The total floor area of projects approved by Abu Dhabi’s Urban Planning Council (UPC) more than tripled in the second quarter of the year with the amount of land under development in the emirate on course to be significantly higher in 2015 compared to last year.
The UPC said that 26 development projects spanning a total gross floor area (GFA) of more than 2.3 million square metres was approved during the second quarter – up from 708,999 sq m in the first three months of the year.
The number of projects approved was also up by just under 25 per cent quarter on quarter. Year on year there were fewer approved compared to the 46 projects that got the green light in the earlier period, but they had a much higher gross floor area.
Mohamed Al Khadar, UPC’s executive director for urban development and Estidama sector, attributed this to the completion of the integrated master plan for Al Reem Island, which dramatically boosted gross floor area.
He added that he expected this trend to continue as the year progresses.
“Usually, the summer is steady but we would expect a surge of approvals in Q3,” he said.
Overall, he said that the amount of gross floor area approved throughout this year could be 15 to 20 per cent higher than in 2014 after a number of projects recently gained concept approval, including the 186,000 sq m Reem Mall. These are expected to gain detailed approval in the next few months.
Projects approved during the second quarter included a block of three towers on a five-storey podium facing Abu Dhabi Corniche.
The towers, which will each be 24 storeys high, will house residential apartments.
Four basement and two podium levels will contain parking and there are retail and commercial units on the ground floor. The development will be built on an irregular, L-shaped plot offering views over the Corniche.
Another project is the 49-storey Saraya residential tower close to the Corniche Hospital, and two residential towers of 24 storeys.
In Mohammed Bin Zayed City, a 300-bed specialist hospital on an 82,000 sq m site was given the go-ahead.
It will consist of a main hospital podium building with four towers and a rooftop with a helipad for urgent cases.
In Al Ain, Abu Dhabi University has been given permission to expand its female student accommodation building by adding four new storeys with 21 residential units, a kitchen, discussion rooms, service rooms and a storeroom.
In Al Gharbia, a mixed-use project in Mirfa containing 186 residential units, commercial units and 192 car parking spaces was also given the green light for construction.
Mr Al Khadar said there was growing confidence in the market as a result of the recently-announced real estate law, which is currently being put into place by the Department of Municipal Affairs (DMA).
“That’s really made a difference in the market,” he said.
Mr Al Khadar added that he thought the new law could on the statute books by the end of the year.
Meanwhile, Knight Frank released a report which said that Abu Dhabi is likely to see an uplift in Grade A rents during the next 12 months because of the lack of prime office space in the market. This is despite lower numbers of inquiries during the first half of the year, which was attributed to “uncertainty stemming from lower oil prices”.
Matthew Dadd, who handles Knight Frank’s commercial leasing in Abu Dhabi, said: “The Abu Dhabi office market remains subdued in terms of new commercial premises under development.”
mfahy@thenational.ae
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