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The Abu Dhabi real estate boom curtails massive price hikes. |
Despite having one of the world’s highest per capita incomes and spectacular real estate investment growth rates, the UAE capital Abu Dhabi has successfully curtailed inflation in property prices. The emirate now plays host to some $306 billion worth of mega investment and infrastructure projects. Economists highlighted the extremely high level of occupancy in Abu Dhabi as one of the key factors that is encouraging real estate developers to its market. The level of occupancy witnessed a significant increase in 2007, with a projected supply of 1,100 units compared to a demand for 21,900 units.
Commenting on the UAE capital's remarkable property boom, Dr. Abdul-Rahman Al-Tassan, CEO of RAKAA Properties, one of the region's preeminent real estate companies, said:" all market indicators drive home the fact that the Abu Dhabi's real estate industry is growing from strength to strength. Though lower in price than those in Singapore, Mumbai and Hong Kong, Abu Dhabi property developments guarantee more lucrative long term results."
The emirate's vigilance and continued monitoring of inflation rates, taking preventive measures to keep them in check, are all factors that have helped woo more investors. Following implementation of the 5% rental cap in Dubai, Abu Dhabi has recently suspended bank real estate investment loans in excess of Dh70 million, limiting rent hikes to an annual maximum of 5%, measures that have contributed to stabilizing the property market and stimulated reasonable growth rates.
