The Abu Dhabi real estate
market has been experiencing unprecedented growth
over the past two years and is poised for a coming
decade of growth and development that has never
been seen before in the emirate forecasted RSP
Group, the largest regionally-based real estate
and hospitality investment advisory organization
in the Middle East.
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Speaking
at the International Real Estate and Investment
Show in Abu Dhabi today, RSP Group Managing
Partner Blair Hagkull projected that 250,000
new housing units will be required in Abu
Dhabi over the next decade to meet projected
demands. The Group also identified a series
of key real estate trends that have contributed
to the buoyant market environment in Abu Dhabi.
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'Over
the past year RSP Group have worked in more
than 20 Middle East and North African countries
on real estate projects worth more than US
$ 80 billion' said Hagkull. 'This has included
more than US$25 billion in the Abu Dhabi emirate
alone, which has contributed to Abu Dhabi's
designation as one of the leading real estate
markets in the entire Middle East, recognition
that has typically only been granted to Dubai
and Doha'
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'The
new generation of leadership in Abu Dhabi
has recognized the important role that real
estate development and investment plays in
a maturing economy' said Hagkull. 'Now that
the new real estate law has been announced
local, regional and international real estate
developers and investors recognize the huge
potential in Abu Dhabi, not only in Abu Dhabi
city but throughout the emirate.'
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RSP
Group's 'MarketWatch' research shows that
the population of the city of Abu Dhabi doubling
in the next 10 years from approximately one
million residents to over two million people.
'There continues to be a shortage in all types
of residential development with occupancies
above 90% in all asset classes' said Hagkull.
'This has contributed to an increase in residential
rental rates between 20 and 40% over the past
two years.'
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The
hotel and tourism sector is also an important
demand driver said Hagkull. 'The Abu Dhabi
Tourism Authority is playing an integral role
in encouraging major new private investment
in the tourism sector. Not only is hotel occupancy
on a 70-80% occupancy on an annual basis,
the Average Daily Rate (ADR) has increased
almost 30% in the past two years.'
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In
his presentation at the Abu Dhabi Exhibition
Centre, Hagkull identified a series of key
demand drivers that contribute to the growth
of the real estate market. In addition to
population growth, he discussed the importance
of overall economic development, the planned
free zones, industrial development projects
including the proposed new port project at
Taweelah as well as leasehold options for
expatriates contributing to the positive investment
climate.
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Acknowledging
that the freehold and leasehold projects are new
in the emirate, Hagkull identified that leading
private Abu Dhabi based real estate investors
already have significant experience in real estate
development. 'Many Abu Dhabi-based developers
have been amongst the first investors and builders
of freehold real estate in Dubai, including prime
locations like Emaar's Dubai Marina and Nakheel's
Jumeirah Beach Residence. They know the real estate
scene as well as their neighbors in the Dubai
and Doha.
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Hagkull
also identified leading Abu Dhabi based developers
like Aldar, Surouh, Al Qudra, Reem Properties,
Al Rayan and others as having significant real
estate experience and recognize the importance
of global best practice in real estate development.
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While
much of the real estate development activity in
Abu Dhabi has been focused around Abu Dhabi island,
with projects like Reem Island, Al Raha Beach,
Saadiyat and Lulu Islands attracting significant
interest, Hagkull also identified other key areas
in the emirate poised for heightened real estate
activity. 'We see key areas like Al Ain, Ghantoot
and the area near the Dubai border as logical
areas for future growth.'
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RSP Group is the largest,
regionally-based real estate investment advisory
organization in the Middle East. Over the past
year RSP Group has worked in 20 Middle East -
North African countries on real estate and hospitality
developments in excess of US $80 billion.
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RSP
Group's core advisory services include Development
Advisory, Project Financing, Asset Management
and Fund Development and Asset Acquisitions and
Disposals. RSP Group has provided strategic advisory
services on many of the region's largest and most
prestigious real estate and hospitality developments.
Its 'blue chip' client base is comprised of many
of the leading international and regional banks,
real estate developers, and investors throughout
the Middle East.
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