Residential projects, cultural hubs 'driving Saadiyat Island growth'

Residential communities and cultural and tourist attractions are driving the growth for Abu Dhabi's Saadiyat Island, said Cavendish Maxwell, a leading property consultancy and chartered surveying firm in the Middle East in its special report.

The Cavendish Maxwell special report lay focus 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, said Cavendish Maxwell.

Upcoming developments such as 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, it added.

Commenting on the report, Aditi Hariharan, the 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," she stated.

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, she added.

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 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, said the expert.

According to Cavendish Maxwell’s real estate intelligence platform Property Monitor, the average sales price for villas in Saadiyat Island was Dh15,705 per sq m and Dh15,156 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, it added.-TradeArabia News Service