Saadiyat Island Special Report

SPECIAL REPORT

A B U D H A B I , U N I T E D A R A B E M I R AT E S

2019

SPECIAL REPORT SAADIYAT ISLAND

INTRODUCTION Spread over 27 sq km, Saadiyat Island is a world-class leisure, residential and business destination in Abu Dhabi, and is set to house some of the most premier cultural assets in the world.

In this special focus report, Cavendish Maxwell explores Saadiyat Island’s Cultural District, with emphasis on three of its residential offerings; Jawaher, Mamsha and Saadiyat Reserve by Aldar Properties.

The report aims to highlight the key differentiators and yield profile for Saadiyat Island as an investment destination, and analyse the real estate market performance of global destinations with similar development profiles across culture, education, retail, leisure and tourism.

The report covers the following aspects: Macroeconomic overview Demographic overview Location analysis and profile Communities by Aldar Properties on Saadiyat Island Global benchmarks

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CULTURAL 1. Louvre Abu Dhabi 2. Guggenheim Abu Dhabi 3. Zayed National Museum 4. The Abrahamic Family House

EDUCATIONAL 1. New York University of Abu Dhabi 2. Cranleigh Abu Dhabi

1

2

4

1

2

RESIDENTIAL

2

1. Mamsha

3

2. Jawaher

1

3. Saadiyat Reserve

3

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SPECIAL REPORT SAADIYAT ISLAND

ABU DHABI ECONOMIC OVERVIEW Real GDP in 2018 recorded an increase of 1.9% from 2017. Abu Dhabi’s 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. The AED 50 billion stimulus package announced for 2019 - 2021 is expected to boost Abu Dhabi’s economy, which is forecast to grow by 3.4% in 2019.

GDP Contribution by Sector in Abu Dhabi, 2018 Abu Dhabi’s economy has been significantly impacted by the oil price decline, with its heavy reliance on the sector.

2% Professional, scientific and technical activities

6% Others

Performance is expected to improve as the government diversifies the economy into sectors including health,

49% Mining and quarrying (includes crude oil and natural gas)

2% Transportation and storage

energy, tourism, transport and manufacturing.

According to the latest available data from the Statistics

3% Electricity, gas and water supply; waste management activities

Centre Abu Dhabi, GDP at constant prices stood at AED 797 billion in 2018, growing at a CAGR of 2.1% since 2014.

3% Information and communication FDI inflows grew at a positive CAGR of 12% between

4% Wholesale and retail trade; repair of motor vehicles and motorcycles

2012 - 2016, and were expected to reach AED 108 billion in 2017.

AED 797 billion in total

4% Public administration and defence; compulsory social security

The real estate sector’s GDP contribution increased at a CAGR of 4.6% from 2014 - 2018 to AED 33.3 billion.

4% Real estate activities

The share of the education sector increased at a CAGR of

6% Manufacturing

4.9% during this period, to AED 8.9 billion in 2018.

10%Construction

7% Financial and Insurance activities

GDP IN ABU DHABI AT CONSTANT PRICES

FOREIGN DIRECT INVESTMENT CAGR 12% 120,000

20,000

720

0 733

770

789

782

797

2014

2015

2016

2017

2018*

Source: Statistics Centre Abu Dhabi; Cavendish Maxwell 2019 *2018 GDP is a SCAD estimate. e** = Estimated

4

7.15%

2012

2013

2014

2015

2016

Foreign Direct Investment

2017e**

YoY % Growth

5% 0%

YoY % Grown

10% 8.6%

40,000

100,887

740

60,000 88,095

760

15%

14.5%

12.8%

81,112

780

80,000

71,931

AED Billion

800

18.1%

60,898

AED Million

820

700

20%

100,000

108,045

CAGR 2%

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SPECIAL REPORT SAADIYAT ISLAND

POPULATION OVERVIEW According to the Statistics Centre Abu Dhabi, the Emirate recorded a population of 2.9 million in 2016, increasing 6% since 2012.

· · · · ·

From 2012 - 2016, the male population registered a CAGR of 3%, whilst the female population grew by 12%.

Between 2012 - 2016, non-citizen population registered a CAGR of 6.1%, expected to have reached 2.7 million, whilst citizen population grew by 3.7% to approximately 593,000.

In 2009, the average family size was 5.5 persons, according to the Department of Economic Development.

