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42973
Thu, 01/29/2009 - 12:50
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https://oananews.org//node/42973
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Property experts: Right opportunity for real-estate investment in Abu Dhabi
Abu Dhabi, Jan 29, 2009 (WAM) - The Abu Dhabi Real Estate and Investment - IREIS 2009 remained in full swing as it went into its second day after attracting a large number of visitors.
Experts and company executives said the show, in which more than a 100 companies are participating, appeared to be a good opportunity for real estate investors to finalize deals and see the latest developments in this fast growing sector.
According to Antoine Georges, Director of Dome Exhibitions, which is organizing the show, the strong presence by major property developers from the UAE and other countries gives a strong push to the event and attracts many people wishing to get acquainted with the latest real estate developments or those who want to invest in this sector.
"The investment atmosphere in this sector is still very encouraging and the strong presence at this show proves that all those concerns are merely psychological factors that have nothing to do with the real economic situation in the country," Georges said.
Developers believe most major speculators have exited the real estate market because of the global financial crisis and that the market is now dominated by medium and long term investors, which will contribute to stabilizing the market and eliminate the state of fear.
Experts said demand for property in Abu Dhabi has remained strong as it exceeded 20,000 units last year while it is expected to peak at 70,000 units in the next three years.
Around 50,000 units are expected to be delivered and this will keep demand very high.
According to Ziad Bushnaq, CEO of Cornerstone Properties, demand for property in Abu Dhabi "has reached its peak", adding that more than 70,000 units would be needed in three years. "Developers should maintain their efforts to support the real estate sector in Abu Dhabi by providing more facilities to both existing buyers and those who intend to buy property as this will ensure confidence in the market," he said.
He said the UAE government has already played a major role in minimizing the impact of the global crisis by injecting massive funds into the banking sector and the economy. "UAE banks have adopted a more cautious lending policy because of the crisis and this has contributed to the sentiment that financing is receding," he said.
Another developer said the real estate sector in Abu Dhabi is still very attractive and competitive for investors despite the global crisis. "The sector is projected to experience good growth rates in the coming years, mainly in the Abu Dhabi emirate, which is enjoying high economic growth rates," said Jamil Kablawi, Marketing and Sales manager at Plus Properties.
He said Abu Dhabi has earmarked massive investments to develop its infrastructure, adding the government appears determined to push ahead with this drive and attract more capital mainly from the private sector. "Such plans will of course have positive effects on the real estate and all other sectors in the emirate," he said.
He said property investment return in Abu Dhabi is still high because of the strong demand and supply bottlenecks in this sector," he added. "The global crisis has a small impact on the market and this should prompt developers to introduce more incentives and facilities for their customers to maintain the momentum in this sector and honour their commitments," According to Dr. Hani Al Shamma, CEO of Bloom Properties, the real estate sector in Abu Dhabi will be free from any fall out of the crisis by the end of this year thanks to the measures undertaken by the government and those concerned with the property sector.
"After the end of the economic boom in the UAE and other Gulf States and the big leap recorded in the real estate and most other sectors, I believe stability will be the dominant factor in the property market this year and next year," he said.
He said IREIS 2009 has special importance as it comes amidst the global crisis and represents a good chance for developers to market their products and support real customers away from speculators who only contribute to instability. "The current prices of property are very tempting and competitive compared with last year's prices and I believe it is a good opportunity for investment." Another real estate expert said there was some exaggeration in property prices two years ago because of the sharp increase in construction costs. "Some developers who have just started to carry out new projects had to refund some of the clients when those costs began to decline as a sign of commitment to customers," said Wael Al-Taweel, CEO of Bani Yas Investment and Development Company.
Meanwhile, the daily seminar at the show entered its second day after discussing the real estate sector in the UAE and the impact of the global financial crisis. Dr. Ali Matar, a property consultant, presented a paper entitled "10 Tips to Buying Property in Abu Dhabi" while other papers were also discussed by the participants.
Exhibitors agreed that the economic situation in the UAE remains strong despite the global financial distress and that the measures taken by the Central Bank and the Federal Government have played a major role in minimizing the effects of the crisis.
They noted that all property developers in Abu Dhabi are pushing ahead with their projects and that no project has been shelved or cancelled. They indicated that this is a sign that the companies are strong and managed to ensure financing for their projects.
Experts affirmed that the real estate sector in Abu Dhabi would continue to grow thanks to the continuous support and measures taken by the government to deal with the crisis.
