Abu Dhabi property projects run into billions

Mega projects comprising of townships or mini cities, with investment outlays ranging from $7 billion to $15 billion, are underway within Abu Dhabi.

“The Abu Dhabi construction market is proving to be as dynamic as the Dubai market, and the growth will remain robust for at least the next five years” says Dr Falah Mustafa, CEO, Bayt Al Kidma Properties, the company responsible for services and infrastructure on Abu Dhabi’s new islands. “The trigger was the property law allowing nationals and expatriates ownership, but oil revenues are also pouring into the construction sector. Just look at the number of projects launched and look at what is going to come,” says the industry veteran, earlier with Abu Dhabi's Public Works Department.

He adds: “Property developers are mushrooming and they are coming from Dubai and outside. Even banks are setting up their own property or real estate subsidiaries.” Indeed, new property developers are launching themselves like never before. In the last few months, at least six new companies have been established and industry insiders say more are in the pipeline.

Aldar Properties, Sorouh Real Estate and Al Reem are the big players involved in mega projects after securing land from the government. Aldar has an impressive portfolio led by the $14.71 billion Al Raha Beach Development, the Al Gurm Resort and some others. Sorouh's $2.72 billion ‘The Gate’ (part of Sorouh's $9.54 billion Shams Abu Dhabi project) which includes Abu Dhabi’s highest tower (379 metres) is underway on Reem Island. Reem Investments has launched Najmat Abu Dhabi, residential and commercial projects valued at $8.17 billion on Abu Dhabi's Al Reem Island.

Similarly, Profile Group of Properties has unveiled a $545 million project called Pearl of the Emirates on Reem Island and even begun sales like the other developers. Even Abu Dhabi Investment Company (ADIC), the investment arm of the Abu Dhabi government, joined the bandwagon announcing plans to build a $10.9 billion city between the capital and Dubai to be followed with the launch of a $136.24 million real estate fund. Newly established companies have announced medium to large construction projects.

Looks like Abu Dhabi is getting geared to take over Dubai as the premier Middle East property investment destination. Investors, watch out.

Like what you read? Digg it. Tag it. Share it.