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In most property markets around the world – both old and new – the concept of buying off-market properties directly from developers is an appealing one.  This too is the case in Abu Dhabi, but there are circumstances here that make this city unique among emerging markets.

Nowhere else has witnessed the rates of growth we are currently seeing.  It is because of the pace of this growth that new circumstances have arisen whereby buying a property from a previous owner is as appealing (sometimes more so) than if you bought it directly from the developer.

Typically, many properties there are sold literally within minutes of the launch of a new development.  Whilst on many occasions it is a tremendous achievement to secure these properties at this stage (due to the huge levels of demand at launch parties etc), there are other considerations to bear in mind.

Because the increase in property prices can be witnessed on almost a monthly level, you can often find properties that were purchased several months previously from a developer trading at prices much lower than current releases on different floors in the same tower from the same developer.  The owner will have applied a ‘premium’ to his property, and this is passed on transparently to the new buyer.

In some cases – if the property was bought, say, 6 months ago direct from a developer – the savings can be significant.  The original owner has seen a solid capital appreciation on his investment, and is prepared to sell prior to completion.  The property is still very much off-plan as it is 18 months plus from completion (in this example).  Furthermore, it will see yet more growth and greater capital appreciation as it nears completion.  This is good news for those who wish to hold onto their new property and rent it out or live in it.

As a rule, those looking for a “quick flip” need to source properties closer to original launches.  Those looking for a longer term hold will generally find better deals looking at properties that have been on the market for some time.  Prospective investors should not be put off if a property has changed hands a number of times even.  This demonstrates a healthy demand for properties of that nature by that developer.

Lewis Charles Securities, the independent London based stockbroking company, will soon be launching their much anticipated Abu Dhabi Property Fund No.1, providing investors with the opportunity to profit from the UAE’s incredible property market.  Building on the phenominal success of their two previous Eastern European property funds the organisation is keen to captialise on one of the world’s most lucrative markets, especially against the backdrop of other poorly performing economies.

The aim of the fund is to provide investors with an efficient vehicle through which to invest into the area’s property market, and offers the obvious benefits of syndicated investment coupled with the expert investment advice of the Fund Manager and their professional advisors.

At Offshore Properties we have been involved with the Abu Dhabi property market since Non-GCC individuals were allowed to acquire property in 2007.  It is fair to say that it is an extremely difficult and competitive market and almost impossible to access without a physical presence, together with a lot of research.  From our perspective this fund will offer both seasoned and first time investors a clear, well structured route to market, without any of the usual stress and work associated with acquisition and disposal of assets (guiding your way through this market is not easy believe me!).

It is believed that the minimum investment level will be £50,000.  To find out register for the prospectus please contact Sahardid Hussein at sh@lewischarles.com

The estimated demand for hotel rooms in Abu Dhabi by 2012 has been upped by 4 000 to an estimated 25 000, according to the Abu Dhabi Tourism Authority (ADTA).

The rise is the result of the capital’s booming tourism industry, with a predicted 2.7m visitors staying in hotels by 2012.  This is a full 12.5% more than originally predicted in 2004.  The plan for development will see 13 000 new rooms being built over the next five years.

Focus on the tourism sector is an important part of the emirate’s strategy to diversify its economy away from hydrocarbons over the coming years. 

According to the World Tourism Council, the industry was worth $8 trillion in 2007, and is projected to cross the $15 trn threshold in the next decade.  The annual growth in the industry is at 4.4%, with the Middle East region outstripping this at 5.2% annually over the next few years.

According to previous reports, the value of tourism projects in Abu Dhabi crossed the Dhs 305 billion mark at the end of last year.

Mubarak Al Muhairi, ADTA Director General, stated that while revolutionary, the five year plan to implement this is based on the overriding principle of managed growth.

The Executive Council of Abu Dhabi gave the go ahead in a meeting of 17 April for what was described as a “new approach to government”.  It follows months of negotiations with senior officials aimed at reforming everything from healthcare and education to policing and the environment.

Each of the 26 government departments will make public their long term planning strategies over the next two months.  This includes numerous action plans for the next five years.  It is the latest in a series of 110 laws and 75 decrees passed since 2005 that pave the way for sweeping reforms.

Addressing a meeting of Heads of Departments attended by the Crown Prince of Abu Dhabi, Sheikh Mohammed Bin Zayed, Mr. Mohammed Ahmad al Bowardi, Secretary General of the Executive Council, said the departments would adopt “the principle of accountability as a road map towards developing performance”.