The average family monthly income for citizen families reached AED 47,000 and AED 14,900 on for non-citizen families.

In 2018, approximately 72% of the total population was between 20-49 years of age.

80+ 74-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 05-09 00-04

40%

60%

300,000

200,000

100,000

0

100,000

**e = Estimated.

Male

2,990

2,655

2,501

2,248

2,149

1,958

1,858

2,357

614

592

571

551

573

507

495

Citizens

2020 f

2019 f

0 2017

2,150 2021 f

500

2016

2,091 2020 f

1,000

2015

2,029 2019 f

1,500

2014

1,969 2018 f

Female Male Source: Statistics Centre Abu Dhabi; Cavendish Maxwell 2019 *f=Forecasted Note: 2013 population split by gender was not available. 2012 information has been used.

2,000

2013

1,912 2017

1,857 2016

1,832 2015

1,662

1,766 2014

0

2013

500

1.662

1,000

2,500

477

1,500

3,000

2012

1,873

1,488

1,488

1,323

1,178

1,050

890

673

2,000

673

2,500

853

3,000

3,500 Population (Thousand)

3,500

2012-2016 CAGR 6%

2,817

2012-2016 CAGR 4% 4,023

3,579

3,517

3,292

3,090

2,907

2,685

2,656

2,335

2012-2016 CAGR 12%

4,000

2012

Population (Thousand)

2,335

2012-2016 CAGR 3%

Female

POPULATION BY NATIONALITY 2012- 2021f*

POPULATION BY GENDER

4,500

200,000

636

400,000

2018 f

Age Range

POPULATION BY AGE AND GENDER 2018e**

Non-Citizens

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SPECIAL REPORT SAADIYAT ISLAND

PRO INVESTMENT POLICIES Real GDP is expected to grow by 2.5% between 2019 – 2022, reinforced by higher oil output. Economic diversification efforts, improving the business environment and achieving a sustainable finance ecosystem will be the major policy priorities going forward.

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SPECIAL REPORT SAADIYAT ISLAND

97.8 BILLION BARRELS 2018 oil reserves in the UAE are 5.7% of global reserves

1.08 BILLION BARRELS Abu Dhabi’s crude oil output in 2017, with strong demand from China and India.

GHADAN 21 •

An AED 48.9 billion investment plan including 50 initiatives to stimulate the economy with a focus on four areas - business and investment, society, knowledge and innovation, and lifestyle.

•

AED 20 billion allocated to the 2019 development package.

REDUCTION IN FEES

·

The Department of Culture and Tourism (DCT) reduced tourism fees from 6% to 3.5%, municipal fees from 4% to 2% and municipality hotel room fees from AED 15 to AED 10 per night.

·

75 municipality services fees were cancelled and 23 municipality fees were reduced by 10% to 50%.

10 - YEAR UAE RESIDENCY VISA In 2019, the government rolled out a long-term residency visa scheme for highly-skilled workers and investors, boosting expat confidence and expected to positively impact the business community.

SUSTAINABLE FINANCE AGENDA

Integrate Sustainability into the Regulatory Framework

Build Cooperation with National and International Stakeholders

Cultivate Communications, Knowledge and Awareness

Develop and Establish a Sustainable Finance Ecosystem

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SPECIAL REPORT SAADIYAT ISLAND

2019

SPECIAL REPORT SAADIYAT ISLAND

OWNERSHIP REGULATIONS New freehold law allows foreign investors to buy property or land within 15 designated investment zones.

路 路 路 路

Implementation of the new freehold law is expected to increase real estate investments by expats, stimulating the economy.

Previously, Abu Dhabi only granted a leasehold of 99 years to foreign property owners.

The move is expected to bridge the gap between the Abu Dhabi and Dubai real estate markets.

Expatriates who invest AED 5 million and above in UAE real estate are eligible for a 5-year visa.

DESIGNATED INVESTMENT ZONES

Al Jurf Ghantoot

Nurai Island

Saih As Sidrah

Hidd Al Saadiyat

Saadiyat Island Al Jubail

Al Fahid

Lulu Island

Yas Island Al Reem Al Reef Raha Beach

Al Falah

Masdar City

Al Shamkha

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SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL MARKET OVERVIEW Average sales prices declined in Abu Dhabi’s major investment zones by 12.6% for apartments and 12.1% for villas/ townhouses from Q2 2018 to Q2 2019. Rents also continued to fall during the same period with apartments and villas/townhouses declining 11.9%.

