Abu Dhabi
Aldar Properties chairman brushed aside weakness in Abu Dhabi’s real estate sector asserting that demand is strong and the company will focus on low and mid income developments.
Speaking to reporters at the launch of the new mid-market project, Dh1.3 billion The Bridges, Abu Baker Seddiq Al Khouri said the economy is fundamentally strong and new jobs are being created due to government spending.
“We see huge demand for mid-income and low income projects that has always been part of our strategy. We are targeting families, individuals with salaries ranging from Dh20,000 to Dh30,000 per month.”
The chairman also said demand will be driven because Abu Dhabi’s mid income population is between 40 to 60 per cent of the capital’s total population and the percentage of those owning properties is very low.
He added that Aldar’s first mid income project called Meera on Abu Dhabi’s Reem Island was sold more than 90 per cent. “We fundamentally believe in the long term strategy. We are not short term but long term players.”
Last year, the company’s sales were Dh3.5 billion but sales this year are likely to be lower, Aldar said, after announcing financial results for 2016 earlier this year.
Asked whether redundancies are affecting the housing market, Al Khouri said there is restructuring going on in certain government companies but at the same time new jobs are being created based on the new developments undertaken by the government. “They are good numbers which add to the mosaic picture of the economy.”
Despite instability in the region, countries like the UAE benefit a lot in attracting foreign investment, in attracting talent and in attracting families to come and reside, he said.
“If you look at the economy today, the contribution of oil directly to the GDP is much less than before.”
Aldar will release one tower for sale from The Bridges project at Cityscape Abu Dhabi, which begins on Tuesday at the Abu Dhabi National Exhibition Centre.
Prices will start from Dh450,000 for a studio, Dh730,000 for one bedroom, Dh1 million for two bedroom and Dh1.5 million for a three bedroom flat.
