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While Abu Dhabi's real estate market is driven primarily by market fundamentals, the emirate also continues to suffer from a significant supply-demand imbalance fueled by a shortage of quality housing units. Its population continues to soar with the influx of foreigners, many of them highly skilled and well-paid professionals. This has helped residential and commercial property prices maintain an upward trend despite a decline in oil prices.
The current market conditions provide impetus for upscale projects that target both end users and investors, according to Sameh Muhtadi, CEO of Bloom Holding, which specialises in integrated and sustainable communities through its subsidiary Bloom Properties.
''The strong investor interest and transaction volumes seen by our recently launched Faya is a clear indication in this direction,'' says Muhtadi. ''We are committed to leveraging our expertise and extensive understanding of client needs to meet this demand, which we expect to sustain in both short and long terms as the population will continue to outstrip housing supply.''
Faya comprises the fourth phase of Bloom Gardens, an exclusive master-planned community in Abu Dhabi. Muhtadi attributes the success of Faya to its ideal location in a thriving locale at the heart of the capital, and minutes away from the natural sanctuary of the Corniche Al Qurm and Khalifa Park.
Other pluses of the modern town house development include the variety of social amenities and an attractive payment plan. Muhtadi says the developer's track record in delivering quality community developments on schedule has also helped raise the status of its projects.
Faya also offers the same upscale amenities and lifestyle facilities as Bloom Gardens phase one, two and three, including round-the clock security, ample parking space, plus walking, running and play areas.
The project will include a polyclinic, nursery and a community centre, which will include male and female sauna and steam rooms, a multifunction hall, and a mosque with capacity for 200. The centre will also host a health club, gym and swimming pools.
''We sold 90 per cent of Faya within a week since its launch at Abu Dhabi Cityscape,'' says Muhtadi. ''Faya was the key highlight of our participation at the event and we received huge interest from visitors and investors who inquired about the advantages and payment options available to them.
''Faya is an attractive investment opportunity with a payment plan linked to construction milestones and 65 per cent to be paid upon completion. The project is scheduled for completion in the fourth quarter next year.''
Bloom has a diversified project portfolio that spans residential, commercial, education, hospitality, health care and facility management. The developer is leveraging its status as a licenced master developer by the Abu Dhabi Department of Municipal Affairs, under the provision of the new real estate regulatory law that seeks to reinforce the emirate's real estate sector.
Apart from its work on Abu Dhabi island, the developer also has projects in Saadiyat and Dubai Marina.
''We have recently commenced the construction of phase three of Bloom Gardens community that involves the development of 147 housing units, including villas, semi-detached villas and town houses of Mediterranean architectural style,'' says Muhtadi. ''Phase three of Bloom Gardens is set for completion before the end of the year, allowing investors to realise a significant return on investment in a very short period of time.''
Bloom has also started leasing 49 two- and three bedroom residences and 7,000 sq m of premium office space within Bloom Central, a 25-storey mixed-use project in Abu Dhabi city.
Work on other Bloom projects is also progressing quickly. ''The enabling works on Park View, a mixed-use development taking shape in the university neighbourhood of Saadiyat are under way,'' says Muhtadi. ''This project is set for completion and handover by the fourth quarter next year.''
Bloom is the first residential sub-developer in Saadiyat, a fast-emerging cultural, educational and tourist destination. Park View will comprise two buildings – a residential complex and a hotel apartment block. The residential component of Park View will include 230 residential units ranging from studios to two-bedroom apartments. Upon completion, the development will also include 217 furnished and serviced hotel apartments featuring studios and one- and two-bedroom executive apartments.
''As for our projects in Dubai, the enabling works of the Stella Maris project are under way in Dubai Marina and the project is set for completion by the third quarter of 2019,'' says Muhtadi. ''The unique waterfront development comprises 313 apartments, ranging from one- to three-bedders, as well as four-bedroom duplex apartments and penthouses.
The project features expansive retail spaces at the Marina Promenade, a multilevel basement parking facility and a variety of high-end indoor and outdoor amenities that will cater to the needs of even the most discerning customers.
Muhtadi says Bloom is also looking at opportunities in the affordable housing segment. ''Bloom Properties offers clients the right projects at the right locations with highly convenient payment plans,'' he says. ''We are also committed to meeting the demand for affordable units by identifying potential investment opportunities without compromising on quality and exceptional service.''
Muhtadi believes real estate prices will continue to strengthen, particularly in the prime residential sector where Bloom is most active. ''We expect prices to continue to increase throughout the coming period, especially within prime areas and well-designed masterplanned communities,'' he says. ''However, prices for mid-range and lower-quality housing units might come down to more realistic levels to attract new end users.''
He says factors such as a favourable investment climate, economic stability and a supportive regulatory framework further reinforce Abu Dhabi's status as a strong destination for real estate investors.
Source: N.P. Krishna Kumar, Special to Property Weekly