Abu Dhabi developers focus on project completions
Developers in the emirate will continue with the completion and handover projects in 2011.
October 19, 2010 1:33 by Reuters
Abu Dhabi’s property market is set for another year of consolidation in 2011 and the supply of high-end homes over the next 15 months will do little to address a shortage in mid-income housing, an executive said on Tuesday.
Developers in the emirate will continue with the completion and handover projects next year while some 8,000 higher-end homes are set to hit the market by end-2011, Gurjit Singh, chief operating officer at Sorouh Real Estate, told the Reuters Middle East Investment Summit in Dubai.
“The undersupply that is focused on in Abu Dhabi… is predominantly middle income and therefore is a gap that needs to be filled,” he said, adding that Abu Dhabi’s government was encouraging more middle income rental housing projects.
Abu Dhabi’s second largest developer Sorouh is one of several developers in the emirate that have been focusing more on developing government-backed housing projects aimed at Emirati families.
“The government has been involved in the provision of soft infrastructure such as the provision of Emirati housing and this should continue because there is a under fulfillment of such type of housing,” Singh added.
Developers across the United Arab Emirates have suffered from the global financial crisis which put an end to a six-year boom. While Dubai has suffered most, Abu Dhabi, home to most of the country’s oil, has fared better.
Sorouh’s shares were up 0.6 percent at 1.8 dirhams a share at 0836 GMT, underperforming Abu Dhabi’s bourse which rose 1.1 percent.
(Reporting by Jason Benham, Reed Stevenson, Shaheen Pasha, Rachna Uppal and Dinesh Nair; Editing by Mike Nesbit)