the region. An increasingly sophisticated legal framework is also helping to attract international buyers.
The London-based MEED (Middle East Economic Digest) indicates that Kuwait, Bahrain, Saudi Arabia, UAE and Qatar are spending $1.45 trillion on an average on real estate projects.
The Gulf's largest construction market, the UAE, has approximately $223.8bn worth of realty projects under construction, with some of the main benefactors of construction boom.
Deyaar Development has seen a 29% increase in profit, touching $145.7million, with the value of projects touching Dh.8bn in 2207, as against Dh.2.4bn in 2006.
Union Properties had a 12% profit, touching $186.5mn, due to increase in profit margin from sales and management.
Emaar Properties, the largest realty developer in the region, has however, recorded only a small increase of 3.2% in profit, touching Dh.6.57bn last year, due to its diversification activities. Gowever, Emaar expects its profit to be in line with 2007 this year too, while a few analysts expect Emaar to perform even better.
In Abu Dhabi, Sorouh Real Estate and Aldar Properties posted strong gains with the property market continuing to boom. Aldar's profit soared to 29%, touching $342.3mn, while Sorough saw its profit climbing by 55%, touching $528.5mn.
Even the Saudi-based realty companies, involved in construction of 'economic cities' reported strong results, as demand for property in the Kingdom continued to grow.
Labels: Latest News, Market Trends, Middle-East, UAE
UAE Realty market still high in demand
Monday, March 24, 2008
The huge numbers of participators, investors and buyers who thronged the R&R Local Property Show held in Dubai recently, indicates the strong demand for real estate in the UAE.
The Marketing Director of DSL Exhibitions, Tessa Morris says "The R&R Local Property Show is a true reflection and display of UAE properties. Being one of the oldest exhibitions in the UAE, it is also a fair gauge of market sentiment."
"The show witnessed large numbers of visitors than previous shows, and brisk businesses were being conducted, which is a clear indication that suggests that we are nowhere near the peak of the market. Investor interest is a major factor and both institutional as well as individual investors still foresee an opportunity for gains. However, the end-user confidence contributes considerably to the demand," Tessa said.
The focus was not centered on Dubai property market alone, but also in the market of Ajman, where there is much demand for affordable properties, at present. To add to this, the excellent payment plans direct from developers makes Northern Emirates a more viable opportunity.
Social BookmarkingThe Marketing Director of DSL Exhibitions, Tessa Morris says "The R&R Local Property Show is a true reflection and display of UAE properties. Being one of the oldest exhibitions in the UAE, it is also a fair gauge of market sentiment."
"The show witnessed large numbers of visitors than previous shows, and brisk businesses were being conducted, which is a clear indication that suggests that we are nowhere near the peak of the market. Investor interest is a major factor and both institutional as well as individual investors still foresee an opportunity for gains. However, the end-user confidence contributes considerably to the demand," Tessa said.
The focus was not centered on Dubai property market alone, but also in the market of Ajman, where there is much demand for affordable properties, at present. To add to this, the excellent payment plans direct from developers makes Northern Emirates a more viable opportunity.
Labels: Real Estate News, UAE
Real Estate Sector biggest contributor to UAE's GDP last year
Tuesday, March 11, 2008
The UAE economy has achieved significant growth record of 7.4 percent in 2007 over the previous year, with the gross domestic product (GDP) touching Dh.698bn, announced the UAE Ministry of Economy.
As per the Ministry's report, the biggest contributor to the UAE's GDP is the fast emerging real estate sector. During 2007 the real estate contributed 8 percent to the country's GDP, with an investment of Dh.25.8billion. The government has shown considerable interest in assisting UAE nationals to own free residential units through various residential plans that offer good standard of living and stability.
About 23.1billion (16 percent of total investment) has been put forward for establishment of developed infrastructure, including airport expansions, internal and external road networks, bridge and tunnel constructions and communications.
