Abu Dhabi Property Watch_Q4 2014

8/9/2019 Abu Dhabi Property Watch_Q4 2014

1/9

ISSUE8

JANUARY

2015

Abu Dhabi Property Watch

Whats Inside?

# Key Highlights: Q4-2014

# Apartment Sales & Rental Prices: Q4-2014

# Villa Sales and Rental Prices: Q4-2014

# Office Rental Prices: Q4-2014

# Featured Project: Ansam

Abu Dhabi Property Watch, a report pub-lished every quarter, intends to provide itsreaders with vital real estate market intelli-gence about Abu Dhabi through latesttrends and analyses.


2/9

PROPERTY VALUATIONS l PLANT & MACHINERY VALUATIONS l PROPERTY SURVEYS l MARKET RESEARCH l INVESTMENT ADVISORY

For f u r ther i n fo rma t i on, p l ea se conta ct 043 808 707 www. la nds te r l ing .com | 0 2


ISSUE8

JAN

2015

Despite that the capitals economy is more robust owing to the several government backed investment programs, Abu Dhabi remained

wary about initiating new developments lest it should hamper the stability achieved post recession. Compared to its ostentatious neigh-

bor, Abu Dhabi was slow to join the off plan bandwagon as the city was bogged down by varying degrees of oversupply conditions till2013 in all the sectors residential, commercial and hospitality sector.

The year 2014 was warm up period for Abu Dhabi developers who teased investors palette with a few off plan projects to assess the mar-

kets appetite. Sell-out success for all newly launched projects proved the existence of latent demand helping to pave the ground for

bolder moves in the coming year. Aldar has already revealed its intent of new launches over the next few months. Other developers may

follow suit.

Though transaction activity for secondary properties slackened during H2 2014 resulting in softening of sales prices, the market is upbeat

for more off plan projects in Abu Dhabi.

Abu Dhabis inflation for December 2014 rose to 4.1% compared with the same month in 2013. Housing cost increased 5.8% and the

cost of water, electricity, gas and other fuels rose 6.7%. The new water and electricty tariffs which become applicable in Abu Dhabi

starting January 2015 are expected to push up the inflation further in the coming months. EIU expects inflation to peak at 5% within the

next year or so.

In October 2014, Standard & Poors affirmed that it maintains Abu Dhabis rating for long term debt at AA and short term debt at A-1+

despite of the falling oil prices.

In December 2014, a recent study by Timetrics Construction Intelligence Center (CIC) revealed that Abu Dhabi tops the list of 50 con-

struction mega cities, each having a project pipeline over AED 40 billion. Abu Dhabi projects are valued at AED 1.76 trillion ahead of

London (AED 1.75 trn) and Dubai (AED 1.28 trn).

Department of Economic Development (DED) Abu Dhabi has projected an average GDP growth rate of 5.5% and inflation of 3.1% for

the period 2014 18.

KEY HIGHLIGHTS


3/9

PROPERTY VALUATIONS l PLANT & MACHINERY VALUATIONS l PROPERTY SURVEYS l MARKET RESEARCH l INVESTMENT ADVISORYFor f u r th er i n fo rma t i on, p l ea se cont act 043 808 707 www. l ands te r l in g.com | 0 3


ResidentialSales Market

Sales price for apartments and villa remained flat in Q4 2014

across all investment areas. Among the villas, Al Ghadeer

witnessed the maximum decline at 9%. The price recovery that

kick started by rent cap removal and accelerated by new

projects launched by Aldar in early 2014 has lost most of its steam.

For apartments, Al Raha Beach communities did well in terms of

year-on-year gains with Al Muneera, Al Bandar and Al Zeina

witnessing price appreciation of 19%, 16% and 10% respectively.

For villas, Al Muneera and Al Raha Gardens prices increased 33%

and 22% year-on-year in Q4 2014 down from 38% and 35% in Q3

2014.

In October 2014, Manazel announced a new phase of Al Reef

Villa development that will add 860 new homes to the master

community. With a starting price tag of AED 1.7 million, the new

phase will include 2-and 3-Bedroom detached villas.

In October 2014, Aldar announced its plan to launch new projects

targeting mid-income buyers and tenants in the short term.

