Construction costs in Abu Dhabi have fallen by around 30 percent since the boom in late 2008, the head of one of the UAE capital’s largest master developers told Arabian Business this week.
Lee Tabler, CEO of Tourism Development and Investment Company (TDIC), a master developer of major tourism projects in Abu Dhabi, said prices were now “very favourable.”
“TDIC has enjoyed the downturn in the construction market so a few of our projects have enjoyed 30 percent decreases in prices.
“From around late 2008 prices started to drop so we are taking advantage of that market condition,” said Tabler.
Tabler said the TDIC, which is wholly owned by the Abu Dhabi government, has around 55 projects worth approximately AED120bn ($32.6bn) under development and is aiming to take advantage of the declining construction projects to push ahead with their completion.
TDIC’s most high profile projects are located in the Cultural District on Saadiyat Island. Enabling and pilling work has already begun on the Louvre Abu Dhabi museum and the main construction work went to tender last month. The main contractor is due to begin on site in September 2010 and a completion date of September 2013 has been set.
On the Guggenheim Abu Dhabi, the main contractor will go to tender in October this year and will be returned by January 2011. The Zayed National Museum’s main contractor will be tendered in June and work is due to commence in November, in time for a completion date of September 2013.
The Saadiyat Beach project, which includes the Gary Player-designed Saadiyat Beach Golf Club, will also include a number of branded hotels from Rotana, Shangri-La, Mandarin Oriental, Park Hyatt and St Regis. The project also includes the Manarat Al Saadiyat exhibition centre, which was inaugurated in November 2009.
The TDIC said it plans to deliver 1,800 hotel rooms in the emirate by 2012, as well as over 1,700 residential units.
In terms of financing, Tabler said that TDIC would not require any more financing from the international bond market this year.
“We raised $1bn and then $1bn through a sukuk. Both bonds were five-year, and I don’t believe we need to raise further bond financing for the rest of 2010,” said Tabler.
Established in April 2006, the TDIC is part of Abu Dhabi’s strategic goal to attract 2.3m hotel guests a year by 2012.
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