Abu Dhabi to get 32,000 new homes this year

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Abu Dhabi housingAbu Dhabi will receive at least 32,000 new housing units in 2014, as the emirate plans to unveil new real estate legislations in coming months, government officials have revealed according to an Emarat Al Youm report.

“The new units will raise the number of housing units in the emirate to 280,000 units by next year,” Falah Al Ahbabi, Director General of the Abu Dhabi Urban Planning Council (UPC) said.

A study conducted by UPC, which is showcasing the master plan for Abu Dhabi at Cityscape Abu Dhabi, found the number of residential units in the emirate to increase by 13 per cent this year compared to 2013.

Speaking to reporters, Saeed Eid Al Ghafli, Chairman of the Department of Municipal Affairs, said that the municipality has prepared an integrated system of real estate laws and regulations, which were currently being adopted by the Executive Council and were expected to be issued in the coming months. Some of the laws refer to jointly owned property, real estate brokers and mortgages.

Al Ghafli said these laws will contribute to strengthening the competitiveness of the real estate sector and attract more investment and maintain sustained growth.

But in a new report, JLL, a global real estate consultancy, said the removal of the rent cap and only 8,000 new housing units supply in investment zones this year will have a “major” impact on rents.

“The recent removal of the rent cap will have a major impact on rents this year. We welcome the introduction of a new, well-considered, rental control mechanism to maintain the right balance between keeping Abu Dhabi cost competitive while allowing landlords to achieve fair rents,” the consultancy said in its first quarter 2014 report on Abu Dhabi.

Abu Dhabi’s rent cap was removed during the fourth quarter 2013. Residents have reported on arbitrary rent hikes in the emirate with landlords increasing rent of existing tenants.

However, it is expected that a new property rental index will be launched later this year, dividing the Abu Dhabi city into 10 to 12 zones based on different rental levels. The aim of the index is to help establish rents that are fair to tenants and settle disputes between landlords and tenants.

Average asking rents for prime two bedroom apartments increased by approximately four per cent to Dh145,000 per annum. This represents a rise of 11.5 per cent over the year in the first quarter of 2014.

Demand remains strong due to a variety of factors including: new job growth from government spending initiatives (principally new major infrastructure and construction projects) and growth of state-owned enterprises; policy moves to reduce the level of government employees commuting from Dubai and reduced rental differential between Abu Dhabi and Dubai as rents in prime areas of Dubai continue to increase.

Earlier this month, CBRE said in its first quarter report on Abu Dhabi property market that landlord imposed arbitrary rent hikes was driving tenants to relocate within Abu Dhabi with budget focused tenants preferring to move to off-island locations.

“With affordability fast becoming a concern for many residents, there has been a steady rise in demand for more affordable housing options, with off-island locations such as Khalifa City A and Mohammed Bin Zayed City becoming popular choices for the more budget focused tenants,” the consultancy said, adding that the number of residential units in Abu Dhabi increased by 1,700 units in the first quarter, bringing the total stock to around 238,000. The majority of these units are within the Gate Tower 2 and the Reem Diamond Building on Reem Island.

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Reading Time: 3 minutes

Abu Dhabi will receive at least 32,000 new housing units in 2014, as the emirate plans to unveil new real estate legislations in coming months, government officials have revealed according to an Emarat Al Youm report.

Reading Time: 3 minutes

Abu Dhabi housingAbu Dhabi will receive at least 32,000 new housing units in 2014, as the emirate plans to unveil new real estate legislations in coming months, government officials have revealed according to an Emarat Al Youm report.

“The new units will raise the number of housing units in the emirate to 280,000 units by next year,” Falah Al Ahbabi, Director General of the Abu Dhabi Urban Planning Council (UPC) said.

A study conducted by UPC, which is showcasing the master plan for Abu Dhabi at Cityscape Abu Dhabi, found the number of residential units in the emirate to increase by 13 per cent this year compared to 2013.

Speaking to reporters, Saeed Eid Al Ghafli, Chairman of the Department of Municipal Affairs, said that the municipality has prepared an integrated system of real estate laws and regulations, which were currently being adopted by the Executive Council and were expected to be issued in the coming months. Some of the laws refer to jointly owned property, real estate brokers and mortgages.

Al Ghafli said these laws will contribute to strengthening the competitiveness of the real estate sector and attract more investment and maintain sustained growth.

But in a new report, JLL, a global real estate consultancy, said the removal of the rent cap and only 8,000 new housing units supply in investment zones this year will have a “major” impact on rents.

“The recent removal of the rent cap will have a major impact on rents this year. We welcome the introduction of a new, well-considered, rental control mechanism to maintain the right balance between keeping Abu Dhabi cost competitive while allowing landlords to achieve fair rents,” the consultancy said in its first quarter 2014 report on Abu Dhabi.

Abu Dhabi’s rent cap was removed during the fourth quarter 2013. Residents have reported on arbitrary rent hikes in the emirate with landlords increasing rent of existing tenants.

However, it is expected that a new property rental index will be launched later this year, dividing the Abu Dhabi city into 10 to 12 zones based on different rental levels. The aim of the index is to help establish rents that are fair to tenants and settle disputes between landlords and tenants.

Average asking rents for prime two bedroom apartments increased by approximately four per cent to Dh145,000 per annum. This represents a rise of 11.5 per cent over the year in the first quarter of 2014.

Demand remains strong due to a variety of factors including: new job growth from government spending initiatives (principally new major infrastructure and construction projects) and growth of state-owned enterprises; policy moves to reduce the level of government employees commuting from Dubai and reduced rental differential between Abu Dhabi and Dubai as rents in prime areas of Dubai continue to increase.

Earlier this month, CBRE said in its first quarter report on Abu Dhabi property market that landlord imposed arbitrary rent hikes was driving tenants to relocate within Abu Dhabi with budget focused tenants preferring to move to off-island locations.

“With affordability fast becoming a concern for many residents, there has been a steady rise in demand for more affordable housing options, with off-island locations such as Khalifa City A and Mohammed Bin Zayed City becoming popular choices for the more budget focused tenants,” the consultancy said, adding that the number of residential units in Abu Dhabi increased by 1,700 units in the first quarter, bringing the total stock to around 238,000. The majority of these units are within the Gate Tower 2 and the Reem Diamond Building on Reem Island.

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