On Behalf of   In the latest pool of residential supply to hit the market, Aldar Properties, the capital's largest developer, will in June commence handover of 511 units at Al Bandar, the first residential precinct to be occupied in Al Raha Beach.

Business & Finance Club - Real Estate - Abu Dhabi:

Reflecting the robust demand for units in off-island investment zones, 408 apartments in Al Bandar were sold out during the launch phase. With investors and mortgage providers eschewing off-plan sales, Aldar has strategically launched a sales phase for the remaining 103 units nearing handover.

"We are open to both individual and institutional investors. We have talked to various parties about investment opportunities," says Rami Nasser, director of sales and commercial leasing at Aldar Properties.

The precinct comprises Al Naseem, a gated community of three apartment towers, Al Barza (loft-like residences), Al Manara, a marina and a retail boulevard. While it is common to find more distressed listings for projects close to completion, "there are a limited number of Al Bandar units available on the secondary market owing to the high demand among end-users. Most homeowners are looking forward to completion of their units in Al Bandar. It's so close to handover that all are holding onto their units, waiting to move in or lease it out," says Nasser,

Market experts predict that these new off-island apartments, with their high quality facilities, could entice residents from Dubai's fringes and encourage families to move out of old buildings in the capital's mainland.

"Abu Dhabi has a large number of end-users and families looking to move into a new home. However, there are also certain investors who'd like to buy units in Al Bandar and later lease them out," says Nasser.

Apart from being self-sufficient in terms of retail and leisure facilities, units in Al Raha Beach will also benefit long-term from the proximity to the airport, Saadiyat Island and Yas Island.

Leveraging the beachfront location, the developer aims to introduce marine transport such as water taxis and ferries to ease transport between the 11 precincts. A light rail system is also being planned to provide mass transit throughout the development. Aldar Marinas will operate the 150-berth Al Bandar marina, which can accommodate yachts ranging from 9 metres up to 24 metres. Although the service fees are being finalised and will be announced to homeowners before handover, Aldar says facilities management will be done in-house.

Long-term finance attractive

Though financing was hard to come by for investors and developers earlier, Nasser claims the new interest rate cuts offered by Abu Dhabi Finance and a raft of banks should prompt end-users to opt for long-term finance.

He says there has been a mix of cash buyers and mortgage-funded purchases in Al Bandar. "Many banks are willing to finance an LTV (loan to value ratio) of 85 to 90 per cent for Aldar's developments. They charge interest rates from 5.75 per cent to 8 per cent."

With credit drying up, most developers had to restructure payments for their investors. "We've also worked with our buyers based on their specific circumstances and assisted them whenever possible," Nasser adds.

After delivering Al Bandar, Aldar will continue handing over offices in the coin-shaped HQ building in the Al Dana precinct and focus on delivering the Ferrari World theme park on Yas Island later this year. Two other residential developments in Al Raha Beach, the Al Muneera (1,445 units) and the Al Zeina (1,221 units) will be handed over in Q1 and Q2 of 2011.

Meanwhile, the master developer has announced significant progress in key infrastructure related to the Al Raha Beach development.

As part of this, a number of interchanges on the Abu Dhabi-Dubai highway are getting ready for opening. The interchanges to the HQ building and Al Raha Gardens have been partially opened to traffic while access to Al Bandar development will be fully open next month.

Aldar's HQ building in Al Raha Beach has applied for Leed (Leadership in Energy and Environmental Design) silver certification.

According to the developer, sustainable features in the upcoming Al Bandar residential precinct include pre-fabricated elements during construction while the bulk of building materials were sourced locally to minimise the carbon footprint. Materials were sourced from outside the UAE from sustainable sources, according to the developer.