New Project of Aldar is Targeting Mid-Market Housing
Aldar Properties are planning to focus on middle income sector with new projects coming in demand in Abu Dhabi.
Picture Courtesy: www.thenational.ae
The company disclosed residential projects of 600-unit in mid-market last month in Al Reem Island, and is all prepared to announce another upcoming project in Abu Dhabi Cityscape, which is going to start next week. The company’s first project, Meera is aiming on middle income segment (the salary of which ranges between Dh10,000 to Dh25,000) and is more than 90% sold, the CDO of Aldar Properties, told in an interview.
Strong demand exists for mid-market housing. For example, 90% of the project Meera is already sold. People are searching for affordable housing with good facilities and they are robust in that aspect. Project Meera in Al Reem Island has one, two and three-bedroom apartments with range starting from Dh915,000, Dh1.35 million and Dh1.65 million resp.
Picture Courtesy: www.aldar.com
Expatriates from Arab & from West have purchased majority of flats in Meera. The company in future will launch an effective development at the same location next week and it’s going to be mid-market as well as quite affordable. Further details have not yet disclosed.
Abu Dhabi’s property sector has been getting impacted because of people losing their jobs but improvement is being seen as the government is spending largely on new projects, and companies setting up their businesses there in the new financial market called the Abu Dhabi Global Market.
Picture Courtesy: www.henrywiltshire.com
Projects valuing $37 billion are in line with Abu Dhabi including a new airport, nuclear power plant and other infrastructure related projects. There are also new companies that are being set up at the same location’s newest financial centre in ADGM, which will serve as a boost to mid-market housing. Financing of the new projects is not a major concern as they have enough cash and low debt to finance future projects. They have Dh6 billion of debt and some cash. Their business will remain funded for the next four to five years and will have no problems in this aspect.
The asset management business last year generated Dh1.6 billion of net operating income which provided cash flow with addition to the cash generated from the housing unit’s sales. The company experienced a net profit of Dh2.8 billion in 2016, up to 8 per cent of the previous year. They remain confident of performing fairly well this year and will continue to invest.
Source: Own A Space