According to 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 April 2019.

AVERAGE SALES PRICE FOR APARTMENTS

20,000

20,000

18,000

18,000

16,000

16,000

14,000

14,000 AED Per Sq M

12,000 10,000 8,000 6,000

12,000 10,000 8,000 6,000

466,025

Al Reef

150,000 100,000 50,000

14,260 39,032 80,150

200,000

75,045 116,416 141,922

250,000

83,911 105,716

300,000

47,534

50,000

350,000

39,095 72,103

100,000

0

0 Saadiyat Island 3 BR

10 10

Al Ghadeer

80,947 124,889 161,857

127,555 49,249

102,315

150,000

160,536

168,001

200,000

137,683

287,784

AED Per Annum

400,000

250,000

Al Reem Island

500,000 450,000

300,000

Al Raha Beach

550,000

400,000 350,000

Yas Island

AVERAGE RENT FOR APARTMENTS

450,000 286,396

AED Per Annum

500,000

Saadiyat Island

0

AVERAGE RENT FOR VILLAS

550,000

7,922

Al Reef

8,772

Al Raha Gardens

11,495

6,857

Al Raha Golf Gardens

13,767

9,020

Saadiyat Island

2,000

14,348

10,032

0

15,705

2,000

15,156

4,000

4,000

110,309 159,153 202,608

AED Per Sq M

AVERAGE SALES PRICE FOR VILLAS

Al Raha Gardens 4 BR

Al Reef

5 BR

Saadiyat Island

Al Raha Beach Studio

Al Reef

1 BR

Al Reem Island 2 BR

3 BR

Al Ghadeer

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SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL SAADIYAT ISLAND MARKET OVERVIEW SURROUNDING MARKET SYNOPSIS Saadiyat Island is the emerging cultural hub of Abu Dhabi. Upon completion, the island is poised to become a residential, hospitality and commercial destination with artistic and educational assets.

Saadiyat Island

Al Jubail Island Al Reem Island

Abu Dhabi

Abu Dhabi International Airport

RESIDENTIAL

·

· ·

Houses prime residential assets, including a mix of completed and off-plan apartments and villas.

Major projects include Soho Square and Park View.

Waterfront villas on Hidd Al Saadiyat are popular with investors for their quality and spectacular views.

TOURISM

·

The island is home to 5-star hotels including Shangri-La, Park Hyatt, Rotana and St. Regis Hotel and Resort.

·

Features a golf course designed by Gary Player.

EDUCATION AND CULTURE

·

The Louvre Abu Dhabi, Manarat Al Saadiyat, New York University of Abu Dhabi and Cranleigh Abu Dhabi are present on the island.

·

Guggenheim Abu Dhabi, Zayed National Museum and The Abrahamic Family House are coming up over the next five years.

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SPECIAL REPORT SAADIYAT ISLAND

SAADIYAT ISLAND RESIDENTIAL DEMAND GENERATORS MARKET OVERVIEW Saadiyat Island is popular with residents and tourists alike. Demand for the location, particularly Aldar Properties’ residential developments Jawaher and Mamsha, is driven by various factors.

LOCATION

CULTURAL AND EDUCATIONAL ZONE

· ·

·

The Louvre Abu Dhabi, New York University Abu Dhabi and the Cranleigh Abu dhabi

·

Future projects include Guggenheim Abu Dhabi, Zayed National Museum and The Abrahamic Family House

Five-minute drive from downtown Abu Dhabi 20 minutes from Abu Dhabi International Airport

ACCESSIBILITY AND INFRASTRUCTURE

· ·

Well connected via the Sheikh Khalifa Bin Zayed Highway District cooling, internet and other amenities available for residents

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LUXURY POSITIONING OF ALDAR PROPERTIES’ OFFERING

· · ·

Larger than average property size Beachfront location with unobstructed views Easy access to retail and F&B offerings

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SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL OPPORTUNITIES JAWAHER Launched in 2017, Jawaher is a luxury community of 83 villas from four-bedrooms (480 sq m) to six-bedrooms (869 sq m). These larger-than-average villas are aimed at owner-occupiers.

Jawaher is currently 87% sold, at a value of AED 57.2 million*. Estimated yields are 3–4%.

THE GROVE Jawaher

Source: Aldar Properties; Cavendish Maxwell 2019 *This value represents sales by Aldar Properties and not by Tourism Development & Investment Company (TDIC). The percentage of units sold includes both TDIC and Aldar Properties sales.

