Saadiyat Island, a natural island in Abu Dhabi, is being transformed into a cultural destination with a roster of art galleries and museums designed by world-famous architects. The world’s second Louvre, by architect Jean Nouvel, opens this month.
Surrounded by clear turquoise waters and lined with white sandy beaches, it has a beautiful coastline, along with an ever growing number of high-end residential developments, and arguably the city’s best beach, Saadiyat Beach.
A flourishing center for arts and culture in the Middle East that is now home to a world-class art gallery, it’s a unique development in Abu Dhabi similar to what the Palm Jumeirah is to Dubai, said Ivana Vucinic, head of advisory and research at Chestertons.
Yet while there is great excitement around the gallery opening, weak economic growth in the Emirate continues to have an effect on the island’s property market.. The collapse in oil prices in 2014 has had a big impact on Abu Dhabi’s economy, which is fairly reliant on oil revenues. Prices in the city have dropped by more than 15% since 2014, said Katie Burnell, residential sales and leasing manager at Cluttons.
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Across Abu Dhabi, "people have been made redundant and had to return home or find cheaper properties, and companies are giving employees lower accommodation allowances, so they are leasing smaller properties," Ms. Vucinic said. "Saadiyat’s property market, however, has been more resilient than other areas of the city."
There has been a shift in demand for homes around AED 1,000 (US$272) to AED 1,200 (US$327) per square foot, which are perceived to be more affordable, according to Ms. Vucinic. "Investors are now more interested in buying smaller homes such as studio and one-bedroom flats and two-bed townhouses and villas," she said.
Villas with sea views on Saadiyat Island were the weakest performing, registering a 19% downward adjustment during 2016, according to Cluttons’s Property Market Outlook published earlier this year.
A residential area on Saadiyat Island
Matilde Gattoni / Getty ImagesBoundaries
A triangle-shaped island positioned just off Abu Dhabi’s mainland area, Saadiyat lies between Al Reem Island and Abu Dhabi Island to the west, Al Jubail Island to the east and the Persian Gulf to the north.
Saadiyat is a 20-minute drive from the Corniche, the waterfront area of the city on Abu Dhabi Island, which has beaches, promenades and parks, and the Central Business District on Al Maryah Island.
It is accessible via the city’s main highway, the Sheikh Khalifa Bin Zayed Highway, which links to Abu Dhabi airport (45km), and Dubai, which lies 138km north.
Price range
Developed about 10 years ago, Saadiyat is one of the most expensive areas to live in the city, according to agents. Average values on the island last year were AED 1,800 per square foot (US$490), some AED 600 per square foot higher than the city’s average prime, according to the report by Cluttons.
A four-bedroom villa at the St. Regis Residences, the residential part of the St. Regis Saadiyat Island Resort, costs from AED 17 million to AED 20 million (US$4.6 million to US$5.4 million), according to Ms. Burnell.
A one-bedroom flat at Saadiyat Beach Residences costs between AED 1.9 million and AED 2.1 million (US$517,000 and US$572,000); a two-bedroom costs around AED 2.5 million (US$681,000); three-bedroom from AED 2.9 million and AED 3.2 million (US$790,000 and US$871,000); four to five-bedroom around AED 5 million (US$1.4 million).
Pictured is an interior view of a four-bedroom modern townhouse in Saadiyat Island. This newly developed luxury residence is currently asking for about $2.11 million.
GULF SOTHEBY'S INTERNATIONAL REALTYThree-bedroom townhouses at Saadiyat Beach cost around AED 5 million to AED 6 million (US$1.4 million to $1.6 million). Three-bed villas at the same development cost from between AED 6.5 million to AED 7 million (US$1.8 million to US$1.9 million).
Abu Dhabi’s property market is in a constant state of flux. Prices fluctuate and new developments are being built all the time. But the rewards are high. Landlords can get from between 5% and 10% yield per year, according to agents.
Renting a home on Saadiyat is expensive, and prices vary greatly even within the same development. The island has hundreds of the same type of unit but people price them differently, Ms. Vucinic said. The average one-bedroom flat on the island, she said, rents for AED 120,000 (US$33,000) a year.
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Housing stock
The island’s seven main gated communities are designed to be self-contained and have on-site facilities such as parks, playgrounds, swimming pools and gyms.
Many properties have Arabian-inspired architecture, with flat roofs and arched windows. But new developments and those in the pipeline look more contemporary.
Soho Square, whose look is inspired by the New York district it is named after, is a mixed-use development of 304 residences with clean lines and extensive glazing.
Apartments in the Emirate are usually much larger than their European counterparts. The size of a one-bed apartment is between 700 square feet and 800 square feet, which is usually what you would get for a two-bedroom flat in the UK, according to Ms. Vucinic.
