Saudi property developer Dar Al Arkan is planning to start out a brand new residential mission in Abu Dhabi subsequent 12 months, because the UAE‘s property market bounces again from the coronavirus-induced slowdown.
The mission would be the firm’s fourth within the UAE and first in Abu Dhabi, vice chairman Ziad El Chaar advised The Nationwide.
The Tadawul-listed firm, with belongings value greater than 32 billion Saudi riyals ($8.53bn), is presently constructing three residential tasks in Dubai — Dar Al Arkan Pagani Tower close to the Dubai Canal, City Oasis by Missoni and W Residences in Downtown Dubai.
“Abu Dhabi is a promising market … we’re in discussions with many events to accumulate some key plots to enter the market quickly,” Mr El Chaar mentioned.
The brand new mission, which is predicted to be launched within the first quarter of subsequent 12 months, will serve “second homebuyers, traders and the top person who resides at the moment within the previous areas of Abu Dhabi and wish to transfer to those extremely serviced communities”, he mentioned.
The mission may even give attention to Saudi residents as there are “an excellent variety of Saudi nationals who additionally put money into Abu Dhabi and spend probably the most of their holidays in Abu Dhabi”.
Mr El Chaar didn’t disclose the overall price of the mission however mentioned the corporate’s tasks are “sizeable”, with every mission valuing about “Dh1bn ($272 million)”.
The three Dubai tasks presently below development are valued at round Dh4.5bn, he mentioned.
The UAE’s property market grew sharply in 2021, because it recovered from the pandemic-induced slowdown. The development has continued this 12 months because the nation’s economic system stays on a robust progress trajectory.
Each Dubai and Abu Dhabi registered robust gross sales transactions this 12 months.
Abu Dhabi recorded 7,474 property transactions value greater than Dh22.51bn within the first six months of the 12 months together with 3,568 property buy and sale transactions value Dh8.9bn and three,906 mortgage transactions value Dh13.6bn, in accordance with knowledge launched by the emirate’s Division of Municipalities and Transport final month.
Dubai registered 25,972 property transactions within the first quarter of this 12 months, the best variety of quarterly offers since 2010, in accordance with Mo’asher, the emirate’s official gross sales value index issued by the Dubai Land Division in partnership with Property Finder.
The Dubai market additionally hit a 12-year excessive for the month of July, by way of the variety of gross sales, a report by Property Finder confirmed.
The UAE’s economic system, which expanded by 3.8 per cent in 2021, is forecast to develop by 5.4 per cent and 4.2 per cent in 2022 and 2023, respectively, newest projections from the UAE Central Financial institution confirmed.
The Worldwide Financial Fund expects the UAE’s economic system to develop by 4.2 per cent this 12 months and three.8 per cent subsequent 12 months.
Dar Al Arkan can also be increasing in Saudi Arabia, its dwelling market, in addition to in different GCC nations similar to Oman and Qatar.
The corporate is teaming up with Oman Tourism Improvement Firm, higher often called Omran, to develop a mixed-use actual property mission named “Aida” in Muscat with a complete funding of 6bn riyals.
The mission, protecting an space of 350 hectares, can be inbuilt three phases, the corporate mentioned earlier this 12 months.
The developer can also be partnering with Qatar’s Qetaifan Tasks to develop a premium residential mission in Qetaifan Island North.
In Saudi Arabia, the Arab world’s largest economic system, the corporate is collaborating with authorities entities similar to Roshn, King Salman Park and King Abdullah Financial Metropolis to unveil new tasks, Mr El Chaar mentioned.
Saudi Arabia goals to diversify its economic system away from oil as a part of its Imaginative and prescient 2030 programme. The nation is presently constructing Neom — a $500bn metropolis of the long run — and different developments in Riyadh and different cities.
Mr El Chaar is bullish concerning the property market within the GCC amid increased financial progress.
“I can see that many of the markets have a optimistic outlook, given the financial progress of the area, the value of oil and decrease inflation in contrast with many nations globally,” he mentioned.
Saudi Arabia’s economic system expanded 11.8 per cent within the second quarter after recording the best fee of progress within the final 10 years through the first quarter, in accordance with Common Authority for Statistics.
Dar Al Arkan will finance new tasks by a mixture of debt, fairness and proceeds from off-plan gross sales, Mr El Chaar mentioned.
“We closed our 14th spherical of sukuk two weeks in the past and we efficiently raised $400m, even through the powerful local weather of fixing rates of interest. That is how a lot the worldwide traders belief the model,” he mentioned.
The cash can be used to “assist our steady funding programme and for a number of areas in enterprise improvement and development”, Mr El Chaar mentioned.
Up to date: August 16, 2022, 4:30 AM