Construction & Real Estate
From The Report: Abu Dhabi 2013
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After a period of rapid growth in 2008 and early 2009, the construction sector has settled into a more moderate pattern in recent years. However, 2012 began on a positive note; in January 2012 the Executive Council announced that it had approved a range of projects, including some that had previously been put on hold, covering housing, health care and education, in addition to major transport infrastructure development. In real estate, a number of commercial and residential projects have come onto the market, bringing prices down to a level more comparable with those in neighbouring Dubai. Abu Dhabi’s retail and industrial segments are also expanding; mall space is expected markedly by 2015, while industrial real estate has much potential for growth thanks to the government’s focus on establishing the emirates as a centre for industrial activities and transport. This chapter includes an interview with Majid Al Mansoori, Chairman, Department of Municipal Affairs (DMA).

Articles from this Chapter

Overview

Swings and roundabouts: With competition among contractors growing, those with viable projects could find this a good time to build
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After a period of rapid growth in 2008 and early 2009, the construction sector has settled into a more moderate pattern in recent years, with contractors primarily wrapping up legacy projects in 2011. However, 2012 began on a positive note, with the government announcing in January that it would resume some previously delayed projects. Nonetheless, with excess capacity in the system, competition for contracts has driven down pricing, providing an opportunity for developers. For viable projects,…

Analysis

Executive decisions: New development projects have been announced in sectors ranging from housing to health care
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After having put several major projects on hold during 2011, the Executive Council announced in January 2012 that it had approved a number of projects across several sectors, including transport, housing, health care and tourism. With commercial real estate development expected to be relatively slow in 2012 as the emirate works to absorb the large amount of residential and office space that came to the market in 2011, these other sectors represent important alternatives for contractors looking…

Analysis

Island living: Communities are being built from scratch as development spreads to new areas
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While Abu Dhabi Island has traditionally been the centre of the capital city – the site of much of the emirate’s commerce, as well as many of its hotels and retail facilities – planning authorities have for some time worked to relocate some of this activity to outlying areas, including several nearby islands. This has created numerous opportunities in the real estate and construction sectors, with entirely new communities being built in previously uninhabited areas. Four of the main islands…

Analysis

Depth charges: Land reclamation and dredging are big business
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An important part of the development of Abu Dhabi has been the land reclamation and dredging works that have occurred along the emirate’s shoreline. This type of work has helped to form the island and coastal developments that are playing an increasingly important role in the local real estate market. But with most of this work having already been completed, dredging and reclamation firms are increasingly turning towards alternative activities, such as developing artificial islands for the…

Interview

Setting standards: OBG talks to Majid Al Mansoori, Chairman, Department of Municipal Affairs (DMA)
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Interview: Majid Al Mansoori How will new building codes affect the sector? MAJID AL MANSOORI: The new codes are a significant step in sustainability and safety for the construction sector because they create a comprehensive set of standards by which all entities in the industry must abide. This will not only create healthy competition within the sector, but should also vastly improve the end products. The lifespan, quality and environmental sustainability of all buildings will increase significantly.…

Overview

Office politics: New stock coming onto the market is driving prices down
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While Abu Dhabi experienced a shortage of office space and residences during the spell of rapid economic growth leading up to 2008, a number of commercial and residential projects have since come onto the market, bringing prices down to a level more comparable with those in neighbouring Dubai. This trend is expected to continue for the remainder of 2012, which will help consumers and businesses looking for office space, but for developers and landlords it will remain a challenging period. However,…

Analysis

Hive of industry: Supply of warehouse space is set to expand with demand in the coming years
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With the development of an industrial base forming an important component in the emirate’s overall economic diversification strategy, the demand for high-quality industrial real estate including warehouse space is expected to rise. While the supply of this type of product has historically been limited in Abu Dhabi, the market has begun to recognise the profit opportunity and supply is expanding accordingly. ECONOMIC ZONES: A key plank of the government’s infrastructure programme has been…

Analysis

Planning for the next generation: Urban growth plans to ensure sustainable development
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The authorities in Abu Dhabi have a long-term vision for the emirate, one that encompasses not only economic diversification but also carefully orchestrated urban growth that is sustainable and reflects the local culture. The Urban Planning Council (UPC), a government agency established by Emiri decree in 2007, plays an important role in this process, preparing overarching blueprints for development that can then be implemented by local authorities. HISTORY: According to its mandate, the UPC…