Vibrant projects set to be launched in 2018 are creating healthy competition among developers who are striving to come up with unique and sophisticated concepts
A capital performance
Abu Dhabi government’s introduction of new regulations has had a welcome effect on the real estate market. It all bodes well for 2018, says Said Abu Laila, Managing director at Property Shop Investment
The Abu Dhabi real estate market witnessed a healthy correction and streamlining from the industry in 2017. We witnessed a price correction in the investment zone, including both buying and leasing properties – yes, it was a slight correction, but it led to enormous positive results.
The price correction was supported by the Abu Dhabi Government which implemented new rules and regulations such as monetary escrow accounts – which are more secure for buyers – and title deeds for the off-plan projects. Plus they brought new projects to the launch stage, approved by the municipality.
All the above-mentioned factors generated more trust in the capital’s real estate market, and gave investors and end–users the confidence to buy new properties.
Along with this situation, Abu Dhabi developers have created different schemes and products that cater to buyer’s needs and expectations by offering flexible payment plans (such as the 1 per cent payment plan option), bulk discounts for investors, spacious units, and unique properties in prime locations with affordable prices.
This all led to positive interactions in the market, where buyers found the ideal properties for their investment. The activities in the Abu Dhabi real estate market in 2017 boosted our confidence and gave us a clearer insight into the upcoming projects in 2018 and the stability of the market.
The vibrant projects set to be launched in 2018 are creating healthy competition among developers who are striving to come up with unique and sophisticated concepts with premium quality that will attract the punters.
New projects included mid-market housing at the Al Reem Island and Yas Island communities, as well as 2,500 affordable villa projects in the Ghantoot area.
As of September last year, approximately 6,270 units were scheduled for handover for the remainder of the year, though actual completions varied significantly. The key locations for ongoing supply are Reem Island and Yas Island, which had more than 1,500 units each scheduled for completion in 2017.
The declines of the apartment and villa rents in Abu Dhabi were more pronounced among the two-bedrooms in Al Raha Beach, and four-bedroom villas in Al Raha Gardens. In my opinion regarding rent in Abu Dhabi, the corrections in the market were very healthy as it encouraged lots of improvements in the communities, such as healthy offers, and diverse options in the market.
The factors that determine rental prices simply became clearer to all parties, which includes the quality of services at the property, facility management, location and so on. The tenant was empowered and could determine whether to upgrade the service or minimise the rental budget whilst getting the same premium quality.
These corrections awakened the landlords who realised that to be more stable in their investment, they had to offer a more high-end property and comprehensive services. By taking such action, it boosted their confidence in investing in the Abu Dhabi real estate market.
We expect moving forward that there will be a renewed drive to invest in Abu Dhabi as the returns look good – as well as the strong economic indicators in the emirate itself. We strongly believe that Abu Dhabi real estate will continue to establish and sustain a better living for all.
