Aldar launches Dh1.7bn residential development for Emiratis
Alreeman II follows the success of its first phase launched in January, which generated sales of Dh1.6bn
Aldar Properties, Abu Dhabi’s biggest listed developer, launched a Dh1.7 billion residential project. It is the developer’s third this year, featuring plot sales to tap demand for land in the capital’s property market.
Alreeman II in Al Shamkha will be available for purchase to Emiratis only. The project follows the success of Alreeman, launched in January, which generated Dh1.6bn in sales.
Aldar is offering about 1,700 plots to investors in Alreeman II, ranging from 500 square metres to 1,000 square metres. The developer will begin selling the plots in the third week of June. Prices range from Dh690,000 to Dh1.2 million.
Aldar expects sales to equal the Dh1.7bn gross development cost of the project, said Rashed Al Omaira, director of sales and development.
“We continue to be very optimistic about Abu Dhabi’s property market. We are continuously assessing what we need to release ... there is certainly pent up demand for plots of land,” Maan Al Awlaqi, Aldar’s executive director of commercial said on Wednesday.
Construction on the project will commence at the end of this year, with the first handovers beginning from the end of 2021, he said.
The UAE property market slowed in the wake of the 2014 drop in oil prices, with tenants and buyers seeking more affordable options. The fall in residential sales and rental prices has slowed this year and some analysts predict a market recovery as the down cycle ends soon. Government initiatives such as a Dh50bn three-year economic stimulus package and the long-term visa system, offering residency of up to 10 years to specialists in technical fields, are expected to contribute to the recovery of the real estate market.
In April, the Abu Dhabi government also made changes to related laws allowing foreigners to own freehold property in designated zones. Foreign investors in Abu Dhabi’s real estate market were previously granted leasehold for a maximum time period of 99 years.
The change in the legislation is a boon to the real estate market, Mr Al Awlaqi said. It will increase appetite among foreign investors for property in Abu Dhabi, he added.
With 90 per cent of Aldar’s land bank in designated freehold zones, the developer is likely to offer more opportunities to investors. Those who bought properties on leasehold basis previously can change their ownership to freehold titles where applicable, Mr Al Awlaqi added.
Updated: June 12, 2019 05:13 PM