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Current data demonstrates a rising
occupancy rate in newly completed
projects, following the hand-over of
more than 10,000 residential units on
Reem Island, by various developers.
Demand on high quality residential
units is soaring, particularly on
Reem Island, as the island has
rapidly become one of the most
attractive addresses for residents
in Abu Dhabi, due to its strategic
location near the centre of the city.
The appeal of real estate projects is
increasing due to real demand on
residential units, as a large number
of residents in the downtown area
of the capital city have relocated
to the new residential communities
– Reem Island in particular.
Upon completion, Reem Island will
accommodate more than 200,000
residents. The island includes schools,
hospitals, universities, parks and
beaches. Extending over an area of 6.5
million square feet, the island is only
300 meters away from the shoreline of
Abu Dhabi City. Reem Island is one of
the first freehold projects in Abu Dhabi,
enabling foreign investors to own units
on a long-term lease basis (extendable
99-year
leasehold
contracts).
Al Mazaya’s Report stresses that
investment in residential properties in
Abu Dhabi is one of the best investment
options, as this sector is seeing
growing demand and rising returns,
with the demand-supply imbalance
still manifest in the emirate’s market.
More residential units are needed to
meet the demand from middle-income
groups while the luxury apartments are
oversupplied and seeing less demand.
Commercial unitsarealsooversupplied
and seeing a decline in demand.
New
residential
and
commercial
projects are currently centred in and
around Saadiyat Island, Reem Island,
the Corniche and Al Raha Beach. These
projects include residential units that
target UAE citizens, such as Khalifa City
A, Mohammed bin Zayed City, Bani Yas
and along the emirate’s North coast.
These, among many more projects, are
part of the Abu Dhabi 2030 Master Plan.
Thereportpointsout thatsitesaroundAbu
Dhabi Island have been experiencing high
demand for some time, despite the high
prices and lack of services. Reem Island,
an island near the centre ofAbuDhabi City,
is one such example and has been seeing
increasing demand from tenants, for the
past two years, despite the high rents.
It is also worth mentioning that the
completed and underway projects on
Reem Island serve the needs of all clients
who prefer excellent living standards and
a full range of services and amenities.
This was an additional pressure on
the demand for real estate products
on the island, particularly from foreign
clients. Leasing activity is continuing to
rise at these new residential projects,
especially the high-quality units with
sea views and amenities. This reflects
the continued demand for luxury
residential units in the UAE’s capital city.
Mazaya Monthly Real Estate Report -
Week 4 - December 2015