Island getaway

In what is possibly a snub to Dubai's man-made islands, Al Reem Island's developers term the project "the first of its kind to be executed on a natural development." Richard Kay, commercial director, Harbor Real Estate, says, "Al Reem is the only development in the UAE which is a natural island incorporating a mega project on its land mass. It is proving that not all projects have to be man-made creations and it is possible to use the UAE's natural, beautiful coastline."

Divided into various smaller projects including Pearl Of The Emirates, Tameer Towers, Gate District and City Of Lights, Al Reem Island will be an all-in-one destination. "There will be no need to leave the island," says Richard. "Everything you could possibly need will be right on your doorstep."

The developers of Al Reem (Arabic for the deer) announced last month that the project's infrastructure development was on schedule, with the majority of Phase One's works forecasted to be completed by March 31, 2010. "Over 50% of Phase One's regional roads and utility infrastructure development, which began in February 2008, is complete," says Tariq Sultan, CEO of Bunya, the management authority that oversees the infrastructure and utilities on Reem Island. Bunya was created in 2005 by the three master developers of Reem Island: Sorouh Real Estate PJSC, Tamouh Investments LLC and Reem Investments, and it acts as the island's municipality.Bunya also announced that storm water, irrigation, sewerage and air conditioning infrastructure, as well as telecommunications and garbage collection services, will be operational by March 2010. "Eighty five per cent of road embankments, 75% of the sewerage pipeline network and 65% of the storm water network is complete. Electricity will be available from June 2009," Tariq says.

Al Reem Island's sewerage treatment plant will feature water processes based on biological nutrient removal, and treatment to reduce the total dissolved solids in order to produce an effluent that can be recycled within the island's district cooling plants.

"Of the $30 billion (Dh111 billion) worth of the total development, approximately $700 million (Dh2.57 billion) has been allocated to the construction of roads, bridges and utilities," says Richard.

Upon completion, Al Reem Island will be one of the largest master developments in the capital, and will have a capacity to accommodate over 200,000 residents and all the facilities and services necessary to be termed a self-contained community. Bunya projects that the island will eventually have seven schools, four hospitals, ten mosques, two post offices, two police stations, 56 hectares of park and beach land and the Paris Sorbonne University.

Of the island's 854 hectares, Tamouh is developing 60% of the area, Sorouh 20% and Reem Investments 20%, while infrastructure and facilities will all be managed by Bunya.

Richard explains the break-up in greater depth. "The Phase One flagship project of Tamouh is Marina Square [to be delivered later this year], with additional phases including Marina Cove and the City Of Lights development. Sorouh's Shams Abu Dhabi will be a mini city within the island and will feature its landmark Sky Tower.

"Reem Investments is not developing the land directly. The developer is instead selling off individual land plots for which they are providing the infrastructure."

Freehold properties on Al Reem Island will include Spanish and Moroccan styled villas and apartments.

In terms of commercial space, the development will have office towers as well as retail, leisure and entertainment facilities such as shopping malls, music centres, theatres, art halls and restaurants.

The island is currently connected to the Abu Dhabi coast by land bridges from Salaam Street. Four additional bridges are under construction to connect Al Reem with Falah Street and the Abu Dhabi Mall through Suwwah Island. Closer to completion, more bridges will link Al Reem Island to Abu Dhabi Island and other adjacent developments. A light rail system is also planned, which will run throughout the island and will be fully integrated with Abu Dhabi's public transport network via a metro rail system.

Although close to 80% of the project is already sold out, there are still a number of villas and apartments for sale, notes Richard. Al Reem has seen a substantial drop by almost 50% in the price per ft²."Buyers and investors should make use of this period to snap up the tremendous deals that are on offer," says Richard. He explains that at the peak of summer 2008, residential property in Al Reem Island fetched Dh2,100/ft². Today, that has fallen to about Dh1,100/ft². Regardless of this, Richard says that works haven't been affected by the financial crisis.

"As with any project of this magnitude, some short-terms delays are to be expected. While there has been recent speculation that some of the projects on Al Reem have been delayed or put on hold, our understanding is that construction contracts are being reviewed for renegotiation purposes."

Although there has been a dip in market confidence in the UAE, Richard says his company, which sells properties on Al Reem Island, hasn't witnessed any distressed sales of properties in the development.

"We're finding that investors are currently looking to retain their property on Al Reem Island as it's a unique development that can't be replicated, again due to its proximity to the city and its natural make-up."