Aldar looks to fill Abu Dhabi housing supply shortage with 2,000 new off-plan homes

Mayan, a project on Yas Island, is an investment zone residential development of more than 700 homes, including studios, one-, two-, three- and four-bedroom apartments as well as town houses, villas and penthouses. Courtesy Aldar Properties

Aldar’s West Yas waterfront scheme of more than 1,000 villas on Yas Island will be sold to UAE nationals only. Above, a scale model of the residential project. Courtesy Aldar Properties

Aldar’s West Yas waterfront scheme of more than 1,000 villas on Yas Island will be sold to UAE nationals only. Above, a rendering of the residential project. Courtesy Aldar Properties

Meera meanwhile will fill the market gap for a mid-income product on the popular Shams Abu Dhabi on Reem Island, with 400 homes to be built near the planned Reem Island Central Park. Courtesy Aldar Properties

Aldar Properties is to start marketing 2,000 new off-plan homes as it banks on a shortage of supply in the capital trumping a market slowdown.

Abu Dhabi's largest listed developer announced that it will launch sales at three new developments on Yas Island and in the Shams area of Reem Island at the Cityscape Abu Dhabi property show.

Aldar's West Yas waterfront scheme of more than 1,000 villas on Yas Island will be reserved for UAE nationals only to buy.

Mayan, a second project on Yas Island, will comprise more than 700 homes, including studios, one, two, three and four-bedroom apartments, as well as town houses, villas and penthouses.

Meera in Shams Abu Dhabi will comprise another 400 homes on Reem Island close to the developer’s planned Reem Island Central Park.

The new villas and apartments comprise some of the 7,300 new homes which Aldar reported in February that it planned to build in the capital over the next five years, confident that the fundamentals for growth in Abu Dhabi will not be severely hampered by lower oil prices.

“Our three new developments, West Yas, Mayan and Meera, will enrich Yas Island and Shams Abu Dhabi with high-quality homes to meet demand across all segments of the market,” said Mohammed Al Mubarak, the Aldar chief executive.

“This exciting pipeline of real estate developments is [part of] our strategy of monetising our land bank, growing our recurring revenues and delivering value for all of our shareholders.”

The news came as property brokers reported a sedate start to the year for property sales, but with prices for the capital’s stock of newer prime developments outperforming the rest of the market.

According to Cluttons, house prices in Abu Dhabi rose 24 per cent in 2014, down from 31 per cent the previous year.

However, the broker reported that the rate of house price growth in the capital had slowed significantly over the first three months of 2015, registering an average of just 0.5 per cent.

Cluttons said that average prices stand at Dh1,340 per square foot, something which equated to a 15.2 per cent rise in values during the year ending March 2015.

“Unlike in the lettings market, demand is expected to stabilise removing some of the momentum behind recent capital value growth,” said Steve Morgan, chief executive of Cluttons Middle East. “Still, capital values are expected to continue creeping upwards.”

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