The time to build is now; Cityscape panel
Construction resources will be over stretched for region's mega events
According to Gurjit Singh, chief development officer at Aldar, it is becoming more important to shorten the delivery times and delivery periods of construction stocks.
With the upcoming FIFA World Cup 2022 and Expo 2020 mega events, there will be a drain on construction resources, manpower and management resources, Singh added.
“At some point, all of these resources will be over stretched for these two events. Construction starts need to be very cleverly procured, arranged, delivery times need to be short,” he asserted at a panel at Cityscape.
He added that most of Aldar’s property portfolio lies in the corridor between Abu Dhabi to Dubai.
“You have a very strong logistics and business concentration,” he said. “This entire corridor is dotted with infrastructure investments, huge infrastructure investments on their own.”
In eight to 10 years, he adds, we will have the completion of Etihad Rail.
“If you develop in Abu Dhabi in as close proximity in Dubai, you are building in an area where utility rates are much lower, transactional costs are lower - 2% in Abu Dhabi compared to 4% in Dubai. So, you are here at a very advantageous position,” he said.
From his end, Christopher Taylor, CEO at Abu Dhabi Finance, added that as a lender, he is more attracted to community extension and expansion in established areas.
“If you provide developments that are in established or close to established communities with infrastructure, that makes me more comfortable as a lender,” he said.