Abu Dhabi realty on solid growth track despite global slowdown

Business Bureau, Gulf Today

The Abu Dhabi’s real estate market is on solid growth trajectory despite the global trends. The local and foreign investors are upbeat about the capital’s burgeoning property market. Reportage Properties, a leading real estate developer, headquartered in Abu Dhabi, is going ahead  on fast track with  its  projects in Abu Dhabi, mainly in Masdar City and Al Raha Beach.

“The company recently completed the delivery of the units at “Leonardo Residence”  in Masdar City, which offers 177 apartments, including 122 studios, 48 one-room apartments, 16 two-bedroom apartments and one 3-bedroom apartment, and covers a land area of 4250 square meters”, said Islam Ahmad Sulaiman, CEO for operations .

Sulaiman, added that the project  with its  unique location in Masdar city, one of the most sustainable cities in the world, provides sustainable services to the residents. He said that  the project was sold and fully occupied.

Sulaiman conveyed that the company is also in the process of developing “Al Waha Residence” project in Masdar City, where the construction works are on schedule  and the delivery of the units will start  during the second quarter of 2021. The project offers 612 apartments, including 310 studios, 256 one -room, 44 two-room apartments and only two 3-room apartments, covering an area of 8371 square meters.

Sulaiman added that the company’s projects in Masdar City include “The GATE” (under study), which will provide about 420 apartments. There is also another project in  Masdar City  being under study. He also  said  that “Reportage”  is interested in the  starting  another project in Masdar City which  is one of the most important investment areas in Abu Dhabi. The company is keen to develop sustainable urban projects that provide sustainable housing solutions that contribute to the preservation of the environment and  meet  the objectives of sustainable development.

The CEO of “Reportage Properties” stressed  also the importance of the recent law on the amendment of some articles of Law No. 19 of 2005  relating to real estate ownership in Abu Dhabi to support the real estate market and to promote activity in the investment zones in Abu Dhabi. Under the new law, non-citizens are allowed full ownership  in properties. Listed  companies, which do not exceed 49% of non-UAE nationals, are  also allowed to own real estate  projects. Sulaiman said that the construction of their  project in Al Raha Beach is in progress. The company is developing “AL RAHA LOFTS 1”  which  provides 164 units, including 14 studios, 96 one-room apartments, 31 two-room apartments and 8 3 and 4 room  apartments , covering an area of 6663 square meters. There is also  “AL RAHA LOFTS 2” ,with a total of 110 apartments, including 22 studios, 52 one-room apartments, 24 two-room apartments and 12 three-room apartments, Covering an area of 5364 square meters.

The construction works  at “AL RAHA LOFTS 1” and  “AL RAHA LOFTS 2” exceed 20%, and are expected to be delivered during the first half of 2021. The two projects include retail space, facilities and services such as swimming pools, jacuzzi, gym and tennis court.

The company is also considering projects in a number of key investment areas in Abu Dhabi, including Al-Mariya Island, Al Reem Island and Yas Island. Mr. Sulaiman  added that the company is interested in developing quality projects and providing unique and non-traditional services to customers.

He concluded that the real estate sector in Abu Dhabi is witnessing a period of improvement in activity, amid positive signs of increased demand, especially with the launch of many initiatives and incentives to support the market.

Meanwhile,  most sectors across UAE’s real estate market remained challenged during the first half of 2019, the various government initiatives launched recently are expected to boost sentiment and drive demand over the coming months.  In the year ahead, market performance will heavily depend on how quickly these initiatives have an impact, outlines JLL’s Q2 2019 UAE Market report.

The general economic environment has also shown a slight uplift, with UAE GDP growing by 2.2% in the first quarter of 2019, supported by a robust government, according to the Central Bank of UAE.

In Q2, the UAE government announced a number of initiatives, with the aim of driving economic diversification and stimulating weakened market demand. The long-awaited freehold law was finally enacted in Abu Dhabi, allowing foreigners to own land and property within the emirate’s investment areas on a freehold basis for the first time. The new law aims to encourage foreign investment and provide investors with more certainty. Meanwhile, Dubai saw the launch of a new initiative for permanent residency called ‘Golden Card’, which aims to provide permanent residency for investors and exceptional workers in the fields of health, engineering, science and art.