Al Raha Beach is a $48 billion development in the Gulf. The heart of this development is the $5 billion commercial center for the 10.5 kilometer project. Construction has begun on Al Dana with several buildings underway. This brings total investment in the region up to $90 billion which includes the 6,000 acre Yas Island project as well as the Old Market in Abu Dhabi.
The recent announcements regarding projects in Abu Dhabi are good news for foreign property investors. Starting in September 2009, several of the offices will be completed, but it will be another four years before the remaining 11 neighbourhoods have been completed. The world property exhibition, Mibim, is where Aldar plans to expose the development to the international community with its partner, UK-based Liang Ororke. The exhibition will be a fine time to show the development sweeping across Abu Dhabi, and it is expected to increase investor interest in the already popular gulf nation.
Developers in the UAE have reported better than expected sales in 2007, and that is expected to continue in 2008. Most large developers are expecting rapid sales and construction activity to lead to better then average mid term growth that will continue for the next few years. Of note is the fact that less growth can be attributed to land sales and revaluations. It appears that development and investment properties are making up the bulk of revenues as more partnerships are formed in Abu Dhabi.
Fears that Abu Dhabi would become another Dubai are a bit unfounded. Goldman Sachs, the US-based investment bank, said, “We believe that greater infrastructure planning and sustainable development initiatives should avoid some of the growing pains that Dubai is experiencing.” Dubai may still be favored by industries already located there, but Abu Dhabi still holds significant long term benefits.
