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Abu Dhabi awards $5.7bn housing contracts

Abu Dhabi, April 18, 2011

Abu Dhabi's Urban Planning Council (UPC) has awarded contracts worth 21 billion dirhams ($5.7 billion), a government official said on Monday, as the emirate seeks to address a housing shortage.

The contracts, awarded to four developers including Sorouh Real Estate, will deliver an additional 7,500 homes for Emirati families, taking the total number of homes to 13,000, the official said.

All related infrastructure facilities in the different areas where the houses will be built are also included in the value of the contracts.

"All the projects were tendered and evaluated. Deliveries will be starting from 2012 up to 2014," Falah Al Ahbabi, general manager of Abu Dhabi's Urban Planning Council, told reporters.   

Abu Dhabi government entities such as the Urban Planning Council (UPC), Abu Dhabi General Services (Musanada) and others are investing in billions worth of residential, commercial and infrastructure projects to meet short supply.   

Sorouh, Abu Dhabi's second largest developer by market value, said its share of the contracts was worth 2.89 billion dirhams ($787 million).

"We signed two contracts to build 1,000 villas in Al Ain and 470 villas in Sila," said Abubaker Al Khouri, managing director of Sorouh, after the signing of the contract.   

Other companies that won the contract include Tamouh Investments, Al Qudra Real Estate and Royal Development Co.   

Abu Dhabi's property market will be driven by government-related commercial and housing projects, as struggling developers focus on completion and delivery in the short-term, company executives said on Sunday.   

Scores of billion-dollar projects launched in recent years have slowed after developers across the United Arab Emirates suffered losses during the global financial crisis that put an end to a six-year construction boom.- Reuters




Tags: abu dhabi | Construction | Housing | UPC |

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