Al Muneera, Al Raha Beach. Courtesy of Better Homes

Dh105,000

Annual rent for a two-bedroom apartment in Al Muneera, Al Raha Beach, Abu Dhabi

Features

The apartment is located on the sixth floor and offers great views of the sea and canals; there is wood flooring throughout, as well as fitted kitchen appliances and built-in wardrobes in each bedroom

Pros

Rates are negotiable and you can pay in four cheques, easy access to Sheikh Khalifa Highway, underground parking and an on-site Spinneys

Cons

This is a relatively new development so there may be teething problems. More shops, cafes and gyms are on the way, but not yet in place

They say Al Muneera brings to Abu Dhabi a standard of living that is unmatched anywhere else in the city. More info

United Eastern Medical (UEMedical), an Abu Dhabi healthcare company, held a ‘HealthPlus Family Day’ on January 28 to celebrate the recent opening of their new family health centre in Al Bandar on Al Raha Beach.

Talal Al Dhiyebi, Director of Planning & Infrastructure, Aldar Properties, with a family at the HealthPlus Family Day on Saturday January 28.

The HealthPlus Family Day saw free health checkups, games, bouncing castle and magic shows for children and families.  HealthPlus physicians also offered advice on general medicine and dental patient care.

The event was attended by Talal Al Dhiyebi, Director of Planning & Infrastructure, Aldar Properties; Mohammed Ali Al Shorafa Al Hammadi, Managing Director & CEO of UEMedical; Majd Abu Zant, CEO of Health Plus; and members of UEMedical’s management team.

The Al Bandar Residential Community is one of Al Raha Beach projects of Al Dar Development. More info

ABU DHABI – Residential rents in Abu Dhabi may face downward pressure in 2012 following the completion of delayed projects in the city, adding to the number of homes on the market, a report sid on Tuesday.

Asteco Property Management in its second-half report for 2011 said the emirate’s residential property sector stabilised in the fourth quarter as project handover delays limited the delivery of new supply. Leasing activity, up significantly this year from 2010, is expected to remain strong next year.

“Following a sustained period of rental declines, we have seen some stabilisation over the last three months, particularly at the top end of the market due in part to a slowdown in transactional activity,” said Elaine Jones, chief executive of Asteco Property Management, said in an e-mailed statement to Khaleej Times.

She said some tenants chose to renew leases in existing premises at lower rents and wait for new projects to become available.

The Asteco report said Abu Dhabi rental rates are expected to fall further next year, with more than 24,700 new homes scheduled for completion.

Of the new homes, 18,800 are apartments and 5,950 are villas, the report said adding that about 12,000 units are expected for completion in the first half of the year. New deliveries in 2012 include the first residences on Saadiyat Island, as well as additional projects on Reem Island and Raha Beach.

According to Asteco, 6,680 apartments and 3,600 villas will be handed over this year, far below forecasts due to the continued handover delays within the major projects.

“The delay in handover this year will only exacerbate the volume of new supply delivered in 2012, and consequently, rents will again come under further downward pressure,” Jones remarked.

The Asteco report said Abu Dhabi’s residential property sector stabilised in the fourth quarter as project handover delays limited the delivery of new supply. “Apartment and villa rents were broadly unchanged in the fourth quarter of 2011 compared to the previous quarter,” it added. More info

Rolls-Royce, the global power systems company, has opened a new office in Abu Dhabi to further enhance its growing activities in the emirate and the wider region, said a press statement on Monday.

The office, located in the new “HQ” building, developed by Aldar Properties, will become home to all Rolls-Royce employees in Abu Dhabi.

Rob Watson, Rolls-Royce, Regional Director – Middle East, said: “This is an exciting time and an important milestone in the continuing development of our business in the UAE. Rolls-Royce has a long and proud history of serving customers across the Middle East for over 75 years and this new office in Abu Dhabi demonstrates the strength of our commitment here for the long-term. Expanding our presence will enable us to work more closely with our customers and stakeholders in this important market.”

The Rolls-Royce Abu Dhabi office will be an important platform for the Group’s education initiatives to promote science and technology to Emiratis. In line with the Abu Dhabi Economic Vision 2030, these initiatives will help encourage national workforce participation and employability and increase labour productivity in line with international benchmarks. More info

Aldar Properties, the developer behind some of Abu Dhabi’s most eye-catching projects, yesterday posted its third straight profitable quarter since the company’s debt was restructured in January.

Al Zeina

Net profit for the third quarter was Dh144 million (US$39.2m), compared with a loss of Dh731.2m in the same period a year ago, as the company continued handovers of homes in Raha Beach.

