Vice President Development
Aldar Properties, Abu Dhabi
Tall buildings are functionally required in densely populated areas where the land cost is high & convenience for a multitude of goods & services is treasured. When comparing the population growth and land costs, justification for number of hi-rise buildings at Abu Dhabi City, Dubai Marina and Manhattan, NYC are compared. Tall buildings exhibit real estate developer ambitions to aim high and get noticed in highly dense zones. Their lengthy delivery process makes timing from launch to handover a critical success factor for the overall business model.
Real estate developers ultimately build what the market forces dictate. With the current outlook of rental reductions in the capital, reduced population growth and increase in demand for middle income housing, demand for hi rise living is subdued. Additional increased construction costs globally and decline sale price competitiveness had made developers rethink their strategies. However, with carefully planning and project components offered and design flexibility, developers will be able to realize their large scale, high rise, ambitions along with achieving their profit margins.