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High Rental Yield in Abu Dhabi Offers Investment Opportunities

ABU DHABI - The real estate prices have gone below market values in Abu Dhabi, which has a rental yield of 13-17 per cent, as demand for housing outstrips supply, offering opportunities for long-term investment.

“This is the best time for buying properties in Abu Dhabi,” says MD Real Estate (MDRE), an Abu Dhabi based real estate firm specialising in commercial and residential sales and acquisitions.

Whilst some may be skeptical about whether or not Abu Dhabi can sustain its current development pace, MDRE remain confident that it can.

Demand still outstrips supply, the Emirate itself is not dependent on international funding and city planning strategies will ensure that the physical development of Abu Dhabi responds in a sustainable manner to the city’s current and future needs.

Amanda Clarke, director of marketing and business development, MDRE said, “We see current market conditions offering a fantastic investment opportunity, especially in the longer term. There are an increasing number of properties available at below market value.”

Abu Dhabi tops in rental yields against 4.5 per cent in New York, five per cent in London and Shanghai to between 13 to 17 per cent in Abu Dhabi.

“Although not immune to a global financial liquidity crisis, Abu Dhabi has not suffered the impact of the recession as much as other regional markets in the past few months. Of course there has been a slight slowdown in demand but whilst government backed developers continue to secure funding for their schemes, we do not anticipate any real long term contraction in Abu Dhabi,’’ said Amanda Clarke.

For commercial properties demand, Clarke said: “20 per cent of Reem Island’s accommodation has been allocated for commercial use which might just cover the existing demand for commercial property. Realistically we believe that a figure more like 60 per cent should be allocated for commercial use to satisfy future demand.”

· haseebhaider@khaleejtimes.com