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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SPECIAL REPORT SAADIYAT ISLAND
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
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%
2019
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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2019
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
2019
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
12
LUXURY POSITIONING OF ALDAR PROPERTIES’ OFFERING
· · ·
Larger than average property size Beachfront location with unobstructed views Easy access to retail and F&B offerings
2019
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.
14
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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2019
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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2019 2019
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.
2019
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
21
2019
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.
22
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SPECIAL REPORT SAADIYAT ISLAND
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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2019
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.
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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
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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