Cluttons: Abu Dhabi Property Market Q2 2011
Download Now
Latest News
The road to home finance has been a long one for the Kingdom, but with its highly anticipated mortgage law edging ever closer to ratification, would-be homeowners and financial institutions are gearing up for a new era of opportunity.
With the announcement this year of a US$66.7 billion initiative to address the demand-supply imbalance in the Kingdom’s housing market, social infrastructure spend is topping the Government agenda as it focuses on building affordable homes for the future.
The South-East Asian island has seen a number of distinctive developments come to fruition over the past few years as the country further establishes itself.
Some of the most active construction sites in Abu Dhabi can be found on the mainland, at locations such as Al Falah.
The Urban Planning Council (UPC) formulated the Emirati Family Housing Programme (EFHP) to provide homes for Nationals, to meet demand as the population grows and also to improve housing quality. It is envisaged that the properties will be gifted to Emirati families on completion. This is a continuation of the patriarchal stance of the Government, originally established by the founder of the UAE – the late Sheik Zayed bin Sultan Al Nahyan, to provide for the people and to distribute the oil-based wealth.
One of the largest of the projects is at Al Falah, to the east of the E11 Highway and close to Al Reef. Al Falah is being developed by Aldar and will include almost 5,000, three to five bedroom villas on completion. The project is divided into five ‘villages’, each with its own mosque, shops, schools and other community facilities. A ‘town centre’ will also be added, with additional facilities. Approximately 1,000 villas are expected to be completed by the end of 2011 with the first residents arriving in 2012.
Sorouh are also developing two large Emirati housing projects for the Government, in the Capital. Watani is located between Khalifa City A and the Abu Dhabi Golf Course. It will include over 1,300 villas and 1,100 apartments, together with community facilities and is expected to be completed in 2012. The second project is located at Shamkha, to the south of Al Falah and east of Khalifa City B. This project is currently at the planning stage, but construction is due to begin later this year and be completed in 2013. There will be over 5,000 villas and 1,000 apartments as well as extensive community facilities.
A number of other, smaller projects are also planned for Abu Dhabi, as well as 20,000 units in Al Ain and further developments in Al Gharbia. Again, this is part of the wider goal of ensuring that Nationals throughout the Emirate of Abu Dhabi benefit from the same level of living standards and facilities.
For Aldar and Sorouh, these public sector projects are a welcome source of secure income after two turbulent years in the private sector. There is little ‘up-front’ outlay, as the land plots are supplied by the Government and stage-payments are paid during the construction period, which ensures a regular cashflow. Previously, when the sale of offplan units stalled, developers resorted to selling off their land-banks to generate cashflow and to fund ongoing construction works. Fortunately, the EFHP schemes will now provide a steady income flow, for many years ahead.
Download Now
Your Comments
You must be logged in to add comments.