Abu Dhabi: Time to move in

It's been a long wait for buyers wanting to invest in Abu Dhabi's real estate sector. After some delays, some of the major developments in the capital are nearing completion, with handovers currently underway in Al Bandar in the Al Raha Beach development. So, has the wait been worth it? What do these developments have to offer residents?

Real estate agents in the capital believe the market is beginning to stir up after a long lull. "A year or two ago, we saw a lot of people move to Dubai and do the commute for cheaper accommodation and better lifestyle facilities. Now, we are witnessing a reverse movement. There are three primary reasons: one, the rentals are more affordable, so people are moving to newer, better quality developments for cheaper rents.

Also, now you can buy your own place to live in. Thirdly, lifestyle facilities in Abu Dhabi now are much better than what was available earlier — the new shops, coffee shops, restaurants, leisure facilities, hotels and parking are a major attraction," says Andrew Covill, head of investment sales at LLJ Properties.

He agrees that project delays have dented investor confidence to a great extent and brought in some feelings of negativity. "Now, we are able to show finished or nearly finished products to people and that is changing the perception. As projects are completed and handed over, confidence returns to the market," says Covill.

Al Bandar, Al Raha Beach

Al Raha Beach, designed to offer a waterfront lifestyle, had an ambitious master plan of 11 precincts when it was conceptualised. However, soon after the construction work on three precincts — Al Bandar, Al Muneera and Al Zeina — started, the credit crisis struck and the developer was forced to slow down future phases and, instead, focus on precincts they had started work on.

"Al Bandar, which is currently being handed over, is the first phase and probably very exclusive in many respects. It is relatively small and has a mixture of 500 one- to four-bedroom apartments and some townhouses. A lot of cafes and restaurants will be added, including a marina-side seafood restaurant," says Covill, adding, "Once the retail that includes shops, cafes, restaurants and Spinneys open, it will be a real destination for people in the area.

"Some of the apartments on the ground floor have decks which open out to the water and have private berths for boats. You have separate marina berths as well. The project is close to the airport, so airline employees look at it with a lot of interest. It is also close to Dubai; so those working in that emirate will consider living here."

Some of the attractions at Al Bandar are a yacht marina, waterside balconies and terraces. Leisure facilities comprise a family and children's pool, two lap pools, one of which extends to the sea, tennis and squash courts and a clubhouse with a large gymnasium.

Sales price for studios start at Dh875,000, one-bedroom at Dh1.3 million, two-bedroom at Dh1.8 million, three-bedroom at Dh3 million and four-bedroom from Dh3.5 million to Dh5 million. Al Muneera and Al Zeina are expected to be completed by next summer.

Marina Square, Al Reem Island

This 14-tower development, which offers 3,500 residential units, will be completed in two phases. The first phase, comprising residential towers, is expected to be handed over by the year end although it was supposed to be completed by December last year.

"The towers are already completed and are awaiting handovers. The second phase will have hotels and serviced apartments, which are now under construction, and is expected to be complete in about 18 months from now. All the towers are set around the marina and there is an office tower along with a hotel," says Covill. Almost all units in the first phase were sold out when it was launched three years ago and they are now available on the secondary market, he adds.

Marina Square features studios, one-, two- and three-bedroom apartments and four- and five-bedroom penthouses. The majority are one- and two-bedroom apartments, some overlooking the marina and some with views across the Al Reem Island skyline. Many have balconies and all units enjoy access to leisure facilities. The podium area will house a shopping mall and restaurant, and will be completed early next year. The units will have access to a gym, two pools, children's pool, parking and concierge services. Five of the 14 towers are located on top of a shopping mall and will have direct access to the mall.

Covill expects prices to go up once the project is delivered, because of its superior facilities and build quality. Marina Square is located only two minutes away from Sowwah Island which will be home to the new Abu Dhabi Security Exchange, a number of other multinational corporation office occupiers and luxury hotels such as the Viceroy, Rosewood and Four Seasons.

Covill believes the proximity of Marina Square to Sowwah Island is bound to increase its value and popularity manifold. Prices of apartment units range from Dh1,100 to Dh1,200 per square foot, depending on the size and views. "Maybe some units with nice views will cost a bit more and will be in the range of Dh1,300-1,350 per square foot," says Covill.

He adds that rents will be confirmed on handover and are expected to be in line with the current market rates.

Sun and Sky Towers, Reem Island

Located close to Sowwah Island, the Sun and Sky Towers also enjoy all the benefits that Marina Square does. "Sky Tower is commercial (37 floors) and residential (32 floors) while Sun Tower is residential. Sky Tower, the tallest tower on Reem Island at 984 feet, has 474 one- to six-bedroom apartments while the 65-storey Sun Tower features one- to three-bedroom apartments and penthouses. They are linked by a podium which features a shopping mall and high end stores," says Covill.

The mall, Boutik, will add 13,400 square metres of retail space and will comprise 70 retail outlets, cafes and restaurants. Residents will also have access to leisure facilities such as a 50-metre lap pool, 70-metre infinity pool, three tennis courts, two squash courts and a yoga lawn. The development also features a health club and gym.

"These towers have 1,100 apartments and 800,000 square feet of commercial space. Sun and Sky Towers and The Gate Towers make up the Gate District that forms the first phase of Shams Abu Dhabi," he says. This development, which has been delayed by close to a year, will now be delivered by the end of this year.

"Being a new project, it did face some delays. There was no previous infrastructure on Al Reem Island, so it had to be built from scratch. After initial delays, the towers were expected to be delivered during summer this year. It took some time to get things finished and now, we are in the closing stages. Even Marina Square faced the same issues. For new buyers, it is a good opportunity — and prices are at a low," says Covill.

Depending on the size and view offered, the price of residential units vary between Dh1,100 and Dh1,300 per square foot while office space will cost in the range of Dh1,400 per square foot. Rents will be announced only after delivery.

Saadiyat Island

Construction on Saadiyat Island is on in full swing. It appears that the villa development within the Saadiyat Beach precinct is expected to meet its original completion deadline of July 2011. "The Saadiyat Golf Club was opened just under a year ago. It is the centrepiece of the first phase of Saadiyat.

"It includes a villa community of around 400 villas that are really high-end. It is built to be the most exclusive community here. Villas range from three- to eight-bedrooms and will be built within small communities, each sporting exclusive community and leisure facilities," says Covill.

The development will also be home to a cultural district with world-class museums such as the Louvre and the Guggenheim. The white sandy beach is one of the highlights for those who love island living.

"There are also a number of luxury hotels under construction such as Park Hyatt, Mandarin Oriental and St Regis. Work on the villas will be completed in July 2011, with a couple of hotels also slated to get ready around the same time. They are also building a beach club here," says Covill.

The sales price for villas on Saadiyat Island start at around Dh6 million and go up to Dh30 million and beyond. In future phases, there will also be apartments and another golf course.

Al Bandar

The original completion date was December last year, but the tower got delayed by almost a year. The project is currently being handed over.

homeowner view

• Marina Square's proximity to Sowwah Island is bound to increase its popularity.
•  Al Bandar has several leisure facilities such as tennis courts, pools, etc.