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What makes it unique
Alongside having attractive gated communities with high-quality units and amenities, it is family friendly, and has a relaxed lifestyle and atmosphere.
The biggest attraction of the island is, undoubtedly, Saadiyat Beach. With whiter-than-white sands and warm aquamarine waters, it has a similar look to Miami.
A six-mile stretch of the natural beach belongs to the St. Regis Saadiyat Island Resort. The 400-meter adjoining public beach, managed by beach operator Bake, has lifeguards, yoga classes and a cafe. It is fringed by dunes, which are nesting grounds for the Hawksbill turtle.
There are options for those who want to water ski or take out boats for fishing trips or leisure cruising.
The island’s cultural quarter, known as the Cultural District of Saadiyat Island, includes the Louvre Museum, which is set to open this month, following years of delays and setbacks. The gallery features a perforated silvery dome that appears to float in its watery surroundings.
Guggenheim Abu Dhabi is a planned museum designed by Frank Gehry that was originally scheduled to open in 2012. There are to be an additional two museums and a marina district.
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Luxury amenities
A burgeoning hub for arts and culture in the Middle East, Saadiyat’s Cultural District is home to the Manarat Al Saadiyat ("The Place of Enlightenment"), an exhibition space with three large galleries along with a 250-seat theater, and the Fanr restaurant, which serves regional and international cuisine and has al fresco dining.
The restaurant scene on the island is impressive. Top dining spots include 55th&5th The Grill, an upscale steak house, Caramel Restaurant & Lounge, a fine dining restaurant, and Koi, a Japanese eatery.
You don’t have to leave the island if you want a pint of milk or an Americano. Groceries can be bought locally at Spinneys Market, which is part of The Collection, a retail complex at the St. Regis Saadiyat Island Resort. Home to Shakespeare & Co, Starbucks and Blacksmith Coffee, coffee lovers are covered.
A stroll around the island’s golf course, the Saadiyat Beach Golf Resort, offers the chance to spot dolphins, gazelles and the protected hawksbill turtles. It has a course by designer Gary Player, views of the Persian Gulf, and the Hawksbill restaurant.
Friday and weekend brunches are hugely popular in the Emirate. The Saadiyat Beach Golf Resort hosts a family brunch, and the St. Regis’s Friday menu has three brunch packages, which include alcoholic beverages.
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As for luxury hotels, there is the aforementioned St. Regis, a large beachfront resort with residences, which will soon have a Buddha-Bar Beach, a beach concept brand to be completed next year. The diminutive five-star Park Hyatt stands next door and offers 22 villas and suites. The Rixos Saadiyat Island Hotel, a five-star hotel, is under construction.
An exterior view of St Regis Hotel on Saadiyat Island
Matilde Gattoni / Getty ImagesNew York University has a campus on the island, which opened seven years ago. Known as New York University Abu Dhabi, the liberal arts and science college can cater to a student population of 2,600.
Children between 4 months and 4r years can attend Redwood Montessori Nursery, which can accommodate 140 children. Cranleigh School Abu Dhabi is a co-ed independent junior school for children aged three to 13, which opened three years ago.
The island doesn’t have a large shopping mall (yet) but there are plenty nearby. Shopping malls are the Emirati equivalent to a public park or square. Air conditioned and modern, people go to shop, socialize, dine and, most importantly, escape from the unrelenting heat.
Yas Mall on Yas Island is the city’s largest, with 370 shops and more than 60 restaurants and cafes. Al Maryah Island has The Galleria, with designer labels and a good range of dining options. There’s also Abu Dhabi Mall in the heart of the city.
Plus, department stores Macy’s and Bloomingdale’s are said to be opening stores in the emirate next year. Part of the billion-dollar retail project Al Maryah Central, they will be located in the center of the larger Al Maryah Island.
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Who lives there
There are lots of families living in Saadiyat, and there is an international feel about the place. It is home to local Emirati people, residents of the Gulf Cooperation Countries (Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman), and expats primarily from the Indian subcontinent, Europe and South America.
Some locals rent or buy homes on Saadiyat as a base during the working week and return to their family homes on the outskirts of the city on the weekends, according to Ms. Burnell.
They typically work in the oil and finance industries and for the government, which are the main employment sectors in the Emirate.
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Outlook
Ms. Burnell thinks prices will continue to soften over the next 12 months due to an increase in the supply of new property. "There are a lot of new developments that are due for completion," she said.
As a result, buyers have the upper hand. "Buyers are looking for realistically priced property and initiatives to buy," Ms. Burnell added. "But the market is adjusting to new trends and prices are close to plateauing."
There has been a shift toward more affordable homes, Ms. Vucinic said. "Properties that are priced high and larger units will struggle to sell and rent. The opening of the Louvre will increase interest from investors."