Aldar Properties, Abu Dhabi’s biggest developer, is constructing a Dh1.8 billion ($490 million) sustainable city on Yas Island.
The project will be built in partnership with Dubai-based Diamond Developers, said Jonathan Emery, chief executive of Aldar Development.
“The project will have 864 units and is positioned to complement other products Aldar is developing there,” Mr Emery said.
Construction will start in the fourth quarter of this year and will be completed in 30 months.
It will be financed through a mix of debt and equity by both developers, said Salah Habib, chief executive of Diamond Developers.
“Aldar today has a 2050 sustainability criteria and this partnership adds a lot of value to the table and allows us also to grow in achieving UAE’s sustainability agenda,” Mr Habib said.
The UAE aims to become carbon neutral by 2050 and plans to spend more than $164bn on a number of clean and renewable energy projects that are in line with its goal to reduce emissions and protect the environment over the next three decades.
The launch of the project comes at a time when the UAE property market is recovering from a coronavirus-induced slowdown. The market has received a boost from new government initiatives such as long-term residence visas and other measures.
“We are anticipating that market will stay strong as 2021 and it will depend on us getting the product right … we are staying close to the market and listening as we did last year,” Mr Emery said.
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“We have got a range of products to bring to the market this year and we are anticipating we can meet the demand. We are anticipating a strong year as last year.”
The emirate completed 3,932 property transactions, which included $3.1bn in mortgages and $1.25bn in cash sales. About 2,224 mortgage transactions and 1,708 sales transactions were concluded during the period, the department said.
The new project will have elements related to sustainability, including provisions for vertical farming, a reduction in water consumption, sustainable mobility and waste management.
Aldar, which has developed a number of projects in Abu Dhabi such as Ferrari World and Yas Mall, reported an 11 per cent jump in its third-quarter profit on the back of record quarterly development sales.
It unveiled several new projects recently, including Yas Acres Magnolias and Al Gurm Phase II.
Earlier this month, Alpha Dhabi Holding, a subsidiary of Abu Dhabi-listed conglomerate International Holding Company, bought an additional 17 per cent stake in Aldar Properties to increase its stake to 29.8 per cent.