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Aldar Properties, an Abu Dhabi-based developer, announced on Wednesday that it has generated Dh1.9 billion in sales during the first half of the year for land plots on Nareel Island, Al Merief, and unit sales at Meera at Shams Abu Dhabi.
In Nareel Island alone, Aldar sold 70 land plots worth Dh1 billion to Emiratis.
The developer also completed the sale of all 281 land plots that generated Dh600 million in revenues at Al Merief, a residential community for Emiratis.
“We continue to see demand in Abu Dhabi for infrastructure enabled land and high quality residential communities, and will continue to launch projects that meet this demand and support the growth of the emirate,” said Mohammad Al Mubarak, chief executive officer of Aldar in a statement.
In Meera Shams Abu Dhabi, a residential development on Reem Island, Aldar sold 150 units worth a total of Dh220 million. The development features two towers with one, two, and three-bedroom apartments. Aldar is currently underway with Phase two of Meera sales.
Mathew Green, head of research at CBRE, a commercial real estate advisor, said that the lack of supply was one of the main factors driving demand.
“From a developer point of view, you probably have developers looking at the market, thinking that there really isn’t much residential supply coming up over the next three to four years, so that’s an opportunity for them. Over the next few years, there’s only about 34,000 units coming up, so that’s about 8,000 units per year, and historically, or if you look at Dubai, that figure isn’t that high,” he said.
Asked about the impact of factors such as oil prices on the sales market, Green said it was mostly related to investor sentiment.
“People tend to look at the wider economy, and with a market like Abu Dhabi that is backed by oil and gas, people look at the key fundamentals that drive the market, and obviously, oil prices are key, particularly in government spending, and new jobs, so it all ties in together,” Green said.
Meanwhile, Harmen De Jong, partner at Knight Frank, a real estate agency, said that there was growing demand for land plots especially from Emirati investors who prefer to build their own home rather than buy units.
On Wednesday, Aldar’s shares were the mostly actively traded in terms of value on the Abu Dhabi Securities Exchange (ADX), with share prices ending the day at Dh2.71.
Source: Sarah Diaa, Staff Reporter, gulfnews.com