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Real estate developer Aldar Properties, has seen a strong wave of demand for long-term, bulk lease deals from corporate clients, with 2,120 units signed for lease for a period ranging from two to 30 years.
In a statement released on Tuesday, Aldar confirmed that local and international companies have signed bulk leases at Al Rayyana, The Gates Towers, The Arc, Sun and Sky Towers, and Al Murjan Tower over the last year. These include key government entities from the education, defence, and health care sectors.
Most of the lease agreements comprise over 100 units, with the largest reaching over 600 units.
Mathew Green, head of research at CBRE, a global commercial real estate adviser, attributed the high demand to Aldar's already-established reputation of delivering high quality units.
''Over the past 12 months, we have been seeing rental growth. It is very much focused on specific areas like Aldar developments, which are kind of community-focused. What you are seeing is the older residential product suffering and not being able to command the same level of rent as it had done previously, so there's a new tier market,'' Green told Gulf News.
He added that the outlook for the real estate market in Abu Dhabi is positive with expectations to see new property developments.
''I think we are likely to see more of Aldar developments in the coming months. We know they are looking into launching new developments. Overall, we see an improvement picture in Abu Dhabi. We had the removal of the rent cap by the end of last year, and that had quite a knock-on effect in terms of where rental rates have been going, although we're starting to see that become [steadier],'' Green said.
According to Aldar, corporate clients are looking for contemporary, well-located, and safe developments that include amenities for their employees.
Talal Al Dhiyebi, executive director of asset management at Aldar Properties, commented on the demand saying, ''All of our bulk leases have been won against a competitive backdrop, demonstrating the strength of the product offering. Our team is now looking at further strengthening its relationships through build-to-suit solutions that accommodate medium and long term requirements.''
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Source: Sarah Diaa, Staff Reporter, gulfnews.com