Abu Dhabi Real Estate - Can they catch up with Dubai

                                                                                         

There's good news for the investors who thought they were a bit too late in entering Dubai real estate market. Another "Dubai" is in making and this time the stakes are even higher. So far, Abu Dhabi has been quietly observing the growth of Dubai in terms of real estate like a sleeping giant. Government of Abu Dhabi has now started to take initiatives towards Abu Dhabi's transformation into becoming or ever surpassing Dubai. Right now Abu Dhabi's real estate market has everything working in its favor.

Rising Economy:
The biggest Emirate by size, Abu Dhabi is one of the world richest cities in terms of Gross Domestic Product (GDP) and Per Capita Income. With crude oil & gas reserves projected to last another century, Abu Dhabi is the 4th largest supplier of oil. Also Abu Dhabi contribution to the United Arab Emirates economy is more than 60%. All of these indicators prove that Abu Dhabi’s economy can withstand the demands of upcoming boom in real estate industry.

Real Estate Projects:
Some major projects include Saadiyat Island, Yas Island, Al Raha Beach, New International Airport, Desert Towers, Khalifa City and much more. Some of these projects are really huge like Yas Island or Khalifa City. Over $450 billion worth of real estate development projects are planned for this year.

Investing Perspective:
Abu Dhabi holds many positives from investor’s point of view. According to the “Plan Abu Dhabi 2030” assessments, population will grow from less than one million to 3.1 million in 2030, while the number of tourists visiting Abu Dhabi will increase to 7.9 million from the present figure of 1.8 million. Population is largely made of expatriates, so the rents are increasing steadily. As HSBC research report shows, Abu Dhabi real estate prices have an approximate growth of 58%, compared to 37% growth in Dubai real estate prices.

Abu Dhabi government looks quite committed to diversify its economy; it’s only a matter of time before Abu Dhabi real estate market will reach the grandeur of Dubai real estate. Even after the present upsurge, the prices are still relatively low from international standard. With news that Abu Dhabi will be hosting the Formula 1 Grand Prix in 2009, Abu Dhabi is investing largely on its banking and tourism sector as well. Investor who can invest and hold their funds for some time, Abu Dhabi real estate will surely bring them great yields in coming years.

About the author:
William King is the director of Pakistan Real Estate & Pakistan Property Portal , UAE Dubai Property & Dubai Real Estate Properties Portal , Dubai Property & Dubai Real Estate and Dubai Property Rentals & Dubai Rents . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

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