NO. OF UNITS SOLD

AVERAGE SALES PRICE PER UNIT (AED)

AVERAGE SALES RATE PER UNIT (AED) PER SQ M

23,423

72

20,919,961

18,180

332

3,984

24

17

480

8,161

32

7,678,125

15,995

5 BR Villa

12

650

7,803

9

13,241,836

20,365

6 BR Villa

4

869

3,476

7

Option B

38

2,325

18,759

20,919,961

18,180

UNIT TYPE

NO. OF UNITS

Per Unit

Total

Option A

45

2,331

4 BR Townhouse

12

4 BR Villa

IFC GFA (SQ M)

4 BR Townhouse

12

332

3,984

4 BR Villa

16

477

7,630

5 BR Villa

7

649

4,545

6 BR Villa

3

867

2,600

508

42,182

Unit Total

83

Community Centre

1

Guard House

1

Total

72

1,174 11 43,367

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SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL OPPORTUNITIES MAMSHA Launched in 2014, Mamsha is a luxury apartment community built on three plots, each housing three buildings of one-four bedroom apartments, with attached retail and F&B establishments. There are nine penthouses (1,082 sq m on average). Apartments are larger than those found on the island and are anticipated to be purchased by both investors and owner-occupiers.

Mamsha is 42% sold, at a value of AED 246.6 million*. Estimated yields are 3 – 4%.

UNIT TYPE

Mamsha THE GROVE

Source: Aldar Properties; Cavendish Maxwell 2019 *This value represents sales by Aldar Properties and not by TDIC. The percentage of units sold includes both TDIC and Aldar Properties sales.

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NO. OF UNITS

IFC GFA (SQ M)

Per Unit

Total

NO. OF UNITS SOLD

AVERAGE SALES PRICE PER UNIT (AED)

AVERAGE SALES RATE PER UNIT (AED) PER SQ M

Tower Units

414

2,125

87,749

178

42,091,139

20,563

1 BR

36

111

3,930

18

2,242,873

20,275

2 BR

78

126

9,694

34

2,667,489

21,211

3 BR

123

155

19,057

60

3,206,587

20,680

1 BR

144

247

35,466

56

5,203,107

21,075

4 BR

24

405

9,823

9

8,771,083

21,649

Penthouse

9

1,082

9,779

1

20,000,000

18,491

Garden Units

47

509

11,617

17

9,176,451

17,910

2 BR

27

234

8,552

11

3,814,451

16,322

3 BR

20

275

3,065

6

5,362,000

19,499

Unit Total

461

2,634

195

51,267,590

19,237

Retail and F&B

27

298

Total

488

2,931

195

51,267,590

19,237

99,366 8,037 107,403

2019

SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL OPPORTUNITIES SAADIYAT RESERVE Saadiyat Reserve is a newly launched residential community. Spread over 422,370 sq m, it will offer 306 villa plots of various sizes, between 600-1,400 sq m, and is suited to accommodate four-six bedroom homes. 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 in Abu Dhabi.

THE GROVE

PLOT CATEGORY

SIZE (SQ M)

COUNT

AVG PRICE (AED)

AVG RATE (AED PER SQ M)

AVG AREA (SQ M)

AVG GFA (SQ M)

1

< 700

182

1,919,100

3,037

632

470

2

700-1000

61

2,619,347

3,135

836

589

3

1000+

63

3,446,949

3,170

1,087

778

Total

306

Saadiyat Reserve

Source: Aldar Properties; Cavendish Maxwell 2019

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SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL JAWAHER AND MAMSHA MARKETPROFILE OVERVIEW BUYER AND INCENTIVES As of May 2019, citizens of 36 countries have purchased property at Jawaher and Mamsha. UAE nationals represent the largest buyer group.

Others

Lebanon 3%

15%

France 3% United States 3% Iraq 6% Jordan 6%

Nationality Breakdown of Jawaher Buyers

United Arab Emirates 64%

Others

Jordan 3%

21%

Saudi Arabia 3% United Kingdom 3% United States 4% Canada 4%

Nationality Breakdown of Mamsha Buyers

Source: Aldar Properties; Cavendish Maxwell 2019

ALDAR PROPERTIES IS OFFERING INCENTIVES TO BOOST SALES

·

· · 16

Service charge waivers • Five years for Jawaher • Three years for Mamsha 2% Abu Dhabi Municipality fee waiver Saadiyat Beach Club membership

United Arab Emirates 62%

2019

SPECIAL REPORT SAADIYAT ISLAND

SAADIYAT ISLAND FUTURE OFFERINGS Zayed National Museum will chronicle the life and achievements of Sheikh Zayed bin Sultan Al Nahyan, and the UAE’s journey from the ancient past to the present.

