Abu Dhabi developer Aldar Properties has secured reservations for more than half of the first residential building in its upcoming Mandarin Oriental branded development through off-market sales, as the emirate’s cultural district continues to attract ultra-wealthy global investors, a senior executive told Arabian Business.
The development, comprising two buildings with approximately 120 units each, marks Abu Dhabi’s first Mandarin Oriental branded residences and is situated in the prestigious Saadiyat Cultural District, overlooking the Zayed National Museum.
“Our initial approach has been to talk to those individuals who have invested with us before and expressed a desire to look again, and we’ve now started to transact with those first customers,” Jonathan Emery, Chief Executive Officer of Aldar Development, told Arabian Business in an interview on the sidelines of the Abu Dhabi Formula One Grand Prix.
The project, which was announced in October, has initially focused on a bespoke sales strategy targeting previous Aldar investors and those who had registered interest in the cultural district.
“We wanted to talk to those customers who have invested with us before and also those who said ‘when you’ve got something special in the cultural district, please let us know’ – a waiting list, if you like,” Emery said.
The development is attracting a mix of investors and end-users, with many potential buyers planning to use the residences as part of a global lifestyle.
“Some of those investors, you think about a sort of global lifestyle, where they’ll spend three or four months here, and then three or four months in another location, so there’s a bit of blur between what’s an investor and what’s an occupier,” the CEO explained.
The Mandarin Oriental Residences, scheduled for completion in 2028, will feature 228 premium homes across two buildings, strategically positioned to preserve views of the Zayed National Museum. The development will have access to 3,500 square metres of premium dining spaces along the museum’s promenade.
Saadiyat Cultural District appeal
The project’s location within the Saadiyat Cultural District, home to the Louvre Abu Dhabi and the upcoming Guggenheim Abu Dhabi, has been a significant draw for buyers, according to Emery.
“I think by that time, the Zayed Museum will be fully populated and will be globally renowned, and the Guggenheim will be open, and individuals are going to walk in and go, ‘How amazing was it that I was able to buy this two years before anyone realised what this place is going to be?'” he said.
The development comes amid growing demand for branded residences in Abu Dhabi, with the emirate seeing record-breaking transactions. Earlier this year, a penthouse in one of Aldar’s branded residential developments on Saadiyat Island sold for 137 million dirhams ($37.3 million).
Emery emphasised that despite the strong market conditions, the success of luxury developments isn’t guaranteed.
“We must never underestimate the choices that people have to make. We’re in a very competitive world. Not only is UAE competing for talent and investment with everybody else in the Middle East and globally… but within Abu Dhabi, there is a competitive developer landscape.”
Neighbouring Dubai has seen a massive surge in global investor demand for branded residences over the past couple of years, with many new projects already in the pipeline. A recent report suggests that 140 branded real estate projects will be completed by 2031.
The Mandarin Oriental development will benefit from its proximity to other cultural landmarks, including the forthcoming Natural History Museum Abu Dhabi, and will have access to 60,000 square metres of retail, entertainment, and leisure facilities at the nearby Saadiyat Grove.
Construction is expected to begin following the completion of the design phase in the next six months, with the first residents scheduled to move in by 2028, coinciding with the planned opening of several cultural institutions in the district.
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