Two bulk property deals helped Abu Dhabi’s largest listed developer Aldar Properties to sell three-quarters of the off-plan flats in the first phase of its Mayan development on Yas Island, the developer said.
Aldar sold some 75 per cent of the 512 flats in the first phase of the development – equating to 384 units – in the six months since the Dh980 million project was launched.
Aldar said that it had sold two of the five buildings which make up the first phase of the development on bulk deals to investors. It declined to say how many flats were included in each of the bulk deals or to give the names of the off-plan investors.
Developers tend to opt for bulk sales deals when the market is slow even though they usually make less money per apartment, but this is something which can be offset against a large number of guaranteed sales.
According to property broker JLL, Abu Dhabi house prices remained flat last year, after rising about 25 per cent a year in 2013 and 2014, as affordability levels became stretched and the government cut spending following the slump in oil prices.
Weak demand led the broker to warn that prices could come under downward pressure if transaction volumes remain low.
“In addition to this demand from end users, Mayan is capturing the interest of serious investors who recognise the potential for yield and capital gain.
“In fact the selling out of a pair of our buildings within Mayan is the result of two bulk deals – further indication of the resilience of the Abu Dhabi real estate market,” said Mohamed Al Mubarak, the Aldar chief executive.
Mayan, which will be located between Yas Plaza, Yas Beach and Yas Links golf course, is eventually planned to include 800 units with a total sales value of Dh1.5 billion.
Aldar said that enabling works on the project have commenced with main construction due to start in the third quarter, while handover is scheduled to take place during 2018.
lbarnard@thenational.ae
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