ZAYED NATIONAL MUSEUM

Zayed National Museum

·

Set to be the National Museum of the UAE once completed in 2021.

·

Designed by Foster + Partners, will feature multiple exhibitions on the Father of the Nation, Sheikh Zayed bin Sultan al Nahyan.

·

Core gallery to include photographs, key documents and personal effects of Sheikh Zayed.

·

Other offerings include falconry, a conservation gallery and the Sheikh Zayed Library.

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SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL SAADIYAT ISLAND MARKET OVERVIEW FUTURE OFFERINGS Dubai’s Emaar Properties entered into a joint venture (JV) partnership with Aldar Properties in March 2018, to develop local and global real estate projects worth AED 30 billion. One of the first projects of the JV is Saadiyat Grove, a mixed-use development located in Saadiyat Island’s Cultural District.

SAADIYAT GROVE

NO. OF UNITS/KEYS

DETAILS

3,700 units

Mix of studios, 1, 2 and 3 beds

Retail

75,000 sq m of GLA

Retail, F&B, entertainment and alternative uses, including co-working spaces and art galleries

Hotel

300 Keys

3 star

Hotel

150 Keys

4 star

LAND USE Residential (including branded residences)

Saadiyat Grove

· · ·

18

Located next to the Louvre Abu Dhabi and the proposed Guggenheim Abu Dhabi.

Target audiences are UAE nationals and the expat rental and investment community.

Launch expected in 2020 and completion in 2023.

2019

SPECIAL REPORT SAADIYAT ISLAND

RESIDENTIAL SAADIYAT ISLAND MARKET OVERVIEW FUTURE OFFERINGS In 2006, Abu Dhabi and the Solomon R. Guggenheim Foundation in New York City agreed to build the largest Guggenheim Museum in the world at 30,000 sq m. Guggenheim Abu Dhabi will be located in Saadiyat Island’s Cultural District.

GUGGENHEIM ABU DHABI

KEY FACTS:

Guggenheim Abu Dhabi

Museum size (planned)

30,000 sq m

Architect

Frank Gehry

Estimated completion

2024

·

Centerpiece of the island’s plan for contemporary art and culture.

·

Includes exhibition galleries, education and research space, a conservation laboratory, a centre for contemporary Arab, Islamic and Middle Eastern culture, and a centre for art and technology.

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SPECIAL SPECIALREPORT REPORT SAADIYAT SAADIYATISLAND ISLAND

SAADIYAT ISLAND THE ABRAHAMIC FAMILY HOUSE The construction of The Abrahamic Family House was announced to commemorate the historic visit of Pope Francis and the Grand Imam of Al Azhar to Abu Dhabi in February 2019. Named after prophet Abraham, the building complex will be dedicated to interfaith harmony and will promote religious tolerance and acceptance.

THE ABRAHAMIC FAMILY HOUSE

The Abrahamic Family House

20 20

·

Interfaith complex in Abu Dhabi that will contain a church, mosque and synagogue.

·

To be designed by award-winning British-Ghanian architect, David Adjaye of Adjaye Associates.

·

Each structure will have a unique orientation and decorative facade made up of colonnades, screens and vaults.

·

A fourth, additional space will be created for worshipers to come together. It will also house the visitor centre of the complex.

·

Construction of the complex to begin in 2020.

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SPECIAL REPORT SAADIYAT ISLAND

GLOBAL BENCHMARKS BILBAO. SPAIN Bilbao is the 10th largest city in Spain and is the capital of the province of Biscay. It has successfully mixed traditional Basque culture with modern design after the old industrial complexes along the river Nervion started to rebuild to improve infrastructure, and after the city grew post the economic crisis in the 1970s.

