Sowwah Island due for completion this quarter

Abu Dhabi: The first phase of Abu Dhabi's Sowwah Island is due to be completed this year, Peter Wilding, executive director of Mubadala Real Estate and Hospitality, said during Cityscape Abu Dhabi.

"We have been resolutely focused on delivery. Four towers with 180,000 square metres of Grade-A office space … are substantially complete. The first tower of Sowwah Square was handed over on March 20 and the remaining three towers will be delivered in the second quarter of 2011," Wilding said.

Sowwah Island is the centre of Abu Dhabi's new Central Business District (CBD). Abu Dhabi's Urban Planning Council (UPC) designated Sowwah Island as the centre of the CBD due to its position at the focal point of the city's business, cultural and residential areas.

Two luxury business hotels — The Rosewood Abu Dhabi and the Four Seasons Hotel Abu Dhabi — which flank the Sowwah Square will provide accommodation and amenities for Sowwah Square's mix of global companies.

"The Abu Dhabi Securities Exchange, which is Sowwah Square's anchor tenant, is nearing completion and will be ready for handover in the latter part of 2011," Wilding said.

He said the continuing strength of the UAE's economy and its increasing position as a regional hub is creating increased demand for commercial and residential real estate throughout the emirates.

Strong fundamentals

"The strong economic fundamentals, coupled with steadfast government support, provide reason for optimism for the future of the Abu Dhabi real estate market," Wilding said.

Although Abu Dhabi is often associated with high real estate prices, it is in fact highly competitive when benchmarked against key international competitors, he added.

Citing Cushman and Wakefield's 2011 Office Space Across the World Report, Wilding said prime office space in Abu Dhabi is less than half the price of that in London and New York and a quarter the price in Hong Kong.

"In the residential market, Abu Dhabi is even more competitive. Knight Frank's recent Wealth Report 2011 showed that London's prime residential real estate averages at more than ten times the price per square metre in Abu Dhabi [$463 compared to $5,232]. According to their data, Hong Kong is more than five times the cost of Abu Dhabi, with both New York and Sydney more than double," Wilding added.

He also said the cost of hotel accommodation in Abu Dhabi when compared to New York, London, Sydney and Hong Kong, comes out the lowest for four- and five-star category hotels.