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Global HNWIs to spend ‘$2.8 million on average’ on Abu Dhabi property
According to Knight Frank’s survey, 45 per cent of global HNWIs indicated that the emirate’s development plans enhanced its appeal as an investment destination.
Global property consultancy Knight Frank’s 2023 Destination Dubai report has revealed that Abu Dhabi has emerged as the second most popular real estate investment destination for global high-net-worth individuals (HNWIs) behind Dubai.
According to the report’s findings, 21 per cent of the respondents identified the UAE’s capital as their most preferred property acquisition destination in the UAE. Dubai topped the list (with 67 per cent of HNWIs preferring the emirate) and Ras Al Khaimah rated third (with 5 per cent selecting the northern emirate).
Faisal Durrani, head of Middle East Research, Knight Frank, says: “Abu Dhabi as a destination has been slowly rising in global prominence, particularly as large-scale cultural and entertainment projects such as the Louvre, Qasr Al Wattan, Ferrari World, Sea World and the Warner Bros Theme Park start to capture the attention of global travellers. And it’s paying off, with 45 per cent of global HNWIs indicating that the emirate’s development plans are positively influencing their view of the emirate as an investment destination.
“Moving further up the wealth spectrum reveals that those with a net worth in excess of $10m view Abu Dhabi even more favourably as a result, with 57 per cent of this cohort keen on investing in the city. Among East Asian HNWI, the figure rises further to 70per cent, according to our survey.”
Popular areas in Abu Dhabi
Amongst them, a whopping 89 per cent have expressed interest in investing, notably in the residential sector. Meanwhile, luxury residential properties such as those on Saadiyat Island have begun attracting the attention of the international elite, due in large part to highly competitive prices when compared with other high-end locations such as Dubai’s Palm Jumeirah.
Durrani continues: “When it comes to committing to a real estate investment in Abu Dhabi, 74 per cent are interested in exploring investment options, but the challenge, as has been the case historically has been to convert this interest into transactions.
“One of the most fascinating findings has been the influence Dubai has on the perceptions of Abu Dhabi in the minds of HNWI around the world. The appetite of frequent visitors to Dubai to purchase real estate in Abu Dhabi stands at 73 per cent, 50 per cent of are willing to allocate over $2m for a property in Abu Dhabi, with the average allocated budget being $3.7m.
“Clearly, there remains an opportunity to capitalise on this positive familiarity through perhaps more aggressive campaigns in Dubai, or indeed through the entry into the Dubai market to build greater credibility, similar to Aldar’s recent JV announcement with Dubai Holding for 9,000 homes in Dubai’s suburbs.”
Adding onto that, Shehzad Jamal, partner – StratCon, Healthcare, Education & Real Estate, said: “Abu Dhabi is quickly becoming a global destination for HNWIs looking to invest in real estate. The emirate’s strong economy, stable political environment, and world-class infrastructure are all major factors driving this interest. In addition, Abu Dhabi’s cultural attractions, such as the Louvre Abu Dhabi and the upcoming Zayed National Museum, are also appealing to HNWI. We expect to see this trend continue in the years to come, as Abu Dhabi becomes an even more attractive place to live, work, and invest.”
Ras Al Khaimah on the rise
Knight Frank’s destination Dubai research report also highlighted how HNWIs around the world perceive Ras Al Khaimah’s potential.
While the upcoming Wynn Resort and the adjoining 18,500 sqm casino on Al Marjan Island, set to open in 2027, 30 per cent of respondents surveyed in the report said the casino would enhance their likelihood to invest in RAK property. Notably, this figure jumped to 60 per cent among East Asian respondents, emphasising the region’s growing interest in UAE’s investment opportunities.
Durrani said: “Ras Al Khaimah has been quietly transforming itself over the last 10-15 years as an alternative tourist hub to Dubai and part of this plan involves the now under construction 1,500 room Wynn hotel and responsible gaming resort. Interestingly, 55 per cent of global HNWIs say the emergence of a gaming resort in Ras Al Khaimah does not influence their perceptions of the emirate as a place to invest, but 30 per cent say it makes it more attractive. For those with a net worth of over $10m, this rises to 50 per cent and amongst East Asian HNWIs, 60 per cent are more keen on Ras Al Khaimah as a property purchase destination directly as a result of Wynn’s development on Al Marjan Island.”
News
Lagos schedules meeting with owners of distressed buildings.
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
News
FG threatens contractors over Enugu-Onitsha road delay
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
News
Ekiti state government mediates land dispute between traditional ruler and family in Epe-Ekiti
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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