Sustainable developments with investor appeal
At a time when many property markets are suffering from the global credit crunch, Abu Dhabi’s real estate is showing resilience. More than 85 percent of exhibitor space in the upcoming Cityscape Abu Dhabi real estate show has already been sold; the show will be held in the Abu Dhabi National Exhibition Center April 12-22.
According to Dr. Ghassan Ali Al Khawaja, Chairman of key local property developer Al Sondos Holding, “The United Arab Emirates real estate sector remains an attractive investment target, especially in Dubai and Abu Dhabi where, thanks to substantial growth in the number of skilled workers, property demand is still greater than market availability. In addition, as a precaution, our government has guaranteed a significant amount of liquidity to keep economic development on course.”
Cityscape Abu Dhabi 2009 to showcase opportunities
As Cityscape’s Exhibition Director, Mark Goodchild, commented recently, “The UAE capital of Abu Dhabi is currently one of the most talked-about real estate markets in the world. While the global property development industry is currently facing certain challenges, Cityscape Abu Dhabi provides a timely opportunity to reassess where the longer-term returns for real estate investment lie.”
According to a Jones Lang LaSalle MENA Investor Sentiment Survey published in late 2008, the Abu Dhabi property market is expected to improve the most in the GCC over the next 12-24 months, following the recent downturn. The government’s commitment to keeping the emirate’s diversification programs on track is a key reason for Abu Dhabi’s continuing strong performance.
Another advantage for Abu Dhabi’s property market is its late entry into the global property-promotion arena. In contrast to Dubai, where the earliest off-plan investment projects were completed in 2002, the first completed off-plan units in Abu Dhabi will be delivered this year. Abu Dhabi remains a relatively new option for foreign buyers and is free from Dubai’s market saturation.
Current economic climate a “wake-up call”
Yet another reason for investors to target Abu Dhabi and the UAE market is that the government continues to upgrade the local financial sector and regulatory environment. Dr. Al Khawaja of Al Sondos Holding explains, “The current economic climate is in many ways a wake-up call to improve efficiency in various industry sectors. The UAE financial sector, for example, is being restructured with more laws and regulations to protect investors and end users alike. Major financial institutions are being encouraged to merge and become more robust in the global and national competitive markets.”
Crisis driving out short-term speculators
One benefit of the crisis is that it is driving out short-term speculators, which will help stabilize the real estate market this year, according to industry analysts. In fact, leaders in Abu Dhabi’s property market are very hopeful for 2009, thanks to continuing high liquidity and on-going demand for the high-quality property offerings set to come on the market this year.
Aldar’s Yas Island selling well
Several innovative developers have created new opportunities for investors in Abu Dhabi and continue to bring stunningly ambitious projects onto the market. One leader is Aldar, the Abu Dhabi-based property developer responsible for a range of commercial, residential, and retail projects in addition to luxury resorts. Aldar is known for its integrated developments that include strong environmental-protection features.
Yas Island, a key project for Aldar, has made headlines all over the world. Covering 6,175 acres, of which 4,199 acres will be claimed for development, the island is the home of Abu Dhabi’s Formula 1 race track as well as a host of related facilities and services, including a Ferrari driving school and the world’s first Ferrari Theme Park, a family-oriented attraction with outstanding rides and much more.
Abu Dhabi Grand Prix: November 2009
Abu Dhabi’s state-of-the-art new Formula 1 track will host its first Grand Prix event this year, on November 1. “A Formula One Grand Prix is one of the world’s most prestigious sporting events, in the same category as an Olympic Games or World Cup, and is unrivalled in terms of continuous global resonance,” said His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, when he signed an agreement with Formula 1 Management in 2007 to host a Grand Prix event in Abu Dhabi. He added, “For Abu Dhabi, and indeed the whole of the UAE, the opportunities that are presented by increased international attention and connectivity will deliver very real macroeconomic benefits.”
The track offers exceptional viewing opportunities all along the 3.4 mile circuit, which was designed by Herman Tilke. All kinds of facilities and services for visitors will enhance the experience of viewing a Grand Prix race in Abu Dhabi. “Abu Dhabi will bring its own unique culture, landscape and fans to the F1 experience. The track design alone is an indication of the visionary approach we are taking,” commented Khaldoon Khalifa Al Mubarak, CEO of Mubadala Development Company, at the signing ceremony.
Exceptional amenities for residents and visitors
Yas Island will eventually contain 3.3 million sq feet of retail space as well as a water park, golf courses, and luxury hotels, including the Aldar Signature Hotel overlooking the Formula 1 grandstands. Polo clubs, marinas, numerous food and beverage options, cultural and entertainment venues, and world-class apartments and villas will round out Yas Island’s attractions for visitors, residents and investors. Yas Island is connected by a new 10-lane highway to Abu Dhabi airport – which is 10 minutes away.
Al Raha Beach: luxury waterfront development
Aldar is also the creator of Al Raha Beach, a luxury waterfront development which includes 11 districts scattered over 133.3 million square feet; each district has its own special character. Crisscrossed by canals and featuring waterfront promenades and spectacular views, Al Raha Beach will be a new gateway to Abu Dhabi.
Saadiyat Island positioning Abu Dhabi as culture capital
Abu Dhabi’s Tourism Development & Investment Company (TDIC) is another prime mover in Abu Dhabi’s property sector. TDIC has launched the stunning Saadiyat Island mixed-use development, the cornerstone of the emirate’s drive to position itself as a culture capital.