“We will monitor delivery and, where necessary, we will intervene with support designed to ensure our government goals are achieved,” said Abdullah al Ahbabi, head of the Council’s performance management division.

The changes introduce the concept of key performance indicators to measure the quality of government services.  It is this approach to the serious side of governance that marks Abu Dhabi apart from its regional competitors, and one of the reasons that Emiratis here believe theirs will be the “best city in the world” by 2030.

There are numerous reasons for saying ‘yes’ to this, though so far the take up in the UK has been slow with sales activity spread on a local and international basis rather than coming purely from UK property speculators. Abu Dhabi’s PR machine, The Abu Dhabi Tourism Authority, was set up in 2004 to promote the Emirate’s image overseas, develop tourism and economic diversification, a campaign which is now beginning to make its presence felt in Europe. We are now seeing London taxi cabs with Abu Dhabi liveries, bill boards and more recently sponsorship of major rallies such as the Race of Champions and Ford. The ADTA’s approach has been far more considered than some of Dubai’s promotional strategies, namely selling as much as possible as quickly as possible, and is committed to developing a world-class up-scale sporting, cultural and leisure destination, aimed at discerning visitors.

Again unlike Dubai, infrastructure has been allowed to develop in line with the property market and strict controls on build density and public spaces as dictated by the 2030 Master Plan (see previous posting) are being enforced. Very recently, Shaikh Mohammed bin Zayed al-Nahyan, Crown Prince of Abu Dhabi has mandated a population reduction in the planned collection of high rise towers in order to achieve a less congested environment demonstrating that Abu Dhabi’s objectives are not simply to create a property boom. All of this should be good news for those looking for a medium to long term or buy to let investment.

Depsite this more measured approach property prices are going through the roof with land in 2007 up by 75%. Furthermore a recent report by HSBC Middle East on Abu Dhabi’s real estate sector quotes a price rise of 18% last year while rental rates jumped to 22%.

Earlier this year, a study of the UAE’s real estate sector by Shuaa Capital and Colliers International highlighted the extremely high level of occupancy in Abu Dhabi, with a projected supply of 1,100 units by the end of [2007] compared to a demand for 21,900 units. The shortfall is reckoned to continue in 2008 when the supply is projected at 24,000 with just 11,000 units scheduled for delivery. It is only by 2009, with 150,000 new units, that supply could catch up with demand.

In a general sense Abu Dhabi’s property market benefits from a unique backdrop of incredible state and developer wealth allowing airlines and iconic superstructures to be created without really needing to rely on market forces. Investing in Abu Dhabi property will undoubtedly become the ‘next big thing’, and is already being picked up by journalists in the overseas property press buoyed by increased presence from the big developers, such as Aldar, at last year’s London property shows. It is likely that further deregulation will boost this interest in late 2008 and so as ever it is the early adopters that will prosper.

The number of tourists heading to Abu Dhabi is expected to reach three million p.a. by 2015. This will mean a 300% rise from the current level of one million in 2007, according to His Highness Khaldoon Mubarak, Chairman of the Abu Dhabi Executive Authority. Speaking at a recent conference in the capital, Mubarak said the emirate’s hotels are currently at 95% occupancy, and in order to meet expected to demand, it is planning to increase the number of hotel rooms to 25,000 by 2015, up from about 9,000 at present. He said Abu Dhabi is focusing on high-end, luxury property and business tourism.

Source: http//:www.ameinfo.com

Buying a property in Bansko or visiting the resort on holiday offers a cheap alternative to more expensive European resorts and if you are purchasing an apartment, provides a viable medium to long term investment vehicle.  So long as you don’t have unrealistic expectations expecting Bansko to have transformed itself from ancient little town to world class ski facility in 5 years, then you will not be disappointed. Those who have already invested or are looking to invest in Bansko should also bare this in mind – look at your investment as a long term strategy.  The town has a long way to go in all sorts of ways and there is a great deal of newly built property on the market.  This means that (as with any emerging market) a resale market is a long way off, in that the market must reach a stage where there is no longer any new stock available and the old stock is desirable enough to purchase.  So if you are thinking about buying rather than just holidaying, this should be a main concern: ‘Will anyone really want to buy my apartment in Bansko in 15 years time should I wish to sell it’.  If you’ve bought the right apartment in the right location then that answer should be yes.

