Abu Dhabi’s Aldar Properties has won a contract to build 996 villas in the United Arab Emirates capital, the company’s chairman said, expecting to see at least two per cent growth in the emirate’s real estate market this year.
Ali Eid al-Muhairi told reporters on the sidelines of Cityscape exhibition on Tuesday that the Abu Dhabi housing Authority has awarded the company a contract to build the villas in Al Falah area of Abu Dhabi, without giving a value for the contract.
Aldar, which in the process of merging with rival Sorouh Real Estate to create a real estate entity with assets of about $13 billion, has sold 125 villas in Al Raha beach in the first quarter of the year, he said.
“Aldar is already building 4,857 villas in the area of which 2,079 have been handed over. The 996 will be additional,” al-Muhairi said.
He admitted that new stock entering the market will slow down growth in the emirate’s real estate sector.
“Home prices in Abu Dhbai will go up two to five per cent by year end,” al-Muhairi said.
“I’ll be happy to see prices stabilise due to all the new stock coming in. We are not announcing any new projects and will focus on completing existing ones.”