"Activity is gaining momentum in the market because of signs that the economic situation in the UAE is sound," one expert said. "The market is expected to remain strong and would record good growth rates in the coming period due to the rapid growth in demand".
Experts and company executives said the show, in which more than a 100 companies are participating, appeared to be a good opportunity for real estate investors to finalize deals and see the latest developments in this fast growing sector.
According to Antoine Georges, Director of Dome Exhibitions, which is organizing the show, the strong presence by major property developers from the UAE and other countries gives a strong push to the event and attracts many people wishing to get acquainted with the latest real estate developments or those who want to invest in this sector.
"The investment atmosphere in this sector is still very encouraging and the strong presence at this show proves that all those concerns are merely psychological factors that have nothing to do with the real economic situation in the country," Georges said.
Developers believe most major speculators have exited the real estate market because of the global financial crisis and that the market is now dominated by medium and long term investors, which will contribute to stabilizing the market and eliminate the state of fear.
Experts said demand for property in Abu Dhabi has remained strong as it exceeded 20,000 units last year while it is expected to peak at 70,000 units in the next three years.
Around 50,000 units are expected to be delivered and this will keep demand very high.
According to Ziad Bushnaq, CEO of Cornerstone Properties, demand for property in Abu Dhabi "has reached its peak", adding that more than 70,000 units would be needed in three years. "Developers should maintain their efforts to support the real estate sector in Abu Dhabi by providing more facilities to both existing buyers and those who intend to buy property as this will ensure confidence in the market," he said.
He said the UAE government has already played a major role in minimizing the impact of the global crisis by injecting massive funds into the banking sector and the economy. "UAE banks have adopted a more cautious lending policy because of the crisis and this has contributed to the sentiment that financing is receding," he said.
Another developer said the real estate sector in Abu Dhabi is still very attractive and competitive for investors despite the global crisis. "The sector is projected to experience good growth rates in the coming years, mainly in the Abu Dhabi emirate, which is enjoying high economic growth rates," said Jamil Kablawi, Marketing and Sales manager at Plus Properties.
He said Abu Dhabi has earmarked massive investments to develop its infrastructure, adding the government appears determined to push ahead with this drive and attract more capital mainly from the private sector. "Such plans will of course have positive effects on the real estate and all other sectors in the emirate," he said.
He said property investment return in Abu Dhabi is still high because of the strong demand and supply bottlenecks in this sector," he added. "The global crisis has a small impact on the market and this should prompt developers to introduce more incentives and facilities for their customers to maintain the momentum in this sector and honour their commitments," According to Dr. Hani Al Shamma, CEO of Bloom Properties, the real estate sector in Abu Dhabi will be free from any fall out of the crisis by the end of this year thanks to the measures undertaken by the government and those concerned with the property sector.
"After the end of the economic boom in the UAE and other Gulf States and the big leap recorded in the real estate and most other sectors, I believe stability will be the dominant factor in the property market this year and next year," he said.
He said IREIS 2009 has special importance as it comes amidst the global crisis and represents a good chance for developers to market their products and support real customers away from speculators who only contribute to instability. "The current prices of property are very tempting and competitive compared with last year's prices and I believe it is a good opportunity for investment." Another real estate expert said there was some exaggeration in property prices two years ago because of the sharp increase in construction costs. "Some developers who have just started to carry out new projects had to refund some of the clients when those costs began to decline as a sign of commitment to customers," said Wael Al-Taweel, CEO of Bani Yas Investment and Development Company.
Meanwhile, the daily seminar at the show entered its second day after discussing the real estate sector in the UAE and the impact of the global financial crisis. Dr. Ali Matar, a property consultant, presented a paper entitled "10 Tips to Buying Property in Abu Dhabi" while other papers were also discussed by the participants.
Exhibitors agreed that the economic situation in the UAE remains strong despite the global financial distress and that the measures taken by the Central Bank and the Federal Government have played a major role in minimizing the effects of the crisis.
They noted that all property developers in Abu Dhabi are pushing ahead with their projects and that no project has been shelved or cancelled. They indicated that this is a sign that the companies are strong and managed to ensure financing for their projects.
Experts affirmed that the real estate sector in Abu Dhabi would continue to grow thanks to the continuous support and measures taken by the government to deal with the crisis.
"Activity is gaining momentum in the market because of signs that the economic situation in the UAE is sound," one expert said. "The market is expected to remain strong and would record good growth rates in the coming period due to the rapid growth in demand".
