Al Reef Units Will Add To Rising Inventory In CapitalFriday, February 17, 2012
Abu Dhabi: Up to 1,482 units will be handed over by Manazel Real Estate at Al Reef Downtown beginning in April, putting further pressure on rental and sales values in Abu Dhabi.
"The second phase of handing over of 347 units will start by the end of April, 343 units in July, 340 units by end of September and 452 units by end of December," said Manazel in a statement, which added that stores and the community plaza will be completed in December.
Craig Plumb, director of research for Jones Lang LaSalle, said: "With significant levels of supply inflow in many sectors, the market is expected to increase in competitiveness which will lead to a wider spectrum of choices for tenants and occupiers this year."
Average prices in the UAE's real estate market are expected to fall further, said Plumb. "Lower prices, more choice of higher quality product and its role as a regional safe haven will increase the attractiveness of the UAE market to both occupiers and investors in 2012," he added.
Plumb did not provide a specific forecast for the anticipated drop. "The real estate market for residential units will witness further price drops since rents and sales prices of this sector has not yet bottomed out," said Plumb.
"This year will be worse for Abu Dhabi's property market — prices are expected to fall further in order to meet the oversupply of units, particularly with the completion of the new housing units." According to Jones Lang LaSalle report, some 27,000 new homes will enter the market this year.
Mohammad Mehana Al Qubaisi, chairman of Manazel Real Estate, said: "Al Reef Downtown is a key binding agent in bringing together the surrounding villages, where it will serve as a hub for residents looking for the highest standards of service and luxury.
"Manazel recently completed a district cooling station entirely dedicated to Al Reef Downtown at a cost of Dh101 million which will provide the area with 8,000 tonnes of chilled water energy to help reduce harmful emissions and decrease energy consumption."
According to the Manazel statement, the first stage of Al Reef Downtown's development which was handed over last December cost Dh1.5 billion. The development consists of 46 buildings and 1,818 residential units.
Source: Gulf News