Aldar Properties, Abu Dhabi’s biggest listed developer, completed the sale of all homes at a newly launched project on Yas Island as the UAE’s property market continues to recover from the impact of the coronavirus pandemic.
The company registered total sales of Dh1 billion ($272 million) from the sale of 312 residential units at the Magnolias, the third phase of its Yas Acres Development, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
“Our strategy to increase overseas buyers across our developments is working and we are proud to welcome a new wave of international investment into Abu Dhabi,” Rashed Al Omaira, chief commercial officer at Aldar Development, said.
The project recorded the highest percentage of overseas sales than at any other development launched by Aldar this year, according to the company. Overall, international and resident expatriates represented 55 per cent of the customer base, while UAE nationals accounted for the remaining 45 per cent.
The UAE property market, which softened due to a three-year oil price slump that began in 2014 and oversupply concerns, is showing signs of recovery as people upgrade to larger homes with outdoor amenities amid a remote working and learning trend sparked by Covid-19.
Economic support measures and government initiatives – such as residency permits for retirees and remote workers, and the expansion of the 10-year golden visa programme – have also helped to improve sentiment.
Average residential prices in Abu Dhabi increased 2.2 per cent in the year to August, with average apartment prices rising 1.9 per cent and average villa prices increasing 3.1 per cent, according to a new report from real estate consultancy CBRE.
Aldar plans to unveil five new projects in 2021 on Reem, Saadiyat and Yas Islands as it aims to equal or surpass its 2020 sales of Dh3.6bn ($980m), Jonathan Emery, chief executive of Aldar Development, told The National in May.
In August, Aldar reported that second-quarter profit jumped 7.6 per cent to Dh520m as revenue for the period climbed 9 per cent annually to about Dh2.2bn. The company recorded Dh2.35bn in quarterly sales, its highest, it said at the time.
Construction of Magnolias is due to begin in the first quarter of 2022, with handovers expected to start in the third quarter of 2024, according to Aldar.
The company is also finalising the next phase of Yas Acres with 120 new properties at ‘Dhalias’ set to be released to the market by the end of the year.