Cityscape event returns with more affordable projects
UAE real estate developers will showcase their projects at the Cityscape Abu Dhabi exhibition this week. The focus is on affordable schemes and attractive payment options to entice budget-conscious buyers and stave off competition.
“Consumers are now, more than ever, spoiled for choice,” Tariq Allan, general manager at Abu Dhabi developer Mesab, said this month. “Property prices are [low] so buying in this market represents fabulous intrinsic value.”
It is certainly a “buyer’s market”, said Muhammad Binghatti, chief executive of Dubai’s Binghatti Developers.
“Abu Dhabi real estate has gained traction from investors interested in low-price inventory due to higher expected yields and flexible payment plans offered by developers.”
Cityscape Abu Dhabi is being staged at Abu Dhabi National Exhibition Centre from April 16 until 18. More than 15,000 visitors and 75 exhibitors from 60 countries attended last year’s event, according to Chris Speller, director at organiser Informa Exhibitions, and “we expect the same level of interest this year”.
Around Dh15 billion worth of projects are set to be launched during Cityscape, he said.
Binghatti, which has 40 projects across Dubai, is marketing its latest scheme, Binghatti Gateway in Dubai’s Al Jaddaf district. Mesab is promoting the 35-storey Park View residential tower in Al Reem.
Other projects include state developer Aldar Properties’ waterfront project “Lea” – in which 238 residential land plots are being offered for sale at prices starting from Dh999,000. Aldar is also promoting units at its Dh10 billion Al Ghadeer master plan, which launched ahead of Cityscape last year.
Imkan Properties, a wholly owned subsidiary of Abu Dhabi Capital Group, plans to introduce four projects: Al Jurf, a coastal community between Abu Dhabi and Dubai; Pixel, the first mixed-use component of its Maker’s District retail scheme; Nudra, a luxury beach villa community on Saadiyat Island; and Alburouj, a mixeduse scheme in Cairo.
The UAE is undergoing a real estate market softening in the past four years on the back of lower oil prices, which have constrained consumer purchasing power and driven a push for affordability across the country.
Residential sales and rental prices have fallen – consultancy JLL’s 2018 Year in Review report at the end of December found average rental prices in Dubai and Abu Dhabi had fallen by 11 per cent year-on-year, while sales prices fell 12 per cent year-on-year in Abu Dhabi and 8 per cent in Dubai.
However, developers are adapting to consumer demand for affordable property by bringing lower-cost products to market – as evidenced in many of the projects on show at Cityscape.
Developers such as Imkan – with its emphasis on design and feel – are targeting a new generation of homebuyers looking for more than just bricks-and-mortar projects, they are looking for architectural and cultural landmarks, said Mr Speller. “The focus has shifted towards providing liveable spaces for people to reside where they can interact with their communities,” he said.
Other factors set to buoy real estate in the coming months are Abu Dhabi’s Dh50 billion economic stimulus and new visa rules to encourage expatriates to stay longer and invest.
Mortgage terms are favourable, providing an incentive for long-term rental tenants to make an investment. “Buying is viable for many as bank instalments on mortgages are often lower than monthly rents,” Mr Allam said.
Some developers are taking it a step further and offering rent-to-own schemes on completed products – “which will be very attractive for the longterm rental market”, said Edward Carnegy, head of Savills Abu Dhabi, part of the global property consultancy. His team is advising on a rent-to-own development in Abu Dhabi scheduled for launch “imminently”.
Abu Dhabi is set to become the second largest city in the region after Riyadh in terms of gross domestic product by 2035, according to Oxford Economics.
“Irrespective of overall sentiment, projects that offer the right product at the right price are finding favour with buyers,” Mr Carnegy said.
Cityscape Abu Dhabi will also feature the free-to-attend Cityscape Talks seminars.