Real Estate & Construction
From The Report: Abu Dhabi 2020
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Investment in energy and infrastructure has resulted in the development of various mega-project opportunities for construction and engineering companies in Abu Dhabi. These include strategic projects such as the Midfield Terminal Building at Abu Dhabi International Airport and the Barakah Nuclear Power Plant, both of which are due to become operational in 2020. Real estate, meanwhile, has remained a buyers’ or renters’ market as the delivery of new retail, office and residential properties coincide with a softening of demand. This could change, however, as the government amends laws to allow foreigners to own freehold property in designated investment zones. Looking ahead, while the construction pipeline remains robust in the medium and long term, the broader economic slowdown related to the Covid-19 pandemic in early 2020 may impact the pace of projects in the near term. This chapter contains interviews with Talal Al Dhiyebi, CEO, Aldar Properties; and Saleh Al Mazrouie, Acting CEO, Abu Dhabi General Services Company (Musanada).

Articles from this Chapter

Overview

Tapping new markets: Major energy and infrastructure projects fuel building activity
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Investment in energy and infrastructure has resulted in the development of various mega-project opportunities for construction and engineering companies in Abu Dhabi. These include strategic projects such as the Midfield Terminal Building at Abu Dhabi International Airport (AUH) and the Barakah Nuclear Power Plant, both of which are due to become operational in 2020. Real estate, meanwhile, has remained a buyers’ or renters’ market as the delivery of new retail, office and residential…

Interview

Sustainable vision: Talal Al Dhiyebi, CEO, Aldar Properties, on how increased interest in sustainability is changing market dynamics
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Interview:Talal Al Dhiyebi How are flexible payment plans helping boost the number of first-time buyers? TALAL AL DHIYEBI: Payment plans are one of the most effective ways to attract buyers, as they can make home ownership more affordable. By spreading out the cost of buying property over a number of years, a greater number of potential buyers has increased access to the market. For developers, it is about providing the right types of products that will capture the imagination of purchasers,…

Analysis

Expat oasis: Freehold regulations expand ownership options for expatriates
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In recent years Abu Dhabi introduced a number of legal changes designed to make the real estate market more attractive for expatriates. It is hoped that, in turn, a more established foreign population will increase foreign direct investment and boost the economy further. In April 2019 Sheikh Khalifa bin Zayed Al Nahyan, president of the UAE and ruler of Abu Dhabi, issued an amendment to the emirate’s 2005 real estate law allowing foreign nationals of countries outside the GCC to purchase…

Analysis

Key to success: Affordable housing projects, lifestyle developments and sales to foreigners boost home ownership rates
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At a time of downward pressure on sale and rental prices for residential flats and villas, potential buyers and tenants have an opportunity to explore new housing options. According to Statistics Centre - Abu Dhabi, housing costs including utilities fell by 3.7% in 2019. This came as the real estate sector contracted by 1.1% in current prices in 2019, compared to a contraction of 17.4% in 2018. Despite lagging expansion, the year 2019 recorded 8663 mortgage transactions worth Dh37.4bn ($10.2bn)…

Analysis

Done deal: Innovative financing brings more people into the market
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Faced with challenging conditions in the real estate market, some property developers in the UAE have devised a number of incentives in order to attract buyers. Some are offering loan-repayment schemes to new buyers to facilitate purchases, such as rentto-buy options that enable people to make smaller down payments. Rent-to-buy schemes have a legal basis in Islamic finance jurisprudence and are regarded as a form of ijara (leasing). The government is also stepping in with financing solutions,…

Interview

Linking stakeholders: Saleh Al Mazrouie, Acting CEO, Abu Dhabi General Services Company (Musanada), on activity and productivity levels
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Interview: Saleh Al Mazrouie Which sectors do you believe will create greater construction activity in the short to medium term? SALEH AL MAZROUIE: In recent years most investment and construction activity has been in the housing, health and education sectors. For example, a recent project constructed 5000 residences to provide affordable housing for Emiratis who meet the criteria. Furthermore, eight schools have been built across the emirate, and 21 more are being planned for construction. In…