terms of infrastructure or industry will encourage new investors, people who didn’t know Abu Dhabi before, to look again at the market. Particularly those from the region who want to invest in a more stable economy.” In another boon for the real estate sector, Abu Dhabi’s Executive Council
confirmed it had carved out financing for a metro and rail system to cross the capital. Te long-discussed project was thought to have stalled in the wake of the financial crisis, as the city reviewed its spending budget and infrastructure plans. Initial designs for the Abu Dhabi Metro show a 131km track backed by
tram and bus feeder systems. Te network, which is scheduled to launch by early 2017, is geared towards easing traffic congestion in the capital and supporting a predicted jump in the city’s population. Te metro is expected to connect Abu Dhabi’s Central Business District
with newer residential areas, including Reem Island, Saadiyat Island and Sowwah Island. Eventually, the network will link to the Dubai Metro and other key points across the UAE. Further details about the project’s budget and completion dates have not
yet been released but, if the impact of the Dubai Metro is any indication, the network may help push up rents. According to real estate consultancy Asteco, apartments near stations in Bur Dubai and Al Barsha districts have seen an up to 20 percent rise in rents as tenants favour locations with good transport links. “Land, property values and ultimately rentals within the vicinity of stations linked to metro lines increase significantly,” the company said in a recent report. “Close proximity to a station is becoming a priority for many [Dubai] tenants, who are prepared to pay up to 20 percent extra for the privilege.” Rail aside, Abu Dhabi is pouring funds into a revamp of two key roads
connecting the oil-rich emirate to neighbouring Dubai and to Saudi Arabia. Te first, a planned expansion of the existing Emirates Road to the capital, is expected to slash driving time for commuters and industrial traffic travelling from Dubai.
Abu Dhabi has also earmarked funds for the long-delayed Al Mafrag- Ghuwaifat road, which will connect the city to Saudi Arabia, the GCC’s wealthiest state. Te scheme is “one of the most important road developments in the emirate… to keep pace with economic growth,” according to the Executive Council. Te plan calls for extending the current road by 246km and building 15 new overhead interchanges. Unsurprisingly for an emirate home to one of the world’s fastest-growing airlines, aviation is at the heart of Abu Dhabi’s infrastructure strategy. Te emirate is funnelling AED25bn into readying its international airport to handle up to 40 million passengers a year by 2017, aided by the creation of a purpose-built terminal for state-backed carrier Etihad Airways. Te focus of the strategy is to exploit the Gulf’s location as a hub between
Asia, Africa, Europe and South America to draw transit traffic and increase connectivity. “Te extent of the development here will encourage investors to come and set up their business, to benefit from those economic links,” said Better Homes’ Lawrence. “Rising trade drives job creation, which will aid Abu Dhabi in attracting
residents and reigniting property demand,” she added. Te city’s 2030 development blueprint forecasts a population of up to
five million in less than two decades, up from an estimated 1.6 million in 2008. “Tere is a direct correlation between infrastructure investment, population growth and real estate demand,” Lawrence said l
APRIL 2012 I CITYSCAPE I 31
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