Dubai Properties

Construction Updates

Properties in UAE

Country Profile

Property Listing

Resources




Vol:07 Feb/08

Abu Dhabi real estate gears up for massive growth

Abu Dhabi real estate gears up for massive growth

Abu Dhabi has been witnessing huge investor interest ever since Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE and the Ruler of Abu Dhabi, issued the new Real Estate Law for the emirate in 2005. The capital as well as the richest emirate of the UAE, Abu Dhabi now allows the non-UAE nationals as well as foreign investors to invest in leasehold property. However, the leases are available either on a 50 or 99 year basis and currently relate to property rather than land. This implies that the non-nationals can presently invest only in apartments.

The new property ownership law n o.19 issued in 2005 by the Abu Dhabi government has accelerated the planning and launch of several iconic projects throughout the city. The major real estate developments launched in Abu Dhabi are:

 
»
Al Raha Beach Development – Built along side 5.2 million sq m of natural beachfront, this development will provide world class residential, commercial, cultural, entertainment and public facilities to almost 120,000 residents on a 99-year renewable lease.
»
Al Raha Gardens – Built on 665,000 sq m of landscaped area, it is t he first development to be offered to the UAE Nationals in Abu Dhabi on an ownership basis incorporating villas, townhouses, schools, kindergarten and retail & dining outlets to be occupied by 120,000 people.
»
Al Reem Island – This project is to be carried out in phases on 68 million sq m area and will be occupied by 280,000 residents.
»
Saadiyat Island - An Island sanctuary off the coast of Abu Dhabi meaning ‘ Island of Happiness’, it is the emirates’ flagship development. An island destination as well as a modern, residential community, Saadiyat will be home to an estimated 150,000 residents with access to leisure and tourism facilities, as well as civic and cultural amenities.
»
Yas Island – Spread over a total land area 2500 hectares, it will feature leisure, sports and entertainment attractions such as a world-class motor sports racetrack, signature hotels, the Ferrari theme park, water park,

Protect your home from unwelcome guests …

Home Safety by Dubai Police is one of the community security services rendered by the General Department for Criminal Investigations. You could contact Dubai Police via the internet to protect your residence during long periods of absence either during summer vacation or for other reasons.

  • Electronic Crime Protection
  • Reducing the Scope of Crime Commitment
  • Prevention of Crime before Occurrence
  • Enhancement and Encouragement of Follow-up of security measures
  • Communication of the handicapped to protect their properties
  • Spreading trust an security amongst the public during travel aboard

For further assistance please call:

Captain Rashid Abdrahman Bin Dhabooi (Head of the Team)

Mobile : 050-8806010
Office: 04 203 36324 (7:30-2:30)
04 262 2861 (7:30-2:30)

[ Click here ]
retail area, links and parkland golf courses, marinas, polo clubs, apartments, villas and numerous food & beverage outlets.
»
Central Market – It is a turnkey project by ALDAR Properties and occupies 5 hectares of prime city space.
»
Danet Abu Dhabi – This real-estate project offers 34 multi-storied commercial and residential towers initially to the UAE Nationals and afterwards to GCC Nationals.
»
Desert Towers – Located in Mussafah, it is a residential community mainly aiming middle-income community.

Abu Dhabi Government has drawn the development plan for the city - ‘Plan Abu Dhabi 2030: Urban Structure Framework Plan’ for the next quarter of a century. The plan aims to strengthen the ongoing advancement of Abu Dhabi to emerge as a global capital city. According to the plan, Abu Dhabi’s population is projected to grow to over 3 million people by 2030. The plan provides for an array of affordable housing options for the residents. It also specifies the land uses, building heights and transport plans for the city through 10 individual policy statements.

Studies show that Abu Dhabi 's population growth has averaged 7.3% annually in the last 4 years. I n the coming 6 years, i.e., by 2013, the population of Abu Dhabi will touch 1.3 million and grow to over 3 million people by 2030 . This suggests that there will be ever increasing demand for more residential and commercial spaces in the city. The demand for other infrastructure facilities directly related population growth such as commercial spaces, retail spaces, industries, hospitals and schools would also grow.

Expected growth of Abu Dhabi Population (Approx. figures)*
Expected growth in demand for Residential Units (Approx. figures)*

Current demand for residential property across all section of Abu Dhabi’s demographic gamut has exceeded available supply. The rents have surged 22% while property prices have increased 18% in the second half of 2007. According to s ome estimates, the shortage of houses in the emirate is as high as 50,000 for 2008. At present, the residential projects worth more than Dh200 billion are under way in Abu Dhabi. The volume of construction activity in Abu Dhabi is expected to outpace Dubai within 4 years. There will be demand between 225,000 and 250,000 of new housing units in next 10 years . This building boom will allow the population of the city to double within a decade.

Expected growth in demand for Offices (Approx. figures)*

Expected growth of Industrial Sector (Approx. figures)*

The growth in hospitality industry due to increase in leisure and business tourist is also another prime reasons of the realty boom in Abu Dhabi. The city plans to be a world leader in outstanding meetings, incentives, conferences and exhibitions (MICE) venue. In 2005, Abu Dhabi introduced an extensive investment programme to promote the emirate as a tourist destination. 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%. The new hotels will add 21,000 rooms in the next 6 years from the current 10,000 of which 45% will be 5-star category

Expected growth in number of Hotel Rooms (Approx. figures)*

Expected growth in Tourist Inflow (Approx. figures)*

 

Abu Dhabi Growth Chart (2007-2030)**

Growth

2007

2013

2020

2030

Population

930,000

1.3 million

2 million

3.1 million

Residential Units

180,000

251,000

411,000

686,000

Office Space (Sq M)

1.4 million

2.5 million

3.5 million

7.5 million

Industrial Space (Sq M)

4 million

6.5 million

10 million

15 million

Hospitals (Bed)

2800

4500

6500

10,000

Schools

236

330

450

650

Tourist (Visits)

1.8 million

2.3 million

4.9 million

7.9 million

Hotels (Rooms)

10,000

21,000

49,000

74,000

Golf Clubs

03

10

18

25

The two leading drivers of the UAE economy, the real estate and construction sectors, are predicted to deliver compound annual growth rates of 24.4% and 29.6% respectively by 2010. These two sectors are also expected to contribute around 23% of the country’s combined economic value by 2010 compared to 16% in 2006. The construction sector has contributed over AED 40 billion to Abu Dhabi’s GDP in 2007 while the real estate sector is expected to attract AED 1 trillion investments in the long-term.

Abu Dhabi offers one of the most favorable outlooks in the region for real estate investors. The rents are expected to further escalate, while capital values will be supported by high and rising demand. Therefore, it can be safely concluded that the real estate boom in Abu Dhabi is here to stay.

*Source: Gowealthy Research Team
**Data Source: Abu Dhabi Government