Revenue for the quarter jumped to Dh3.13 billion, compared with Dh505.3m the same period a year ago, the company reported.

The company’s quarterly results includeDh2.7bn from the sale of land on Yas Island to the Abu Dhabi Government, part of the January funding plan.

The company also said it was able to raise Dh734.6m in bank borrowings, “demonstrating continued access to funding markets”.

“This period has seen good progress in areas of strategic importance to the business,” said Ali Eid Al Mheiri, the chairman of Aldar Properties.

Aldar cut 105 employees, 24 per cent of its staff, as part of a corporate restructuring last week. The company, which developed Ferrari World and Raha Beach, said it would cut back on development plans and focus more on property and asset management.

The results for the third quarter highlighted many of the key areas for Aldar as it reshapes the company.

Rental income from offices and retail space increased to Dh537.3m for the first nine months of the year compared with Dh269.8m last year. And the company’s schools and hotels business generated Dh368.6m for the three quarters this year compared with Dh247.6m in the same period a year earlier. More info

Abu Dhabi: Abu Dhabi’s largest real estate developer Aldar Properties’ chief executive officer has said that 1,220 units have been completed this year at the Al Raha Beach development and another 800 units will be completed by the end of this month.

Al Bandar

“A total of 116 showrooms have been completed in Motor City and tenants are moving in soon,” Sami Asad told delegates at a MEED conference in the capital.

Asad said that Aldar is working on the Yas Mall on Yas Island and that work will be completed in 2013. The Yas Island water park project is due for completion in 2012, he added.

On October 31, Aldar Properties said changing market conditions had provoked the layoff of 24 per cent of its workforce.

In January, the emirate’s biggest developer, agreed to sell real estate assets including a Ferrari theme park and convertible bonds to the government for Dh19.2 billion to reduce its debt. More info

Apartment hunters with a taste for luxury will soon find a tantalising array of five-star rental options coming on to the market on Abu Dhabi island.

Several towers are scheduled to open on or near the Corniche in the next few months, offering more than 1,400 apartments with rooftop pools, health clubs and all the modern amenities. For the first time, the capital will have the type of high-end apartment towers common in Dubai.

“I see a lot of people moving back from Dubai because we have the quality now,” says Almer Agmyren, the managing director of Rex Real Estate. “There really hasn’t been the quality in Abu Dhabi.”

The list of nearly completed projects includes Etihad Towers, the collection of five blocks near the Emirates Palace hotel. There is also the 47-storey Seba Tower, now known as Al Ain Tower and commonly known as the “wobbly building”, near Spinneys market, and Nation Towers, which is next to the Hilton Corniche.

“These three will be setting the ceiling for the market,” says Paul Maisfield, the general manager of the Abu Dhabi office for Asteco,a property management company. “All three are competing for the high-end market.”

Prospective tenants have been told the first of the 885 apartments in Etihad Towers will be available on October 15. The project involves three towers ranging from 55 to 75 storeys.

Annual rents in the Etihad Towers apartments range from a low of Dh100,000 (US$27,227) for a 67-square metre one bedroom to Dh972,000 for a 732-sqmetre penthouse. A two-bedroom, 160-sq metre apartment is listed at about Dh225,000.

Al Ain Tower, which is expected to offer similar pricing, is also scheduled to open by the end of October, agents have been told. Nation Towers is likely to open in the spring.

The new apartments, along with the recently opened Capital Plaza near the Sheraton Corniche, are already popular with home hunters.

“Anything on the Corniche is literally like a jewel in the crown,” says Steve Morgan, the head of the UAE office for the property consultancy Cluttons. “They are filling a niche in the marketplace for people who can afford it.”

People looking to rent who are willing to pay for top-of-the-line luxury have few options in Abu Dhabi.

A 7,500-sq foot penthouse with a wide terrace in Al Bandar on Raha Beach is currently listed for Dh600,000 a year. On the main island, a 10,700-sq ft penthouse in Khalidiya is available for Dh800,000 a year.

But the new towers will add variety and depth to the menu of choices in the city, offering a lifestyle “not really offered yet in Abu Dhabi”, Mr Maisfield said. The projects include the types of pools, saunas, health clubs and restaurants with spectacular views that are still a rarity in central Abu Dhabi.

“They have the amenities and the location,” says Eduarda Silveira, a consultant with the estate agency Better Homes.

The new choices could put further pressure on already falling rents around the island. The average rent for a two-bedroom apartment is down more than 40 per cent since the peak in 2008, according to Jones Lang LaSalle data.

