Aldar rakes in Dh1.4bn after Yas Island residential project sells out in 24 hours

Yas Riva, which consists of 151 canal-front villas, recorded interest from local and international buyers

Aldar's new project on Yas Island consists of 151 villas. The development has attracted international interest. Photo: Aldar

Aldar Properties, Abu Dhabi’s biggest developer, recorded sales of more than Dh1.4 billion ($381 million) for residential units at its new project on Yas Island in Abu Dhabi on strong demand from buyers.

Prices of units at Yas Riva, which comprises 151 canal-front villas, start from Dh8.3 million, and the project sold out in 24 hours of its launch, Aldar said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

While UAE citizens accounted for 52 per cent of total sales, residents and overseas buyers accounted for 48 per cent of sales, “giving a strong indication of Abu Dhabi’s growing attractiveness to both local and international investors”, Aldar said. Up to 60 per cent of all buyers are under the age of 45.

Abu Dhabi’s property has been recording strong demand for buyers as the emirate’s non-oil economy continues to grow amid its diversification efforts.

Abu Dhabi recorded 12,439 property transactions valued at Dh36.2 billion in the first half of the year, with Dh23.7 billion worth of sales and purchase deals and Dh12.5 billion comprising mortgage transactions, according to the latest data from the Abu Dhabi Real Estate Centre (Adrec).

Individual investors from 75 countries including the US, the UK, China, Russia and Kazakhstan also bought property worth Dh3.28 billion in the emirate during the period.

“Abu Dhabi [is a] very promising property market,” Rashed Al Omaira, acting director general of Adrec, told The National in a recent interview.

“There's a lot of demand. We've recently announced that year-on-year growth for foreign direct investment has exceeded 200 per cent,” he said.

Residential prices as well as rents have also been rising in the emirate. In the second quarter, Abu Dhabi’s average apartment prices registered a year-on-year increase of 6.2 per cent and average villa prices grew by 3.9 per cent, according to CBRE.

Apartment rental prices during the quarter rose by 6.6 per cent annually, while average villa rents increased by 2.5 per cent, the report said.

Aldar said in July that it recorded total UAE sales of Dh6.8 billion in the second quarter, up 7 per cent annually, on strong demand for new and existing developments in Abu Dhabi, Dubai and Ras Al Khaimah.

The company is also planning to launch more projects amid higher demand, including a luxury beachfront development at Al Fahid Island in Abu Dhabi and a new master development in Dubai, it said at the time.

About 1,800 new residential units are expected to go on the market until the first quarter of next year in Yas Island, Saadiyat and Al Reem islands, according to Mr Al Omaira.

He added that they “carefully monitor” the supply situation, taking into consideration the population growth and roll-out of new projects and previously approved projects “to make sure that we're in an occupancy rate that's maintained at a healthy delta in the real estate cycle”.

“When required, we can control a bit of the supply of stock and accordingly, mitigate a bit of the risk that might happen from a potentially oversupplied market. But currently, today, we're in a very optimistic market.”