We've just arrived in Abu Dhabi and begun searching for a home to rent. The more I read and hear, however, the more confused I'm becoming about where to look. Even though my husband works in the capital, would Dubai be a better option, with more choice and lower rents? Of course, it'd be better if he doesn't have to commute. We have a two-year-old and will need to think about nursery school for him next year. What should my priorities be?
As you've noted, finding your ideal home in Abu Dhabi is a challenge. Even in the current climate, demand for good-quality residential accommodation still exceeds supply. However, with an increase in Abu Dhabi's population, as well as the volume of commuter traffic from Dubai, journey times have increased significantly and a number of our clients living in Dubai are finding their commute a struggle.
Remember that living in one city and working in another also restricts the amount of social interaction you will have with colleagues, possibly making it more difficult to integrate. If you subsequently decide the commute is too much and you wish to relocate to Abu Dhabi, the move can be quite an upheaval for any small child who has established friends and a routine.
Much depends on the type of property you are considering. Prices for villas and larger, family flats are quite similar in both cities; the real difference comes for smaller units like studios and one- or even two-bedroom apartments, of which there is a lack of supply in Abu Dhabi and an excess in Dubai.
List your must-haves, such as outdoor space, parking, number of bedrooms, maid's room, and prioritise these into those you cannot live without and those on which you are prepared to compromise. You'll inevitably find that friends and family visit soon after your arrival, but this does wane so consider whether it's wise spending money on a property that exceeds your requirements (a commonplace mistake).
A good brief will help your leasing consultant find the most suitable property. While you can undertake your own search, an agent who has good contacts with local landlords and excellent market knowledge will know what is becoming available. Many popular buildings are snapped up before they can be marketed.
When considering locations, remember that areas evolve surprisingly quickly here and if you intend be an expat for the medium to long term, look at what is coming to your area in the near future. To help focus your search, drive around and familiarise yourself with different areas and their distances from some of the key locations such as the main malls, the airport, restaurants and beaches, as well as schools and workplaces.
Even though your son hasn't started school yet, you must plan for it. Proximity to good educational facilities is a must and areas off the island, such as Khalifa A, offer a great selection. Also consider outside space in which he can run around - for eight months of the year the climate is very pleasant. Some newer villa compounds have excellent children's facilities on-site, which will give him the chance to mix with other young children. And, of course, having a young family immediately opens many doors socially. Many of these compounds are located off the main island, making rents slightly cheaper. For example, a three-bedroom town house can be rented for Dh230,000 per year. Good road links into the city mean that journey times from these off-island areas can often be quicker than commuting across central Abu Dhabi.
When viewing properties, consider the following: Always check the air conditioning system - central air-conditioning is more economical than window units or split air-conditioning. Access to a car is important and this should be a decisive factor because parking can be an issue. If you view a property during the day, make sure you go back to the building in the evening to see how congested the area is before you decide. Typical rent for parking spaces is an additional Dh15,000 per year.
Very few buildings include white goods or kitchen appliances, so factor that into your budget or look for a building that does offer them. Is there construction adjacent or does it look as if there may be? Abu Dhabi is rapidly growing and a new tower being built next to your bedroom could affect your sleep for at least a year.
Wherever you choose, remember that this is likely to be an entirely new lifestyle with different demands (and benefits) - and, above all, be prepared to adapt.
* Emily Davies was talking to Andrea Menown, the leasing manager at LLJ Property, Abu Dhabi; 02 495 0500; www.lljproperty.com
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
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.”