University of Deusto

Palacio Euskalduna

Gueggenheim Museum

Bilbao Fine Arts Museum

Santiago Calatrava’s Zubizuri Bridge

Museum de Arte Sacro

Mercado de la Ribera

Source: Basque Statistics Office (EUSTAT); Cavendish Maxwell 2019

·

Bilbao, historically an industrial port city, is famed for the Frank Gehry–designed Guggenheim Museum Bilbao, which opened in 1997, prompted by revitalisation efforts for the city.

·

Other top museums are Bilbao Fine Arts museum, Museum de Arte Sacro and Eskal Museo Bilbao Basque Museum.

·

Major universities include the University of Deusto and the University of Basque, founded in 1968.

·

Other major tourist attractions within the city include Mercado de la Ribera, La Siete Calles, San Anton bridge, Iberdola Tower, La Alhondiga, Arriaga and Santiago Calatrava’s Zubizuri bridge.

KEY FACTS: Population (2018)

354,860

Tourist visits (2018)

932,000

Number of museums

19

Number of universities

3

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SPECIAL REPORT SAADIYAT ISLAND

BILBAO FACT SHEET In 2010, Bilbao was awarded the Nobel Prize for innovative cities, known as the first Lee Kuan Yew World City Prize, for its major transformation from the post-industrial economic downfall of the 1970s. After the collapse of its steel and shipbuilding industries, the city invested heavily in cultural infrastructure.

· ·

In 1973, after the economic crisis, a rehabilitation plan was designed to revamp the local economy and revitalise Bilbao.

·

The city was turned into a tourist spot with the development of two major buildings - the Guggenheim Museum Bilbao and the Euskalduna Conference Centre and Concert Hall, by Federico Soriano and Dolores Palacios.

The city was transformed in 1992 by the Bilbao Ria 2000 Plan by developing degraded and industrial areas, and environmental and public transport networks, including underground rail, trams, long-distance trains and the Bilbao International Airport.

· ·

Important events were also held at the Bilbao Exhibition Centre (BEC), La Alhondiga and other venues in the city.

Bilbao also became a business hub through the establishment of more advanced and less polluting technologies and R&D companies, attracting foreign investments.

GUGGENHEIM MUSEUM BILBAO

·

One of the largest museums in Spain, it consists of interconnected buildings with free-form outer layers of a titanium-sheathed mass of abstract sculpture.

· ·

Spread over an area of 24,000 sq m, of which 11,000 sq m is dedicated to exhibition space.

Recorded 1.27 million visitors in 2018, an increase of 70% compared to 2006.

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BILBAO REAL ESTATE MARKET According to the National Institute of Statistics (INE), Spain’s property market continued to grow steadily in 2018 with over 515,000 transactions recorded throughout the year, an increase of 10% over 2017.

AVERAGE RESIDENTIAL RENTS IN Q1 2019

AVERAGE RESIDENTIAL SALES PRICE

% Change (2014 - Q1 2019): 13%

55,000

18,000

50,000

16,000

45,000 AED Per Sq M

AED Per Sq M

60,000 20,000

14,000 12,000 10,000 8,000

40,000 35,000 30,000 25,000

6,000

20,000

4,000

15,000

2,000 0

9,830

9,972

9,152

10,000

14,400

0 2014

2015

2017

Q1 2019

51,288

1 BR

2 BR

·

Average apartment sales prices increased by 13% between 2012 - Q1 2019, from AED12,762 per sq m to AED 14,400 per sq m.

·

Luxury homes on the outskirts, closer to the waterfront and the Bay of Biscay, are more popular among investors looking for second homes.

·

Casco Viejo is in the city centre with commercial buildings and tourist attractions, whilst Santutxu and Begona are high-end residential districts.

·

Although there has not been strong demand for foreign investment historically in Bilbao, an increase in real estate investments

by Chinese investors was seen in 2018.

·

International buyers currently account for 3.1% of property sales, but the share is expected to increase.

·

Average gross yields in Bilbao are between 5.5 – 6.5%

Casco Viejo

Begona

Santutxu

32,800

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SPECIAL REPORT SAADIYAT ISLAND

UNITED ARAB EMIRATES DOWNTOWN DUBAI Downtown Dubai is a mixed-use freehold development by Emaar, spread over an area of 2 sq km. The area is the tourism hub of Dubai and houses the world’s tallest skyscraper Burj Khalifa, The Dubai Fountain, Armani Hotel Dubai, Dubai Opera District and The Dubai Mall.

