Property prices in newly-developing areas of Abu Dhabi have soared by more than 100 per cent thanks to high demand and limited supply.
Gulf News reports the likes of Al Raha Beach, an area developed by Aldar Properties, is among the sites experiencing the huge growth.
Purchase price increases also tie in with heightened rents in the Emirate, with the Khaleej Times reporting research from Asteco last month showing lettings are up 50 per cent on last year.
Quoted by Gulf News, United Group Holdings managing director Obaid Al Kaabi said:
“If the average price of a villa in Al Raha was Dh2 million (£283,000) two years ago, we find it today selling at more than Dh4 million (£566,000), and this simply is the outcome of the market’s imbalances, where strong demand is facing a very tight supply.”
He added banks with ‘loose’ credit policies were standing up cash for property investors keen to take advantage of the rises, which is aiding the increases.
United Group Holdings has recently joined forces with fellow property firm Manazel on the Abu Dhabi Building Material City project.
Based on the Abu Dhabi airport road, between Al Mussafah Bridge and Mohamed Bin Zayed City, the scheme will include a stock market, business centre, retail outlets and showrooms.
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