Sunday 19, March 2017 by Georgina Enzer

Real estate sector dominates Abu Dhabi foreign investment

Investors from outside of the UAE pumped $40.3 million into the UAE capital in February, with the real estate market taking the lion’s share of 44.61 per cent of the total shares, according to the Abu Dhabi Securities Exchange (ADX).

“The introduction and adoption of International Standards and regulations are absolutely critical to the development of the market in the Middle East.  Measuring and valuing construction projects and real estate consistently is a complete game changer and a catalyst for developing internationally competitive real estate markets in this region. It is important the region is 'talking the same language' as the rest of the world relating to standards, metrics and regulations,” Robert Jackson, RICS Regional Director said. “As the Abu Dhabi economy diversifies and real estate becomes an increasingly important component of that diversification, transparency, standards, regulations and robust but fair dispute resolution provide investors and corporate occupiers and end-users confidence in the market. Standards mitigate risk of delays and disputes and help drive efficiency into the sector.”

According to Rami Hreiki, Chief Development Officer, Bloom Properties, the UAE real estate market is showing some significant signs of improvement. Investors have to be more opportunistic to maximise their investment returns. This requires careful alignment of investment strategies with market requirements and client needs.

Further highlighting the increased investor confidence in the market from the new property laws, Talal Al Dhiyebi, Chief Development Officer, Aldar said: “There has been a significant amount of investment in Abu Dhabi, increasing its desirability for residents and tourists and Aldar is a central facilitator in its transformation.  Initiatives such as the recently implemented Abu Dhabi real estate law show that the government is committed to a fair and transparent property market, encouraging local and international investment alike. We continue to see strong demand for high quality homes, offices and leisure destinations, and this is supported by the performance of our current developments in the market, which still outperform the wider residential market.”

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