Apartments and Villas

Al Muneera*

Al Zeina*

Al Ghadeer

Al Raha Gardens

Al Reef

Saadiyat Island

Al Muneera*

Al Bandar*

Al Zeina*

Al Reef Downtown

Al Ghadeer

Al Reem Island

1,550

1,805

1,480

1,040

890

1,440

1,200

1,300

1,015

830

1,100

1,650

AVERAGE PRICE

AVERAGE PRICE

*Al Raha Beach communities% Change Q4-14 vs Q3-14

*Al Raha Beach communities% Change Q4-14 vs Q3-14

Average Apartment Sales Price (in AED per square foot)

Average Villa Sales Price (in AED per square foot)

Source: Land Sterling


ISSUE8

JAN

2015

1

-3%

0%

-3%

0%

1%

-3%

0 500 1000 1500 2000

0%

0%

2%

0%

-1%

1%

0 500 1000 1500 2000

9%

8%

-3%

-6%

10%

3%


4/9


For f u r ther i n fo rma t i on, p l ea se cont act 043 808 707 www. l ands te r l ing .com | 0 4


ResidentialRental Market

Quarter-on-quarter rentals for apartments and villas were

stable and witnessed no or little movement in the range of 0

5% in either direction.

In terms of year-on-year growth, apartment rentals fared

better than villas which saw most yearly gains being erased in

Q4 2014.

Leasing activity remained strong during the quarter as the

Shams Gate and Arc tower projects were fully leased outwithin a year of its handover. Similarly, Aldars Al Rayanna

community was also fully leased after six months of handover.

The rise in the cost of living in Abu Dhabi is expected to signifi-

cantly affect tenancy decisions in the near term with tenants

opting for secondary locations. Additionally, the recent deci-

sion to increase utilities tariff, starting from January 2015, in

Abu Dhabi will further stretch the budget of the mid-income

tenants.

Apartments and Villas

% Change Q4-14 vs Q3-14 *Al Raha Beach communities

Areas1 BD 2 BD 3 BD


Average Annual Villa Rent (in AED)

ISSUE8

JAN

2015

Q4-2014

Al Muneera* 105,000 -5% 150,000 0% 184,000 -1%

Al Bandar* 133,000 -1% 174,000 -1% 250,000 4%

Al Zeina* 105,000 5% 155,000 -1% 200,000 0%

Q4-2014 Q4-2014

Al Ghadeer 55,000 75,000

Al Reef Downtown 76,000 1% 91,000 1% 115,000 5%

Al Reem Island 90,000 -1% 138,000 3% 180,000 3%

Saadiyat Beach 110,000 -4% 175,000 0% 197,000 -2%Muroor 95,000 -3% 95,000 -17% 135,000 -10%

Tourist Club Area 80,000 -8% 100,000 -9% 135,000 0%

Khalidiya 80,000 0% 100,000 -17% 110,000 -8%

MBZ City 48,000 14% 70,000 0% 100,000 -9%

Areas1 BD 2 BD 3 BD

Average Annual Apartment Rent (in AED)

Q4-2014 Q4-2014 Q4-2014

Al Muneera* 310,000 3%

Al Zeina* 225,000 -2% 251,000 -3%

Al Ghadeer 135,000 140,000

Al Reef 134,000 2% 160,000 0% 180,000 -1%

Al Raha Gardens 185,000 -3% 221,000 0% 280,000 -2%

Saadiyat Island 310,000 -5% 350,000 3%

Areas3 BD 4 BD 5BD

Average Annual Villa Rent (in AED)


5/9

PROPERTY VALUATIONS l PLANT & MACHINERY VALUATIONS l PROPERTY SURVEYS l MARKET RESEARCH l INVESTMENT ADVISORYFo r f u r t h er i n f o rma t i o n, p l ea se co n t a ct 043 808 707 www. l a n d s t e r l in g .co m | 05


OfficeAnd RetailMarket

Prime office space continues to command premium priceowing to its limited availability, with Al Nahyan Camp and

Tourist Club area realizing a year-on-year growth 44% and

35% respectively.

Secondary locations witnessed a modest quarterly rise in Q4

2014 indicating that a portion of office demand is being

spilled over to non prime buildings due to non availability in

the prime segment.

In December 2014, Abu Dhabi Municipality floated tender for

phase 2 - communal souk project in Abu Dhabi. The project

which includes the development of 12 communal souks

within residential districts and suburbs of Abu Dhabi is a part

of the new community planning standards made obligatory

by Abu Dhabi Urban Planning Council which requires all

master planners, developers and government agencies to

provide residents with necessary community facilities.

Currently at final concept design stage, the two millionsquare feet Reem Mall will start construction in 2015 and is

expected to open in 2018. To be located on Al Reem Island,

the mall will include 450 stores and 85 restaurants.