Saadiyat covers 10.5 sq feet and is based on an eco-sensitive philosophy that includes a special low-density master plan. The project, set for completion by 2018, includes a modern, integrated residential community that will eventually be home to 160,000 people, as well as a full complement of leisure and tourism facilities, civic and cultural amenities.
Al Reem Island: open to foreign buyers
Al Reem Island is another ambitious project that is raising the global profile of Abu Dhabi’s property sector. It is being developed by Sorouh (Shams Abu Dhabi), Reem Developers (part of Reem Investments), and Tamouh. The mixed-use project on a natural island covers 72.2 million sq feet and is budgeted at more than USD 30 billion. It is one of Abu Dhabi’s first free zones: foreign nationals can buy property on a leasehold basis.
Around 22,000 residential units are planned, with the first buildings to be completed by 2009. Al Reem Island is being designed to ensure tranquility and spectacular Gulf views just minutes from downtown Abu Dhabi and just 20 minutes from the international airport.
Luxury apartments and villas are being equipped with the latest facilities and services, while the island’s commercial district includes shopping malls, art galleries, theaters, restaurants and more. Mosques, schools, medical centers and other services make Al Reem Island a world in itself. Sports lovers will have all kinds of options, from fishing, sailing, scuba diving, and snorkeling to golf. Al Reem Island will also contain its own central business district and several luxury hotels. Al Reem Island is Abu Dhabi’s biggest development to date. When completed in around 2023, it will be the home of over 100,000 residents.
Tamouh: ambitions unlimited
Tamouh’s projects on Al Reem Island include the City of Lights waterfront community, Danet Gateway office and residential towers, Fantasy Island entertainment district, Marina Square residential and commercial district overlooking the marina, and much more. Tamouh is also responsible for the Meena Plaza development in the heart of Mina Zayed, which will offer the ultimate in modern living, and it is the developer behind the headquarters for the Royal Group, a 15-floor office and retail tower complete with a range of amenities. It is also involved in the Danet Abu Dhabi mixed-use project.
Tamouh, launched in Abu Dhabi in 2007, reflects the dynamism of Abu Dhabi’s property sector. Tamouh’s future projects will include Abu Dhabi University City and many others. The young company’s motto is “ambitions unlimited”, and its track record certainly shows that it is living up to this guiding principle.
Najmat: prime location
Reem Developers is creating Najmat, The Star of Abu Dhabi, in a prime location along the Reem Island waterfront only 984 feet from Abu Dhabi’s downtown. Following stringent environmental criteria and designed with the help of international architects and urban planners, Najmat will be a “total community with an incomparable level of luxury, balance, harmony, amenity and stability,” according to the developers. It offers a wide range of opportunities for investors, including seafront plot options and office, residential hospitality and retail properties.
Sorouh: cutting-edge technology, respect for nature
Sorouh, the other leading developer of Al Reem Island, is known for its innovative design, state-of-the-art technology and the latest construction techniques. Sorouh’s projects on Al Reem Island include the spectacular Shams Abu Dhabi, a self-contained community for around 55,000 residents. The development is designed to make the most of its picturesque waterfront setting, offering Gulf views and including several coastal paths and pedestrian walkways along a unique canal network, which will be served by water taxis.
Central Park in Shams Abu Dhabi will include a number of recreational and educational facilities as well as 20 acres of green space surrounded by more than 188,889 sq feet of retail space, with a cultural center aimed to be a favored meeting place for locals and visitors. The development will also include a community center and restaurant complex and a theater district. The Gate District is the stunning entrance to Shams Abu Dhabi; it will integrate luxury high-rise residences, contemporary office environments, unique shopping, and world-class hotels. The Sky Tower will soar 74 stories above the Gulf.
Lulu Island: high-end and low-rise
Sorouh is also responsible for another island development, Lulu Island, which Sorouh’s Chairman, Saeed Eid Al Ghafli, announced last year at Cityscape Abu Dhabi. The natural island covers 1,400 acres and is clearly visible from the city’s waterfront. Designed as a reflection of Abu Dhabi itself, Lulu Island will feature high-end, low-rise, environmentally sensitive developments with large open spaces. It will include residential, resort and retail areas as well as canals, marinas and a public beach.
Zaya’s Nurai setting the bar for exclusivity
Zaya, an Abu Dhabi-based real estate corporation, is making headlines for its ultra-luxurious Nurai development, a private community of limited-edition, multi-million-dollar beach-front estates, water villas and resort facilities set on an island off Abu Dhabi’s coastline northeast of Abu Dhabi city. Nurai offers peace and seclusion yet is only minutes from the emirate’s business centers and attractions. Spread over 1.44 million sq feet, Nurai will contain one boutique luxury resort with 60 suites, 31 beachfront manor houses and 36 water villas. Zaya is working with New York-based Studio Dror and Paris-based AW2 concerning the design of the exceptionally exclusive new project.
Focus on sustainability, “green” features
Spectacular projects like these are only one side of Abu Dhabi’s property sector. The emirate is also making sure that its property developments are sustainable, in line with the government’s ambitious Plan 2030 and with its innovative Estidama Program – Arabic for ‘sustainability’.
According to new ‘green’ laws governing the construction sector, every new building in Abu Dhabi will have to adhere to even more stringent environmental standards, and sanctions will be imposed on developers who shirk the law. Abu Dhabi’s Urban Planning Council has the right to refuse building permits to any plan that falls short of the new environmental criteria. Existing buildings will also need to upgrade eventually to meet the new standards.
Just as Abu Dhabi is responsible for Masdar City, the world’s first carbon-neutral urban development, the emirate aims to be a global leader in creating innovative property projects that are truly sustainable.
