Abu Dhabi: Sorouh Real Estate, a major Abu Dhabi-based real estate developer, plans to deliver about 2,500 new residential units to end users in the emirate by the end of 2012, Gurjit Singh, the company's chief operating officer, said here yesterday.
"The deliveries will start in the first quarter of 2011, in phases. The handovers will begin with some apartments being delivered in Sun and Sky Towers," Singh told reporters on the sidelines of an industry conference. He said Sorouh's focus is on the delivery of its existing developments that are nearing completion and securing income from properties which will generate rental revenues. Singh said Sorouh delivered projects such as Khalidiya Village, Al Oyoun in Al Ain and Sas Al Nakhl which gave a boost to the company's rental income portfolio. "We are focused on the longer-term income portfolios which will have a multiplier effect in consolidating income for the company. We have finished Golf Gardens development, located adjacent to the Abu Dhabi golf course. Our Gate Tower project is on schedule to be completed in late 2012," said Singh.
Consolidation
Singh said 2010 has seen a lot of consolidation right across all asset classes in Abu Dhabi. "In my opinion, 2011 will see further consolidation as rental and capital values will drop to a level where people will come back to the market," he said.
Speaking on securing financing for the projects, Singh said the financial institutions are becoming more flexible in terms of their packaging, but liquidity remains tight. "It's very selective," he added.
Singh said the Abu Dhabi government's support for key infrastructure projects has kept up demand for real estate products, although he noted that sales of residential properties are still "very slow." Singh said real estate rents in the near-term will continue to fall as new supply comes onto the Abu Dhabi market.
Source: gulfnews.com
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