Experts See Robust Demand For Property In Abu Dhabi

Demand for property in Abu Dhabi is expected to peak at 70,000 units in the next three years, according to experts in the real estate sector.

Reacting to the government move Dr Hani Al Shamma, CEO of Bloom Properties said any initiative to support the end-users in the real estate sector is a welcome development. But the support systems must be targeted to them and the speculators should not be allowed to corner the benefits. According to him Abu Dhabi will have a mature and vibrant real estate sector in 2010. Abu Dhabi’s real estate sector will be free from any fall out of the current economic crisis by the end of this year, thanks to the measures undertaken by the government and those concerned with the property sector. Emphasising that expats constituted a significant market in UAE, he said measures like giving residency rights and liberalizing the free-hold rights would accelerate the revival of the real estate sector here. The developers by and large feel that most major speculators have exited the real estate market because of the global crisis and that the market is now dominated by medium and long term investors. This will contribute to stabilising the market. Terming the move of the government to infuse credit into the real estate sector as a “great leap forward,” Ziad Bushnaq said the UAE government has already played a major role in minimising the impact of the global crisis by injecting massive funds into the banking sector and the economy. UAE banks, however, have adopted a more cautious lending policy because of the crisis and this has contributed to the feeling that financing is receding, he said.

Pointing out that Abu Dhabi has earmarked massive investments to develop its infrastructure, Jamil Kablawi, marketing and sales manager at Plus Properties, said the government appears to be determined to push ahead with this drive and attract more capital mainly from the private sector. Such plans will of course have positive effects on the real estate and all other sectors in the emirate, he said. He said property investment return in Abu Dhabi is still high because of the strong demand and supply bottlenecks. “The global crisis is having a minor impact on the market. But this should prompt developers to introduce more incentives for their customers to maintain the momentum in this sector and honour their commitments.