Be realistic – if you are visiting Bansko you are doing so because it is cheap or are making an investment decision based on the fact that it is currently inexpensive and looks set to rise.  Like most things in life there is a reason why it is cheap so expect things to be developing or pretty much undeveloped.  Bansko as we know it today has emerged from an extremely impoverished background and now has great ambitions for the future. Bansko’s relentless expansion and infrastructure improvements may gradually lead to a resort which could make this comparison more realistic.  For example, the nightlife in Bansko is starting to improve dramatically from my first experiences (i.e. one or two bad bars) with the addition of some slick looking new premises, cocktail bars and restaurants.  I’m not suggesting that by the singular addition of a cocktail bar Bansko will transform itself into Mirabel, more that it suggests a nod in the right direction and a desire to improve.  What I’m talking about is a general enthusiasm to raise the standard of service.

For more information on Bansko refer to my previous post which I give my view of the best locations to buy in Bansko. 

Retuning from my recent trip to Abu Dhabi it is impossible not to be overwhelmed by the enormity of construction in the UAE’s largest and richest Emirate.  Abu Dhabi’s property market will without doubt become one of the world’s most talked about locations due to truly incredible resorts, hotels, amenities and infrastructure taking place.

I believe that by the 3rd quarter of 2008 we will start to see a major interest from North Europeans due to a more tangible state of development, media hype and Abu Dhabi’s tourism push (we are already getting hints of this with London Taxi cabs recently sporting Abu Dhabi liveries).  This is reflected in the sales and marketing strategies of the some of the major developer’s out there.  Speaking to Sorouh at Dubai’s Cityscape exhibition in September their marketing push is going to hit the UK and Ireland in January 2008.

I predict that property in Abu Dhabi will be 2008’s late developer with a 2009 to rival Dubai’s previous sales highs.  Check back soon for further posts or find out more here.

Way back when the Bansko Property boom first began there was very little to suggest what might one day be regarded as a good or a bad location due to the fact that much of Bansko was a field.  10 years ago, Bansko was pretty much the same as it was since the turn of century.  Although, we have experienced property prices rise from around €800 per square meter to around €1500 + (for a well located property) in the past 3 – 4 years alone there is, I feel, a distinct advantage to purchasing now.

When developers first began building in Bansko their competition was limited as was their level of specification and design.  I remember spending my first night in Bansko around 4 years ago in nearly complete apartment block close to the Glazne Hotel.  Apart from being extremely cold (it was -20C at night prior to the first winter snows) I was staggered at the lack of thought which had gone into the design, finishes and facilities (i.e.none). Basic things like the stairwells being minuscule and no ski storage were highlights. My point is that as competition among developers increased they had to keep raising the bar in order to attract an increasingly discerning audience.  All of a sudden spa facilities were considered essential and location began to matter as build density increased.

Buyers looking to purchase now are paying a much higher price than they would have done 4 years ago, but they will almost certainly receive a better product – in fact they will get better value for money.  The developments on offer today not only have genuine 5 start facilities but also benefit from attractive payment plans and readily available mortgage finance. 

However, perhaps more importantly of all buyers can now view Bansko as a developed town and no longer need to second guess which area will become built up and which more desirable that the other.  I believe that there are 2 preferred locations, the up market Gramadeto area and either side of the ski runs.

Gramadeto area

I like this area as it is elevated up and away from the congestion of the main town yet within easy walking distance of all the amenities and gondola.  It also has a more upmarket feel perhaps due to the less densely packed construction and feeling of space.  Some superb developments here are the incredibly successful Paradiso Verde development in addition to the cutting edge St Georges Lodge also marketed by London agent Savills.

Gondola area

Being close to the gondola is a practical advantage and one favoured by most skiers. It will have a definite impact on the commercial viability of your apartment for both rent and sale.  Having said this the immediate area at the bottom of the gondola is rather noisy and busy, though this may be exactly what many visitors to Bansko want!  Nevertheless I feel that developments either side of the slopes going up towards the Pirin Mountains offer the best of both worlds.  Although there will be a premium on such properties the security of knowing that nothing can be built in front of your property is for me worth the extra investment.  Properties like Crystal Apartments for example are perfectly situated to offer easy access to skiing and great views. 
 

Abu Dhabi’s littoral is multiplied many times over by the sheer number of islands lying just offshore. Some of these will have the sophistication of a major metropolis, while others will be preserved as a sanctuary for natural fauna. All will offer a world of pleasures for residents, tourists and particularly those spending time afloat, writes Anthony Hackney.

