ABU DHABI
Aldar Properties plans to target the mid-income sector with new projects on the back of rising demand in Abu Dhabi.
The company announced a 600-unit mid-market residential project last month in Al Reem Island, and is set to announce another project during Abu Dhabi Cityscape, which kicks off next week.
Meera, the company’s first project targeting the mid-income segment (salary range of Dh10,000 to Dh25,000) is more than 90 per cent sold, Talal Al Dhiyebi, Chief Development Officer of Aldar Properties, told Gulf News in an interview.
“There is strong demand for mid-market housing. For example, 90 per cent of our Meera project is already sold. People are looking for affordable housing with good facilities and we are strong in that aspect.”
Meera in Al Reem Island has one-bedroom, two-bedroom and three-bedroom apartments with prices starting from Dh915,000, Dh1.35 million and Dh1.65 million respectively.
Western and Arab expatriates have bought majority of flats in Meera, according to Al Dhiyebi.
The company will be launching a significant development in Al Reem Island next week “and it’s going to be mid-market and will be very affordable”, he added without disclosing further details.
Speaking about Abu Dhabi’s property sector, Al Dhiyebi said there has been an impact due to people losing jobs but sees improvement as the government spends heavily on new projects, and companies set up their businesses in Abu Dhabi’s new financial market — the Abu Dhabi Global Market.
“Projects worth $37 billion are in the pipeline in Abu Dhabi including a new airport, nuclear power plant and other infrastructure related projects. There are also new companies being set up at the capital’s newest financial centre in ADGM, which will give a boost to mid-market housing, especially in Al Reem Island,” he said.
When asked about the financing of the new projects, he said it is “not a major concern” as they have enough cash and low debt to finance future projects.
“We have under Dh6 billion of debt and we have significant amount of cash. Our business is significantly funded for the next four to five years and we have no problems in this aspect.
“Our asset management business last year generated Dh1.6 billion of net operating income which provides significant cash flow in addition to the cash generated from the sale of housing units.”
The company posted a net profit of Dh2.8 billion in 2016, up 8 per cent on the previous year.
“We remain confident of performing well this year. We are continuing to invest and there is opportunity in the market,” Al Dhiyebi said.
Aldar last month announced planned investments in mid-market residential, hospitality & leisure, and retail assets on Yas Island and Reem Island, amounting to a total of Dh1.9 billion.
