60% of Reem Island should be allocated for commercial use to satisfy future demand says local expert
This is the best time for buying properties in Abu Dhabi says MD Real Estate (MDRE), an Abu Dhabi based real estate company specialising in commercial and residential sales and acquisitions in the UAE capital’s real estate market.
Whilst some may be skeptical about whether or not Abu Dhabi can sustain its current development pace, MDRE remain confident that it can. Demand still outstrips supply, the Emirate itself is not dependent on international funding and city planning strategies will ensure that the physical development of Abu Dhabi responds in a sustainable manner to the city’s current and future needs.
Amanda Clarke, Director of Marketing and Business Development, MDRE adds: "For people who don’t have the time or the understanding about how the real estate market works out here we believe a global financial crisis actually offers exciting potential for investors in the local real estate market.”
Clarke added: "We see current market conditions offering a fantastic investment opportunity, especially in the longer term. There are an increasing number of properties available at below market value and just look at rental yields - globally New York at 4.5%, London and Shanghai 5% compared to between 13 - 17% in Abu Dhabi.
Abu Dhabi is also well known for being one of the world’s richest cities and is currently recognized as having the largest Sovereign Wealth Fund. This simply means Abu Dhabi has little or no international debt and in turn is still enjoying economic growth and stability, unique in a challenged global economy."
“Although not immune to a global financial liquidity crisis, Abu Dhabi has not suffered the impact of the recession as much as other regional markets in the past few months. Of course there has been a slight slow down in demand but whilst government backed developers continue to secure funding for their schemes, we do not anticipate any real long term contraction in Abu Dhabi.”
Clarke adds: "MDRE only works in partnership with reputable Abu Dhabi based developers, which translates into quality properties at competitive prices. We also appreciate the demand for a comprehensive approach to property sales and acquisition and therefore offer advice on a wide range of financial packaging."
As Abu Dhabi market specialists MDRE is able to offer investment advice on residential and commercial developments. The current hot spots for investment include both Reem Island and Al Raha Beach, which both remain hugely popular with their clients.
For commercial properties demand, Clarke says: "20% of Reem Island’s accommodation has been allocated for commercial use which might just cover the existing demand for commercial property. Realistically we believe that a figure more like 60% should be allocated for commercial use to satisfy future demand.
Clarke adds: "Unfortunately it is usually the smaller investor that gets let down in times like this. The time for ‘flipping’ has now gone and we need to focus on longer term investments, whilst also spreading our marketing net wider.”
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