The size of fixed investments in 2007 has grown to Dh.144.5 billion, as against Dh.121 billion in 2006. The investment percentage to domestic product has touched 20.7 percent in 2007. Although the real estate and manufacturing sectors, jointly, contributed 35 percent of the total investments in the country during 2007, industries such as medicine, petrochemical, building materials, and food continued to surge.
Social BookmarkingAs per the Ministry's report, the biggest contributor to the UAE's GDP is the fast emerging real estate sector. During 2007 the real estate contributed 8 percent to the country's GDP, with an investment of Dh.25.8billion. The government has shown considerable interest in assisting UAE nationals to own free residential units through various residential plans that offer good standard of living and stability.
About 23.1billion (16 percent of total investment) has been put forward for establishment of developed infrastructure, including airport expansions, internal and external road networks, bridge and tunnel constructions and communications.
The size of fixed investments in 2007 has grown to Dh.144.5 billion, as against Dh.121 billion in 2006. The investment percentage to domestic product has touched 20.7 percent in 2007. Although the real estate and manufacturing sectors, jointly, contributed 35 percent of the total investments in the country during 2007, industries such as medicine, petrochemical, building materials, and food continued to surge.
Labels: Latest News, Market Trends, UAE
ACI plans expansion in UAE property market
Monday, February 25, 2008
ACI, the real estate firm that is an affiliate of Alternative Capital Investments, has revealed its plans to expand into Dubai, with its Dh.10billion worth development portfolio of new projects, and also make its foray into Abu Dhabi and Ajman property markets.
The Managing Director of ACI, Robin Loh-mann, said "There will be a total of seven buildings in the Abu Dhabi project, with first five likely to be launched shortly on Reem Island. We plan to diversify. We are on the look out for strategic alliances with major players in Abu Dhabi and Ajman. We will also focus on the Dubai Waterfront and Dubai Laggons this year."
Lohmann said that the company also holds another development on The World, and are keen on entering the Ajman market. He opinioned that all emirates are likely to benefit from the UAE market, as the Abu Dhabi market is picking up at a rapid pace.
He continued "Abu Dhabi is being developed in a manner that is a little different from Dubai. They are trying to include a little culture also in their projects, with things like the Guggenheim and the Louvre. They are trying to do things differently."
Lohmann said property prices in Abu Dhabi have nearly doubled during the past seven to eight months.
"We are eyeing on Abu Dhabi, as it is a totally different market," he said.
As for Ajman, Lohmann said that the development would begin with one residential and one commercial tower. The value of the Ajman project is yet to be revealed.
ACI is also planning to open another office in Doha during second half of the year. The 'Trilogy Towers', worth Dh.2.2bn, involving German sporting legends, Michael Schumacher and Nikki Lauda, will conclude on Sunday, after the launch of the Boris Becker Business Tower.
The Managing Director of ACI, Robin Loh-mann, said "There will be a total of seven buildings in the Abu Dhabi project, with first five likely to be launched shortly on Reem Island. We plan to diversify. We are on the look out for strategic alliances with major players in Abu Dhabi and Ajman. We will also focus on the Dubai Waterfront and Dubai Laggons this year."
Lohmann said that the company also holds another development on The World, and are keen on entering the Ajman market. He opinioned that all emirates are likely to benefit from the UAE market, as the Abu Dhabi market is picking up at a rapid pace.
He continued "Abu Dhabi is being developed in a manner that is a little different from Dubai. They are trying to include a little culture also in their projects, with things like the Guggenheim and the Louvre. They are trying to do things differently."
Lohmann said property prices in Abu Dhabi have nearly doubled during the past seven to eight months.
"We are eyeing on Abu Dhabi, as it is a totally different market," he said.
As for Ajman, Lohmann said that the development would begin with one residential and one commercial tower. The value of the Ajman project is yet to be revealed.
ACI is also planning to open another office in Doha during second half of the year. The 'Trilogy Towers', worth Dh.2.2bn, involving German sporting legends, Michael Schumacher and Nikki Lauda, will conclude on Sunday, after the launch of the Boris Becker Business Tower.