Be it a palm, a pearl or a map of the world, the Gulf is witnessing reclaimed islands emerging from the ocean to create extra kilometres of coastline for development. Abu Dhabi, however, is lucky enough to have over 200 natural islands strewn along its coastline.

Abu Dhabi is a ‘T’ shaped island less than a quarter kilometre from the mainland. Like its neighbour Dubai – and much of the Middle East – it is experiencing exponential growth in property development. Like much of the rest of the world, waterfront properties are proving to be the most expensive, and lucrative, in terms of investment. Developers are currently turning large swathes of coast into prime waterfront locations, and in so doing are creating attractions for not only tourists but also residents alike.

There are many hotels and resorts in the pipeline, but also a large number of residential and commercial projects. As the largest of all seven emirates and with 40% of the total population, Abu Dhabi’s population is slated to grow at the manageable rate of 6.9% per annum over the next ten years. The thriving new waterfront communities are testament to this.

Most of the new communities have marinas as an integral part of their plans, and they will foster the burgeoning yachting community in the UAE. Abu Dhabi has probably the most established boating facilities as things stand, but they are still woefully under-prepared for the lifestyle that is being sold. They are a far cry from the marinas of the South of France as things stand. That said, the plans for what lies ahead are available for all to see, and I for one am impressed. The long trumpeted call that there are no ‘destinations’ per se in the Gulf for yacht and boat owners is about to be swept away. Some of these new locations are stunning, and whether your intention is to visit and charter a yacht or to live overlooking the marina that is home to your pride and joy, you should benefit from this. In fact, if you just want to sit in a waterside café, sipping an espresso and a glass of iced water while gazing out at playthings you can only dream about, you’re still going to benefit from all these developments.

Saadiyat Island

A $27bn commercial, residential and leisure project is currently under construction on Saadiyat Island. Half the size of Bermuda, Saadiyat will be the Middle East’s largest single island development, eventually housing 150 000 residents. There will be six distinct districts, surrounded by 19 kilometres of white beaches. In addition, it will be home to two golf courses, 29 hotels including an iconic 7* property, three marinas over 8 000 private villas, and 38 000 apartments. To cap it all off, there will be a series of eight iconic architectural landmarks to include galleries, museums and a state of the art concert hall. In fact, if the concert hall can better the acoustics of the auditorium of the Emirates Palace Hotel, it will be a crowning achievement. I watched a very competent production of Carmen there last night and the acoustics were exceptional.

Al Reem Island

The 6.5 million sq metres of Al Reem Island lie off the eastern coast of the main island. It is being developed by three main developers: Tamouh Investments, Sorouh Real Estate Investment, and Al Reem Investment. The combined worth of their projects is estimated to be in the region of $20bn.

The master plan envisages a mixed use community of leisure and entertainment facilities including golf courses, parks, marinas, beaches, shopping malls and art galleries.

Al Raha Beach

Al Raha is the long shore linking Abu Dhabi to Dubai. It too, is witnessing huge growth. The strip, being developed by Aldar Properties, will be home to 120 000 residents. The central marina will also be the major transit centre for ferries, water taxis and jet cats.

Al Gurm

Al Gurm is an eco-friendly waterfront resort located on the western edge of Abu Dhabi. Surrounded by lush mangroves, the resort will interplay with nature. It consists of only 161 private suites and 59 exclusive villas. It is to be managed by Banyan Tree Hotels and Resorts and will operate under the name Banyan Tree Marine Reserves and Spa. Prices are commensurately high….

Angsana Resort and Spa

Located on the eastern mangrove district, Angsana Resort and Spa will include a small marina for guests and residents of the resort. There will be a 100 room 5* resort, and a 50 berth marina.

Lulu Island

This man made island was constructed from 1988 to 1998 and is being developed by Sorouh Real Estate. Its two marinas should house 520 boats and yachts, and the island will be linked to the mainland by a series of bridges, walkways and underwater tunnels.

Yas Island

Spread over an impressive 2 500 hectares, Yas is roughly one third the size of Abu Dhabi Island, an has 32 km of shore line. Here will be situated the Abu Dhabi Grand Prix track as well as a Ferrari World theme park (Abu Dhabi now owns a 5% share in Ferrari). It will be a “complete leisure destination” according to Chairman of Aldar Developers, Ahmed Ali Al Sayegh.

To find out more about property in Abu Dhabi, visit www.offshore-properties.com