Developers are vying for prime positions on the vast Al Reem Island project (pictured above), with investment so far reaching Dh24.55bn, the head of a leading property company has said. Dr Abulraman Al Tassan, chief executive of Rakaa Properties, part of Rakaa Holding, said competition between firms in the mega-build was healthy.
And he said the legal and financial climate to invest on Al Reem was never better.
Recent figures show the volume of real estate investment in Abu Dhabi is expected to reach up to Dh600bn over the next two decades. Equally, the volume of investment activity recorded for projects under development on the island until mid-September 2007 was estimated at Dh24.55bn.
Al Tassan, whose company has invested Dh1.2bn in three ‘smart home’ technological towers on the island, said legislative reforms has triggered unprecedented inward foreign investment in commercial and residential units. “This, in turn, has enhanced the influx of capital into the regional real estate market, which has grown substantially enough to enter into competition with the real estate markets in the United States, the United Kingdom, Singapore and other countries,” he said. “Al Reem Island is considered a magnetic draw for real estate investment in the region.
“These substantial figures indicate the significance of the island on the architectural map of Abu Dhabi,” said Al Tassan. “Various real estate reports have categorised Al Reem Island as a first-class tourism project featuring the latest in smart home technologies, as well as other technologies that will be used for the first time in the world.
“Abu Dhabi has a huge investment potential, due to its political position as the capital of the country and its global reputation.”
He said other reports have concluded the growth of the Abu Dhabi real estate market could be attributed to petro-dollar ‘recycling’ resulting from the recent windfall of oil revenues. Other diversified revenues of non-oil sectors, which already account for a significant share of the Abu Dhabi GDP, also contribute to the flow of surplus liquidity in the booming real estate market. Rakaa Properties is one of the region’s leading real estate companies to investment in Abu Dhabi’s renaissance. It has launched three towers on Al Reem. Earlier this year, the company unveiled the blueprints for its developments, namely the Marina Tulip Tower, the Dynasty Tower and the Falcon Crest Tower.