The giant awakens: Abu Dhabi real estate poised for significant growth
- by Sohaib Salim
- On 08/27/2019
- at 3:58 PM
Abu Dhabi, the capital city of the United Arab Emirates, is poised for revolutionary growth in its real estate landscape.
I have always believed that Abu Dhabi is a ‘sleeping giant’ when it comes to its property sector, and now all market trends point to one direction: A new era of growth that will make the market one of the most competitive for owning and investing in property.
One of the key drivers of this transformational growth is the issuance of the freehold law, which has accelerated demand for property. With the opportunity for foreign nationals and foreign-owned businesses to acquire land on full freehold, there has been tremendous interest from investors across the world – as well as from UAE residents, who are keen to tap the enormous growth opportunity that the Emirate offers.
A key driver of the positive growth of the Emirate is its strong economic fundamentals. In addition to the substantial oil revenues, Abu Dhabi has a fully diversified economy, and has been at the forefront in driving path-breaking initiatives in clean energy and sustainable development.
The Abu Dhabi Economic Vision 2030 is a clear roadmap for growth, which further inspires investor confidence in the strong potential of the economy.
In fact, there has been significant traction in real estate transactions with the Department of Urban Planning and Municipalities stating that over 10,000 deals were conducted in the first half of the year, valued at AED31 billion. Al Reem Island was the most popular investor choice recording total real estate deals valued at AED4.37 billon followed by Al Reef at AED1.78 billion.
The UAE Real Estate Market for Q2 of this year by JLL highlights that the total stock of residences in the Emirate is now at 260,000 units, with another 7,250 units to be delivered by the end of the year within Reel Island and Al Raha Beach.
The report also sites strong demand for residential land plots for the mid-market segment – a key area that will contribute to the positive uptake of the property sector in Abu Dhabi in the coming months.
Abu Dhabi offers credible reasons to invest in property: The city’s central geographic location is matched by effortless connectivity to all key global cities. The infrastructure is world-class and safety and security standards are top-notch. Residents have access to superb leisure attractions such as Yas Island and they have renowned educational institutions and healthcare centres in close proximity.
I strongly believe that while Dubai – as the pioneer in freehold property -will continue to have its strong share of voice and demand, it is important to highlight the value-add that investors can gain from investing in Abu Dhabi. Now, indeed, is the time to look at the potential value Abu Dhabi can generate for investors
This information has been provided by Cecilia Reinaldo CEO at Home Owners Direct HOD