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Series of legislative reforms in 2005 governing property ownership
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Surge in local as well as expatriate population
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Demand for residential/offices units outstrip supply
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Greater need for retail spaces and hotel rooms
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Phenomenal growth witnessed in Dubai real estate
Abu Dhabi is surging ahead with implementation of ‘Plan Abu Dhabi 2030: Urban Structure Framework Plan', an endeavor to make the emirate emerge as a global capital city. This plan involves development of real estate projects in the city in line with real estate laws and urban & environmental planning.
There are approximately 14,000 villas and 18,000 apartments worth Dh200 billion under various stages of construction in Abu Dhabi. For the year 2008, the supply is projected at 24,000 with just 11,000 units scheduled for delivery. There will be only 150,000 new units by 2009 for supply to catch up the demand.
The continuous expansion of existing organizations and establishment of new ones have created a huge demand for commercial spaces in Abu Dhabi. The development of several free zones have fuelled the demand further as there is rise in licensed businesses at 5% annual rate. To fulfill this growing demand, 415,000 sq m of office space is under construction in Abu Dhabi.
Abu Dhabi is targeting a tourist inflow of 3 million per annum over the next decade. In addition, occupancy rate in hotels in Abu Dhabi have touched 90%. Abu Dhabi has raised its hotel guest projects over the next 5 years and predicts 2.7 million hotel guests by the end of 2012 according to latest 5-year plan. The new hotels will add 25,000 rooms by end of 2012 from the existing 10,000 of which 45% will be 5-star category.
The construction sector has contributed over Dh40 billion to Abu Dhabi's GDP in 2007 while the real estate sector is expected to attract Dh1 trillion investments in the long-term. Thus, it can be concluded that Abu Dhabi offers the most favorable outlook for real estate investors.