Most analysts expect rents to continue to fall in the next year as more projects come on to the market.

“They will definitely have a knock-on effect,” says Mr Maisfield. “If it does get competitive, there will have to be an impact on the rest of the market.”

Asteco has also said that new projects are “leading to a significant rise in leasing enquiries, predominantly from existing residents looking for better value for money and upgrades”.

The new towers on the Corniche are coming on to the market at the same time as thousands of apartments are being completed on Reem Island and Raha Beach. Jones Lang LaSalle predicts that 16,000 new homes will be completed in Abu Dhabi this year.

But some experts doubt the Corniche towers will draw people away from the off-island developments.

“It’s a totally different product,” says Ms Silveira.

Reem and Raha developments are attracting younger renters and people looking for an easy commute to Dubai, she said. The Corniche projects will probably attract older renters and families that want more of a city lifestyle.

But annual rents of more than Dh150,000 for a two-bedroom apartment will put off many people. At that price, they have the option of paying less to lease a villa, which is the preferred option for many families. Two-bedroom villas in Abu Dhabi rent for about Dh110,000 a year, according to Asteco’s latest research report.

But the new towers on the Corniche will make home hunters think twice about their current apartments. Managers of older buildings may find it difficult to keep current tenants, unless they lower rent and upgrade their services.

“We will see a flight to quality,” says Mr Agmyren.

kbrass@thenational.ae

Rents in Abu Dhabi fell by 10 per cent in the second quarter as supply continued to outweigh demand amidst expectations that this phenomenon will prevail for the rest of the year whereby up to 14, 000 residential units, primarily high end, will be handed over in Abu Dhabi by the end of 2011.

With regard to office supply, there is an oversupply. The total oversupply of office space in Abu Dhabi is expanding, but it is important to note that only 11 per cent of the current stock qualifies as international Grade A quality..

Several large scale office projects are expected to be delivered this year, including more buildings at Sowwah Square, Capital Plaza, Etihad Towers, International Towers, The Sky and Sun Towers, Infinity Tower, the Guardian Towers, the Capital Towers, the Marina Square, Al Bustan Complex, AL Muneera and Al Zeina projects, Yas Island Villas and Saadiyat Beach. As for office supply, Tower One at Sowwah Square and Guardian Tower at Danet Abu Dhabi.

The Al Raha Beach development, which is being completed and delivered in phases, will accommodate 120,000 residents. Aldar will also hand over Al Noor Tower, an office tower in Al Muneera during the second half of 2011.

Aldar’s portfolio of projects in Abu Dhabi is valued at more than $75 billion, (Dh275.4 billion).

Moreover, Aldar announced in July, 2011 that its 278m, 59 storey Trust Tower, one of the tallest office developments in the capital and the centerpiece of the capital’s downtown district is available for pre-lease.

The Emporium Shopping Mall will be completed in the third quarter of 2012 and the residential Domain Tower, home to 274 residential units will be finished in 2012, according to Aldar statement.

The Strata Tower will be the tallest building in Al Dana precinct once completed in 2011. The tower’s height is 160 meter high, and the Strata Tower will be the tallest building in the Al Dana precinct.

The whole Saadiyat Island Projects estimated cost would amount up to $27 billion (Dh97.2). It houses two hotels: The St Regis Saadiyat Island Resort and the AED 1 billion Park Hyatt Abu Dhabi. Both are expected to be completed by the end of 2011.

The Rocco Forte Abu Dhabi development, a joint venture between TDIC and Al Farida Investments Company LLC, is the brand’s first venture into the Middle East. It is located on Sheikh Rashid bin Saeed Al Makhtoum Street.

The Regent Emirates Pearl is a joint venture between TDIC and Atlas Group. The expected cost of the resort will be AED 500 million. The tower will stand 255 tall with 47 floors. It is expected to be finished in 2012, according to TDIC estimations.

Capital Gates distinctive futuristic design, aesthetic splendor and technical excellence made it a modern marvel and a celebration of human achievement that reflects dynamism of Abu Dhabi..

Investment bank Rasmala reckons a 20 per cent downside potential to property prices in Dubai, estimating that an additional 35,000 homes will be delivered in the emirate between 2011 and 2013 – boosting the existing housing stock of an estimated 330,000 units by about 10 per cent.

“We believe the Dubai residential market may see delivery of 30,000-35,000 units of apartments and villas combined between 2011 and 2013, upon an existing supply base of roughly 330,000 units. This translates into roughly 10 per cent incremental supply over three years, which we believe will further depress real state asset values,” the bank said today in a report on the UAE’s real estate market.

