Villas overlooking the new Yas Acres Golf and Country Club on Yas Island, Abu Dhabi. Khushnum Bhandari / The National
Villas overlooking the new Yas Acres Golf and Country Club on Yas Island, Abu Dhabi. Khushnum Bhandari / The National
Villas overlooking the new Yas Acres Golf and Country Club on Yas Island, Abu Dhabi. Khushnum Bhandari / The National
Villas overlooking the new Yas Acres Golf and Country Club on Yas Island, Abu Dhabi. Khushnum Bhandari / The National

Business

Property

Abu Dhabi property transactions surpass $5.7bn in third quarter

Yas Island recorded transactions worth Dh272m, while Saadiyat Island was also popular among investors

Ian Oxborrow
Ian Oxborrow

November 14, 2022

  • English
  • Arabic

Abu Dhabi's property market recorded 4,441 transactions amounting to $5.7 billion (Dh21.04bn) in the third quarter, showing the sector's strong growth, according to the Department of Municipalities and Transport.

The emirate recorded 1,995 sales worth Dh5.39bn, and 2,446 mortgage transactions worth Dh15.64 billion, as the market continues to recover from the pandemic-induced slowdown.

In comparison, transactions for the third quarter of 2021 reached a total of Dh16.2bn.

“The real estate market in the emirate of Abu Dhabi continues to achieve outstanding results and continuous and sustainable growth,” said Adib Al Afifi, executive director of the Real Estate Sector at DMT.

“By providing more options for investment in the real estate market and increasing the transparency of this vital sector contributes to the strengthening of Abu Dhabi’s global position as one of the most lucrative destinations for real estate investment.”

Yas Island topped the list for highest value of transactions with Dh1 billion ($272 million). It was followed by Saadiyat Island with Dh929m worth of transactions during the period from July to September.

Al Shamkha ranked third with Dh641m, followed by Reem Island with Dh541m, Khalifa City with Dh208m and Mohamed bin Zayed City with Dh182m.

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Abu Dhabi's Reem Hills: phase two of $2.1bn man-made hill community sells out

  • The elevation at the Reem Hills community can be seen in this rendering. All photos: Q Properties
    The elevation at the Reem Hills community can be seen in this rendering. All photos: Q Properties
  • Views across Reem Hills and beyond.
    Views across Reem Hills and beyond.
  • An overhead view of the development. The first phase of the project is due for completion in December 2024.
    An overhead view of the development. The first phase of the project is due for completion in December 2024.
  • The project will come with beach access.
    The project will come with beach access.
  • Parkland will provide a serene setting for residents.
    Parkland will provide a serene setting for residents.
  • Different villa styles have been presented in the renderings.
    Different villa styles have been presented in the renderings.
  • Three-storey villas are in contrast to Reem Island's tall apartment towers.
    Three-storey villas are in contrast to Reem Island's tall apartment towers.
  • The villas are set to be surrounded by greenery.
    The villas are set to be surrounded by greenery.
  • The interiors are filled with natural light.
    The interiors are filled with natural light.
  • Another style of villa.
    Another style of villa.
  • The living areas are spacious.
    The living areas are spacious.
  • The featured interiors are modern and should appeal to a broad section of buyers.
    The featured interiors are modern and should appeal to a broad section of buyers.
  • Private swimming pools are included in the renderings.
    Private swimming pools are included in the renderings.
  • Reem Hills is among a number of villa projects announced in Abu Dhabi this year.
    Reem Hills is among a number of villa projects announced in Abu Dhabi this year.
  • Reem Island is a popular location for Abu Dhabi residents and is considered a good area in which to buy and rent.
    Reem Island is a popular location for Abu Dhabi residents and is considered a good area in which to buy and rent.
  • Pathways and grass should provide a pleasant experience for residents.
    Pathways and grass should provide a pleasant experience for residents.
  • There is currently only one villa development on Reem Island.
    There is currently only one villa development on Reem Island.
  • The villa will provide room for all the family.
    The villa will provide room for all the family.

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The UAE economy, which rebounded strongly from the pandemic-induced slowdown last year, has picked up pace this year. The Arab world's second-largest economy is set to expand by 5.4 per cent this year, according to the UAE Central Bank.

Business activity in the UAE’s non-oil private sector economy continued to improve in October as new business and output climbed, along with a rise in demand and employment.

The seasonally adjusted S&P Global purchasing managers’ index climbed to 56.6 in October, up from 56.1 in September. A reading above the neutral level of 50 indicates growth, while one below it points to a contraction.

DMT said in July that Abu Dhabi recorded 7,474 property transactions worth more than Dh22.51bn in the first six months of the year.

Major property projects have been launched in the capital this year, including Aldar Properties' Saadiyat Lagoons, Yas Park Gate and Grove District on Saadiyat Island.

Other projects include Reem Hills on Reem Island, Bloom Living, close to Abu Dhabi International Airport, and the second phase of Imkan's Riviera development on the coast between Abu Dhabi and Dubai.

While you're here
WHAT FANS WILL LOVE ABOUT RUSSIA

FANS WILL LOVE
Uber is ridiculously cheap and, as Diego Saez discovered, mush safer. A 45-minute taxi from Pulova airport to Saint Petersburg’s Nevsky Prospect can cost as little as 500 roubles (Dh30).

FANS WILL LOATHE
Uber policy in Russia is that they can start the fare as soon as they arrive at the pick-up point — and oftentimes they start it even before arriving, or worse never arrive yet charge you anyway.

FANS WILL LOVE
It’s amazing how active Russians are on social media and your accounts will surge should you post while in the country. Throw in a few Cyrillic hashtags and watch your account numbers rocket.

FANS WILL LOATHE
With cold soups, bland dumplings and dried fish, Russian cuisine is not to everybody’s tastebuds.  Fortunately, there are plenty Georgian restaurants to choose from, which are both excellent and economical.

FANS WILL LOVE
The World Cup will take place during St Petersburg's White Nights Festival, which means perpetual daylight in a city that genuinely never sleeps. (Think toddlers walking the streets with their grandmothers at 4am.)

FANS WILL LOATHE
The walk from Krestovsky Ostrov metro station to Saint Petersburg Arena on a rainy day makes you wonder why some of the $1.7 billion was not spent on a weather-protected walkway.

Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.

The biog

Family: He is the youngest of five brothers, of whom two are dentists. 

Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.

Where he works: Liberty Dental Clinic 

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Day 2, stumps

Pakistan 482

Australia 30/0 (13 ov)

Australia trail by 452 runs with 10 wickets remaining in the innings

Updated: November 14, 2022, 9:45 AM
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