Firm offers more home financing in Abu Dhabi

Abu Dhabi: Mortgage financing company Abu Dhabi Finance will be positioned in a year's time to offer finance for about 90 per cent of the residential units being built in Abu Dhabi and available for sale, its chief executive Phillip Ward said on Tuesday.

"We are currently financing about 70 per cent of the new units being built in Abu Dhabi by six developers — Aldar, Sorouh, TDIC, Capitala, Profile Group and Green Emirates," Ward told reporters on the sidelines of an industry conference.

"We are going to add two, possibly three new developers to our portfolio by the end of this year," he added.

Citing industry estimates, Ward said that by 2015, the gap between demand and supply of residential units in Abu Dhabi could grow to 100,000 units from around 50,000 units at present.

Ward said the prices of residential units in Abu Dhabi have stabilised and in some instances are beginning to nudge back up, after the global financial crisis.

Abu Dhabi Finance began operations with Dh500 million in paid up capital, 11 months ago.

Separately, John D. Davis, chief executive of Colliers International said at the conference Abu Dhabi's high office rents are likely to fall due to new supply coming on stream next year.

Regarding Dubai, he said the rents and prices of residential units will continue to drop in the short term, mainly due to oversupply.

"We are getting close to the bottom, though," said Davis.