New build property in abu dhabi on the up

New build property in Abu Dhabi is on the up, according to official figures.

The emirate's Statistics Centre announced that the number of residential real estate completions jumped by 17.3 per cent in the second quarter of 2012. Abu Dhabi led the way, with the region accounting for 68 per cent of the new units, followed by 23 per cent in Al Gharbia and 9 per cent in Al Ain.

The average construction cost per square metre varied between AED3013 and AED 3382, added the department, depending on the size of the property. Buildings spanning 300 to 599 square metres prompted the biggest construction costs and were mostly used by landlords for residential purposes.

The news follows reports that public service workers who live outside of the emirate - in Dubai, for example, where rents are cheaper - will no longer receive housing allowance as Abu Dhabi attempts to encourage more people to live within its borders.

The rule, which will come into effect as of next year, will apply to both foreigners and UAE citizens, in an attempt to fill up the new housing space being created within the emirate. Abu Dhabi property prices have falling almost 50 per cent since the housing crash and unoccupied real estate may push values down further.

"Many new units have come up in Abu Dhabi, reaching the peak of its development cycle. The move is to create new demand and make sure the vacancy rates don't reach high levels," Matthew Green, research head at CBRE, told Reuters.

A spokesman for Jones Lang Lasalle welcomed the decision: "This is a positive move for Abu Dhabi's property market that will help create demand for housing where there's oversupply."