“Our house view remains that Dubai residential sales may bottom out at Dh600-650 per sq ft, hence current price levels of Dh750 per sq ft imply an additional 15-20 per cent downside potential to property prices,” it added.

On the other hand, analysts at the investment bank maintain that Abu Dhabi, which will see more houses entering the market than Dubai, will see at least a 20 per cent drop in residential prices. “We expect Abu Dhabi to lag Dubai by about nine to 12 months on the property clock, and we estimate approximately 40,000 units will be delivered there between 2011 and 2013 on an existing install base of roughly 200,000 units, hence 20 per cent incremental supply over three years,” the report said.

“Although we believe Abu Dhabi will retain a certain premium over Dubai in terms of rents and house prices, both emirates markets are largely correlated in our view, given a similarity in demographics (80 per cent-plus expat community), marginal mortgage financing, substitution effect and meaningful supply-demand mismatches between 2011 and 2013. We expect Abu Dhabi to experience at least 20 per cent declines in residential values from current levels of roughly Dh1,000 per sq ft prior to reaching a sustainable trough,” it said.

Rasmala, nevertheless, sees a number of long-term positives for the UAE’s property market, including the receding impact of the Arab Spring on property investments, as well as the affirmative effect of new property visa rules in the country.

“In addition to regional risk subsiding, for UAE specifically visa law changes may have marginal benefits in the near term and potentially greater benefits in the long run,” the Rasmala report said.

“Increasing UAE residency visa tenures from six months to three years for real estate investors is likely a positive development for the sector and, in our view, supports broader confidence. However, a direct tangible impact on property prices is difficult to estimate in the foreseeable future. We believe current property transactions are primarily driven by supply-demand dynamics and associated risk-rewards, while visa implications are more secondary catalysts.”

The investment bank has therefore upgraded regional property benchmark Emaar Properties to a Buy and reiterated Drake and Scull International as a Buy while keeping Aldar, Sorouh and Arabtec as Holds. “We believe the regional risk profile and investor sentiment is gradually turning positive, so we reduce our risk premium forecasts across the board as we ease through the uncertain Arab uprising phase.”

Aldar Properties said on Monday that hand-over to homeowners has commenced at the beachfront Al Zeina residential development in its Al Raha Beach project.

“Delivery of the first phase of the development which consists of three precincts… began last week, with the remaining homes scheduled for delivery this September,” Aldar said in a statement.

Al Zeina is the first beachfront residential development in Abu Dhabi available for purchase by national and international buyers and follows the delivery of the neighbouring Al Bandar community last September.

It includes apartments, penthouses and a range of townhouses and villas, some with private courtyards and pools.

“Al Zeina’s quality and location and competitive pricing mean that it has been popular among current residents of Abu Dhabi who are renting but looking to buy, those who are interested in owning a property at a beach development as well as individuals who are looking for a luxury unit,” said Mohammad Al Za’abi, Director of Estates at Aldar.

Yas Hotel management

Meanwhile, Aldar Properties has appointed the Viceroy Hotel Group to operate the Yas Hotel, marking the Abu Dhabi developer’s exit from hotel management.

The Yas Hotel, which overlooks the Formula One circuit on Yas Island, was the last of the eight hotels owned by Aldar it still operated.

The Yas property will be the first hotel managed outside the Americas by the US-based Viceroy, which is 50 per cent owned by Mubadala Dev-elopment, a strategic investment company owned by the Abu Dhabi Government.

Viceroy is also slated to operate a 250-room hotel, the Viceroy Abu Dhabi, planned for Sowwah Island, the new financial district developed by Mubadala.

Aldar reported a Dh189.1 million net profit for the first quarter of 2011, compared to a Dh314.2 million net loss in the corresponding period last year.

Aldar’s Chief Executive Officer Sami Assad said in May the company will deliver over 2,500 residential units this year at its Al Muneera and Al Zeina developments on the Al Raha Beach project, besides 150 showrooms at Motor World, and one commercial tower at Al Muneera.

Aldar’s portfolio of projects in the emirate of Abu Dhabi is valued at more than $75 billion with the entire portfolio slated to be completed and delivered in this decade.

“It’s important to see more meaningful government-related projects being awarded to Aldar to validate its key role in the development of Abu Dhabi,” Anastasios Dalgiannakis, Head of Trading at Mubasher Financial Services, told Gulf News.

The stock of Aldar on the Abu Dhabi Securities Exchange fell 2.34 per cent yesterday in a declining market to close at Dh1.25.