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Abu Dhabi: Consumer demand for sustainable real estate units in Abu Dhabi is expected to grow over the next 10 to 15 years, according to Anthony Mallows, director at Masdar City.
“We expect demand to be very high because the cost of living will be a higher quality with less cost and time. We are both a free zone and an investment zone. The cost is only a factor of what we’re doing … but we’re more interested in quality developments for all socioeconomic groups, so we’re targeting all price points,” Mallows said.
He was speaking on the sidelines of the eighth edition of Cityscape Abu Dhabi, which is currently being held at the Abu Dhabi National Exhibition Centre (Adnec).
Mallows described the overall demand for real estate in Abu Dhabi as positive, but said it is niche-oriented.
“The expat market is moving away from buying large villas at a high price into buying good apartments at less of a price but very good quality and at a very good location. That’s an example of understanding a niche-market; not just building villas or apartments, [which is why] we believe [Masdar City] is a niche for both residential and offices,” the director said.
As for projections, Mallows said he expected demand for property to increase, but said it will be a “cautious growth.”
He added that initiatives and investments such as the Dubai Expo 2020 will put upward pressure on rents and costs, which will mitigate the strength in the market.
“The economy is coming back and jobs are increasing, but also we’ve seen an influx of real estate investment capital come into the UAE because the risk in low so it is seen as a good place to invest,” Mallows said.
At a total cost of up to $18 billion, Masdar City is designed for a population of 40,000 people who are expected to live there. The 3.7 million-square-metre City will also provide 50,000 jobs. Around 52 per cent of the area will be dedicated to residential properties.
With some of the apartments currently in the design phase, construction is expected to start in the next three to five years.
The development of Masdar City is part of the Abu Dhabi Government’s plan to diversify the economy away from oil and gas, and achieve the Abu Dhabi 2030 Vision.
The City is set to become the world’s most sustainable city, and is expected to represent a green print for how sustainable cities should be built.
Source: Sarah Diaa, Staff Reporter, gulfnews.com