% Change Q4-14 vs Q3-14 *excludes service charges

ISSUE8

JAN

2015

Average Annual Office Rent (in AED per square meter)

Q4-2014

Al Khalidiya 1,300 -10% 1,050 11%

Al Nahyan Camp 1,300 0% 920 8%

East Corniche 1,400 0% - -

City Centre 1,550 -7% 1,000 15%

Corniche 1,600 -7% - -Muroor 1,250 4% 1,000 11%

Tourist Club 1,350 -4% 1,020 7%

Off Island

ADNEC Area

Aldar HQ (Al Raha Beach)

Al Sowwa Island

Q4-2014

1,650

2,000

2,300

-3%

11%

7%

Areas (City)High Rise* Low Rise

High Rise*



6/9


For f u r th er i n fo rmat i on, p l ease cont act 043 808 707 www. l ands t er l in g.com | 0 6


ISSUE

8

JAN2

015

Launched in June 2014, Phase 1 of Ansam is located on the

west side of Yas Island and north-east of Yas Links Golf

Course.

It will include studios, one, two and three-bedroom apart-

ments and will comprise a total of 540 units.

Spread over 12 andulasian style buildings, the buildings will

be 6-8 stoorey high. The complex will offer amenities likeswimming pool, gymnasium and a multi-purpose hall.

Featured Project : ANSAM

Project Details

Aldar launched its first sales event in June 2014 when more

than 300 units were sold.

The project is scheduled to be completed in April 2017.

Construction Update

Project Name:

Ansam

Project Type:

Apartments

Master Developer:

Aldar

Image Source: Aldar Website


7/9




ISSUE8

JAN

2015

Property Types: APARTMENTS

Unit Types BUA (in sq. ft) No. of Units

Studio

Type A 493.21 10

Type B 558.22 2

Type C 624.31 8

1-Bedroom

Type A 886.85 28

Type B 896 2

Type C 900.3 2

2-BedroomType A 1713.84 8

Type B 1471.98 15

Type C 1366.38 29

Type D 1246.47 12

Type E 1278.01 10

3-Bedroom

Type A 2200.16 8

Type B 232.84 16

Type C 2444.07 2

Type D 2744.6 2Type E 2993.68 2

Type F 2343 1


Studio

Type A 544.87 16

Type B 568.45 5

1-Bedroom

Type A 881.57 22

Type B 951.65 1

Type C 875.11 5

2-Bedroom

Type A 1529.03 7Type B 1636.67 15

Type C 1408.25 21

Type D 1461.97 1

Type E 1274.57 1

Type F 1259.49 1

Type G 1347.22 1

Type H 1477.36 1

3-Bedroom

Type A 2178.31 8

Type B 2214.91 4Type C 1982.08 4

Type D 4198.71 2

Type E 2795.2 2

Type F 2737.39 2


Studio

Type A 547.35 28

Type B 574.69 10

1-Bedroom

Type A 860.79 37

Type B 1276.72 2

2-Bedroom

Type A 1565.41 10

Type B 1651.2 2Type C 1399.64 2

Type D 1391.35 2

Type E 1296.09 18

Type F 1298.14 7

Type G 1276.29 6

3-Bedroom

Type A 2177.56 8

Type B 4026.17 2

Type C 2253.12 2

ANSAM 1 ANSAM 2 & 3 ANSAM 4

Source : Aldar

Source : Aldar

Source : Aldar


8/9




ISSUE8

JAN

2015

Project Location: Ansam - Yas Island

Image Source: Ansam Official Brochure

YAS MARINA

CIRCUIT

YAS LINKSGOLF COURSE

YAS MALL

YAS

WATERWORLD

FERRARI

WORLD

LOCATION MAP

Abu Dhabi

Airport

to Abu Dhabi

to Dubai

Yas Island


9/9

www.landsterling.com

Contact Details

Hamza BetraouiBSc (Hons) MRICSManaging Director+971 43 808 [email protected]

Nida RizviAnalyst

Valuations & Research+971 43 808 707

[email protected]

Reach Us On

Dubai . PO Box 390984 United Arab Emirates

Tel: +971 43 808 707 Fax: +971 43808708

Disclaimer: While every effort has been made to ensure the accuracy of the data and other information in this publication, Land Sterling does not offer anywarranty or representation, expressed or implied, to the accuracy or completeness of the information contained herein, and same is submitted subject to errors,omissions, change of price, rental or other conditions. The information, opinions and forecasts set out herein should not be relied upon to replace professionaladvice on specific matters. Land Sterling will not be held liable for any loss occasioned to any person acting, or refraining from acting, based on information inthis publication. All information included in this publication is based on Land Sterlings judgment, as on the date of the publication and is subject to changewithout notice. Land Sterling has no obligation to update, modify, or amend this publication or to otherwise notify a recipient thereof in the event that any

opinion, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Copyright 2014 Land Sterling

Cover Image Source: www.adnec.ae

Documents

Abu Dhabi Property Watch_Q4 2014