The Dubai Mall

Burj Khalifa

Dubai Opera

The Dubai Fountain Souk Al Bahar

Source: Cavendish Maxwell 2019

·

Strategically located on Sheikh Zayed Road between Business Bay and Dubai International Financial Centre.

·

Multiple housing options, and entertainment, retail and leisure facilities available.

·

Well connected by public transport and the Dubai Metro via the Burj Khalifa /Dubai Mall Metro Station. Emaar Boulevard is the main arterial road, connecting major residential, leisure and commercial locations within the district.

·

Old Town is the only low-rise, Arabic-style residential development within the district, while high-rise contemporary buildings dominate the rest.

·

Major luxury hotels in the area include the Address Downtown, Vida Downtown, Manzil Downtown and Armani Hotel Dubai.

·

The Opera District is a new and developing cultural destination, featuring luxury hotels, residential and serviced apartments, a retail plaza, the Dubai Opera, waterfront promenades, recreational spaces and parks.

24

KEY FACTS: Population in Downtown Dubai (2018) Tourist visits to Dubai (2018)

18,698 15.92 million

Number of museums

47

Number of universities

27

2019

SPECIAL REPORT SAADIYAT ISLAND

DOWNTOWN DUBAI FACT SHEET Located in the heart of the city, Downtown Dubai houses Burj Khalifa – the world’s tallest building, The Dubai Mall – the largest mall and The Dubai Fountain – the largest choreographed fountain system in the world, among other attractions such as the Dubai Opera.

BURJ KHALIFA

· ·

The world’s tallest skyscraper was unveiled in 2009.

· ·

A record 3.5 million people visited the building in 2012-2013.

Total built-up area is 5.6 million sq ft comprising 1.85 million sq ft of residential space and 300,000 sq ft of office space. It also has health and wellness facilities and two observation decks.

The Armani hotel opened in Burj Khalifa in 2010 and features 160 guest rooms and suites, and 144 residences. The interiors of the residences have been designed by Giorgio Armani.

DUBAI OPERA

· ·

Established in 2016, Dubai Opera is a 2,000-seat, multi-format, performing arts centre.

·

Dubai Opera welcomed more than 45,000 visitors in 2018 with over 400 performances.

It features a variety of performances and events including theatre, opera, ballet, concerts, conferences and exhibitions.

25

2019

SPECIAL REPORT SAADIYAT ISLAND

DOWNTOWN DUBAI REAL ESTATE MARKET Branded as ‘The Centre of Now’, Downtown Dubai has grown steadily since 2009. Even though residential prices are on the higher end of the spectrum, healthy demand in the secondary market and good rental yields attract both end-users and investors.

26

2019

SPECIAL REPORT SAADIYAT ISLAND

AVERAGE RESIDENTIAL SALES PRICE

AED Million

6.0 4.0 2.0

5.1

4.9

3.8

3.3 1.4

4.2

4.2

3.0

2.7

1.8

1.9

2.6

1.7 1.1

1.3

1.3

1.5

2.4 0.8

1.4

0 2015

2015 Studio

2017

2018

1 BR

2 BR

Q1 2019

3 BR

270,000

AVERAGE RESIDENTIAL RENTS

175,000 80,000

127,500

88,286

65,000

185,000

143,714

166,000

99,750

100,000

55,000

150,000

108,000

200,000 95,000

AED Per Annum

250,000

81,900

190,750

300,000

50,000 0 2015

2016 Studio

DIFC

Downtown Dubai

2017 1 BR

2018 2 BR

Q1 2019

3 BR

路 路

As of May 2019, the average apartment net yield was 5.4%.

路

Current stock of over 9,600 apartment units, with an additional 5,000 units expected to be complete by 2020.

路

While Dubai has experienced a downturn recently, Downtown Dubai continues to be an attractive investment location.

In YTD 2019, over 1,300 apartment units have been transacted, making it the second most popular investment location in Dubai after Mohammed Bin Rashid City.

Business Bay

27

D U BA I

ABU DHABI

M U S CAT

2205 Marina Plaza Dubai Marina P.O. Box 118624 Dubai United Arab Emirates

605 West Tower, Abu Dhabi Mall Tourist Club Area P.O. Box 126609 Abu Dhabi United Arab Emirates

Villa 836, Way 3012 Al Sarooj P.O. Box 3438 Muscat Sultanate of Oman

T: +971 4 453 9525

T: +971 2 448 4677

T: +968 24 694 150

www.cavendishmaxwell.com