Abu Dhabi will construct up to 350 residential towers by 2012, in an attempt to address the emirates’ crippling housing shortage, an official has said.
The towers will offer over 30,000 apartments and be built at Madinat Mohammed bin Zayed near Abu Dhabi, according to a report by UAE daily Khaleej Times on Sunday.
Jawan bin Salim Al Dhahiri, head of Municipal Affairs Department at Abu Dhabi Municipality, told the newspaper the project is part of a government expansion plan aimed at addressing the housing shortage.
Up to 75% of the apartments will be one bedroom units, while the remaining apartments will have two bedrooms.
The massive construction project will be completed by June 2012, and includes a large infrastructural works operation involving roads, sewerage and electricity implementation.
Schools, mosques and health clinics will also be constructed at the development which is located 15km from Abu Dhabi city.
A rapidly increasing population has seen Abu Dhabi struggle with an on-going housing supply crisis, with some estimates placing the shortage of houses in the emirate as high as 50,000 in 2008.
Rents and property prices in Abu Dhabi surged 22% and 18% respectively in the second half of 2007, according to HSBC, while office rents have grown around 40% over the last two years, according to property consultancy Colliers.
Many of the units coming on to the market are designed for those with high incomes while people with medium or low incomes have been worst hit by the high rent.
Experts have predicted that new buildings in Abu Dhabi will meet only 20% of the shortfall in 2008, which is likely to result in a housing crisis in 2009.
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