Aldar sees 'modest' rise in property deals in H1

Abu Dhabi's Aldar Properties saw land sale transactions pick up in the third quarter and expects the property market to stabilise next year, a top official said on Monday.

Shafqat Malik, Aldar's chief financial officer, told the Reuters Middle East Investment Summit the firm saw a modest rise in property sales in the first half of the year, at about 280 million dirhams ($76.23 million).

The company made no land sales in the second quarter.

"We started to see openings in the market, transactions are starting to happen," he said of land sales in the third quarter.

The property sector of the United Arab Emirates capital, home to most of the country's oil, has been more resilient to the global economic downturn, while neighboring Dubai has been hit harder.

Malik said Aldar, which had primarily focused on high-end properties in the country's capital, was also ramping up activity in the lower to mid-range sector.

"The buying power of users is there," he said, adding the company had seen strong demand for one to two bedroom homes.

But Abu Dhabi will still see a housing shortfall of between 12,000 to 15,000 units next year, Malik said.

"What is built now, will barely satisfy the shortfall." (Reuters)

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