Aldar boss predicts market recovery will take up to 9 months

The boss of the largest developer in Abu Dhabi said on Sunday that it would be six to nine months before any major improvement in the market.

Aldar Properties CEO John Bullough speaking to Arabian Business on the sidelines of property conference Cityscape Abu Dhabi said strong fundamentals underpinned the emirate’s property market, which has performed better than Dubai in the wake of the global crisis.

“At best it will be six to nine months before we start to see some significant evidence of improvement in the market," he said.

"I am probably a bit more cautious than that,” Bullough added.

“The fundamentals in the market of geography, wealth and excessive demand underpin the relatively strong prospects in this market,” he told Arabian Business.

Abu Dhabi has held up better during the property slump in the UAE but has not been immune to the global economic downturn.

Bullough said there had been a “pretty rapid reality check” and that prices had fallen on average 10 to 20 percent.

His comments come just hours after Aldar launched the AED9.4bn government sponsored Al Falah project which will provide 5,000 homes for middle income UAE families.

The first phase is due for completion in 2011.

On financing Bullough said Aldar could go to the debt markets this year to fund projects.

“We are constantly monitoring the finance markets and if the opportunity arises we will no doubt go and investigate.”

He stressed the company was not considering a share buy back scheme.

The CEO also said he was not concerned with Aldar’s share price.

Shares closed four percent down on Sunday at AED4.21.

“It would be silly of me to say we could not do better but I am broadly satisfied with the way we are performing,” he said.

Bullough replaced Ron Barrott as CEO in October 2008

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