Aldar Properties awarded contracts worth Dh1 billion for the development of Alreeman in Alshamkha and Reflection on Reem Island as projects progress on schedule, the Abu Dhabi developer said on Sunday.
The Alreeman contract, worth Dh794 million, is for the development of infrastructure and was awarded to Abu Dhabi-based Tristar Engineering & Construction. The main contract for construction work at Reflection is worth Dh220m and was awarded to Fibrex Construction, also based in Abu Dhabi, in April, the company said.
Land plots went up for sale at Alreeman in April and generated Dh1.6bn in sales for Aldar. The contract work includes road construction, telecom systems and irrigation. The hand over of the work on the 2.8 million square-metre development is expected by July 2021.
Work at Reflection, the two residential towers on Al Reem, is expected to be completed over the next two years, Aldar said.
Abu Dhabi's biggest listed developer also said progress is taking place across all its projects at Yas Island, Saadiyat island, Alghadeer and Reem Island.
On Saadiyat, Mamsha Al Saadiyat and Jawaher Saadiyat projects are set for hand overs this year with construction work “substantially complete”.
At Yas Acres, Aldar's flagship golf and waterfront villa and townhouse development, all 652 planned villas and townhouses are at various stages of completion. Works at Water’s Edge and Mayan project are also continuing.
At Alghadeer, Aldar’s sustainability focused masterplan community, excavation works are now almost complete, with foundation work making progress. Situated close to the border of Abu Dhabi and Dubai, Alghadeer features over 14,000 homes, commercial properties, cultural and institutional amenities and entertainment attractions to be built over the next 15 years.
The UAE property market slowed in the wake of the 2014 drop in oil prices, with tenants and buyers seeking more affordable options. The fall in residential sales and rental prices has eased this year and some analysts predict a market recovery as the cycle bottoms out.
Government initiatives such as the Dh50bn Ghadan 21 three-year economic stimulus package and a long-term visa system offering residency of up to 10 years to specialists in technical fields are expected to contribute to the recovery of the real estate market.
In April, the Abu Dhabi Government also made changes to related laws allowing foreigners to own freehold property in designated zones. Foreign investors in Abu Dhabi’s real estate market were previously granted leasehold for a maximum period of 99 years.
The change in the legislation is a boon to the real estate market, Maan Al Awlaqi, Aldar’s executive director of commercial, said recently. It will increase appetite among foreign investors for property in Abu Dhabi, he added.
Aldar properties, is in the process of formalising its Dh30bn joint venture agreement with Dubai’s Emaar Properties to develop UAE and international real estate projects.
The company’s revenues for the first quarter of this year climbed 20 per cent to Dh1.76bn, boosted by rising sales and strong development activity.