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Dubai, United Arab Emirates
Residential communities and cultural attractions drive growth for Saadiyat Island: Cavendish Maxwell Special Report
Cavendish Maxwell, a leading property consultancy and chartered surveying firm in the Middle East, released a special focus report on Saadiyat Island, the cultural mainstay of Abu Dhabi, with emphasis on three residential investment opportunities being developed by Aldar Properties: Jawaher, Mamsha and Saadiyat Reserve.
The report provides a macroeconomic and demographic overview of Abu Dhabi and aims to highlight the key differentiators and yield profile for Saadiyat Island as an investment destination.
In addition, it provides an analysis of the real estate market performance of Bilbao, Spain and neighbouring Downtown Dubai which have similar development profiles across culture, education, retail, leisure and tourism. The establishment of cultural and tourist attractions like the Guggenheim Museum and the Euskalduna Conference Centre and Concert Hall in Bilbao and Burj Khalifa and Dubai Opera in Downtown Dubai have been instrumental in making both locations preferred investment destinations with favourable yield profiles. Similarly, a positive impact in the form of real estate appreciation is being witnessed at Saadiyat Island at Aldar Properties’ new and upcoming developments.
Commenting on the report, Aditi Hariharan, Associate Partner, Strategic Consulting and Research at Cavendish Maxwell, said:
“With world-class offerings such as the Louvre Abu Dhabi and
New York University Abu Dhabi, and more to come, Saadiyat Island is shaping up
to be equally attractive for investors and owner-occupiers of residential
properties. Abu Dhabi’s latest move to open up the market to foreign buyers
will further drive demand
for one of the most sought-after destinations in the emirate providing a
superior lifestyle. This combined with the government’s efforts to
reduce various fees, offer long-term visas and diversify the economy will result
in positive results over time.”
Key market insights
Abu Dhabi’s real GDP in 2018 recorded an increase of 1.9% from 2017. The Department of Economic Development expects Abu Dhabi’s real GDP to grow to 3% and forecasts non-oil growth at 3.9% in 2019, driven by increased private sector participation.
According to Cavendish Maxwell’s real estate intelligence platform Property Monitor, the average sales price for villas in Saadiyat Island was AED 15,705 per sq m and AED 15,156 per sq m for apartments in Q2 2019.
Demand for the location, particularly Aldar Properties’ residential developments Jawaher and Mamsha, is driven by various factors such as convenient location and accessibility, proximity to cultural and educational assets, and larger-than-average property sizes.
Upcoming developments such Guggenheim Abu Dhabi, Zayed National Museum, The Abrahamic Family House and Saadiyat Grove, a mixed-use development by a joint venture between Aldar and Dubai’s Emaar Properties, are set to further enhance the appeal of the island.
Saadiyat Reserve is Aldar Properties’ first residential land community in the heart of Saadiyat Island. Spread over 422,370 sq m, it will offer 306 villa plots of sizes between 600-1,400 sq m. This is the first land plot development to be launched on Saadiyat Island since the government announced new laws in April 2019 allowing foreign buyers to own freehold property within 15 designated investment zones in Abu Dhabi. This initiative is expected to increase real estate investments by expats and stimulate the economy. Previously, Abu Dhabi only granted a leasehold of 99 years to foreign property owners.
For more detailed information download your copy of the Special Report on Saadiyat Island from Cavendish Maxwell here: https://cavendishmaxwell.com/insights/reports-and-whitepapers/residential-communities-and-cultural-attractions-drive-growth-for-saadiyat-island-cavendish-maxwell-special-report
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