In recent years, the real estate market in the emirate has been growing steadily. Buying property in Abu Dhabi provides a steady stream of income and therefore an excellent opportunity to increase your capital.
Investors are now just beginning to show interest, and the Abu Dhabi property investment market is just beginning to develop.
Key features of Abu Dhabi Real Estate Market
High profitability for investors
The net profit from investments is 7–8% per annum, since housing here is in stable demand due to the structure and pace of market development. At the same time, despite the “wealth” of the emirate, prices per 1 sq. m here are lower than in Dubai.
Economic growth in Abu Dhabi, demand for rentals, rising prices for properties (1–2% per year). Basically, the direction is chosen for long-term investments in order to ensure stable passive income in the future.
Lower entry price compared to properties in Dubai
The property tax here is two times lower (2% instead of 4%). In addition, the capital offers excellent installment plans, in which most of the payments are due upon completion of construction.
That is, during the construction process in Abu Dhabi you need to pay only about 40%, while in Dubai you need to pay from 60% to 80% of the cost of housing.
Where can expats buy a property?
In 2019, the Abu Dhabi authorities allowed foreign nationals to own property in certain areas to increase foreign direct investment. There are currently 17 freehold zones in Abu Dhabi.
Abu dhabi Yas Island
It tends to be the most sought-after freehold in Abu Dhabi. This is the entertainment center of the city, which includes such facilities as the Yas Marina circuit, Yas Bay, and the Yas shopping center.
There are golf courses around, there are many restaurants and expensive hotels. Residential real estate is represented by both relatively inexpensive apartment complexes and luxury villas.
In addition, the island’s proximity to the Abu Dhabi-Dubai highway makes it particularly attractive from an investment point of view.
Prices range from 630 thousand AED ($171 thousand) for a studio to 2 million AED ($544 thousand) for a three-bedroom apartment and from 4.4 million AED ($1.2 million) for a three-bedroom villa to 9.2 million AED ($2.5 million) for a six-bedroom villa.
Al Reem
This one is Abu Dhabi’s most sought-after area, renowned for its upscale high-rise buildings and waterfront apartments. Prices for apartments range from 563 thousand AED ($153.2 thousand) to 1.9 million AED ($517.3 thousand).
Trends in the Abu Dhabi real estate market
Increasing demand for premium housing: Demand for luxury housing in Abu Dhabi has continued to grow in recent years. Buyers prefer luxury villas with sea views, penthouses in skyscrapers and townhouses with a private pool.
This is due to the increase in the number of tourists and expats seeking a high level of comfort and quality of life.
Development of innovative technologies and smart houses: Due to the growing demand for luxury real estate, developers are paying more and more attention to the introduction of advanced technologies and the creation of «smart houses».
This allows you to increase the level of comfort, save resources and manage housing remotely.
In the first three months of this year, a 100 percent increase in sales in the luxury segment was recorded; Sales of off-plan properties increased almost fourfold, and secondary sales increased by 20% compared to the fourth quarter of 2022.
About 80% of all transactions are residential properties located on Yas, Saadiyat, Al Reem, Ramkhan and Al Raha Beach islands.
Abu Dhabi has a 700-kilometer coastline with the best beaches in the UAE. There is soft white sand, clear water and as many as 283 islands. There is increased interest in acquiring large plots of land for the construction of their own projects from developers from Dubai, as well as investors from other countries.
This is due to the fact that the emirate still has many undeveloped territories, including islands, and the price of land is relatively low, while the infrastructure is well developed.
Benefits of buying a property in Abu Dhabi as an expat
If you invest at least $545k in Abu Dhabi real estate, you have the opportunity to receive a 10-year golden visa. It will not only allow you to bring your family and household staff to the UAE, but also benefit from a number of exclusive benefits provided by the Abu Dhabi Residency Authority (ADRO).
These include special offers and discounts on cars, real estate, medical services, health insurance and banking services.
Work
With a residence permit, you can legally work in Abu Dhabi, as well as gain access to vacancies and career opportunities that may not be available to non-residents.
Doing business
Owning real estate can provide an opportunity to open your own business or a branch of a company in the UAE. Depending on the type and size of the business, there may be different registration and permitting requirements.
High ROI
Thanks to its stability, resilience and flexibility, Abu Dhabi is objectively one of the most attractive places in the world for real estate investment.
The annual profitability here averages between 6% and 9%, which guarantees high long-term income. According to experts, this market will not only remain stable, but will only grow.
Safe and secure
Abu Dhabi is one of the safest cities in the world. The crime rate here is lower than in Dubai and the police are efficient. In addition, the city has many CCTV cameras and a high level of security in general.
Wide range of properties
A wide range of apartments are available in Al Reem Island An exclusive area with beautiful villas and apartments, surrounded by green parks and gardens. There are also shopping centers, restaurants and cultural sites here.
Villas. Individual houses with their own plot of land. In Abu Dhabi you can find villas of different sizes and price ranges, from small to luxurious.
For expats, Al Raha Beach is a beachfront area that also houses luxury apartments and villas. It also offers various sports and entertainment facilities such as an aqua park and a golf course.
Townhouses. Similar to apartments, but with a private entrance and sometimes a small plot of land. Townhouses are particularly popular on Yas Island . It is also home to famous tourist attractions including the Formula 1 Grand Prix at Yas Marina Circuit.
Commercial real estate. Offices, shops, restaurants, hotels, industrial facilities, etc.
Land. Undeveloped plots of land that can be used for real estate development often for sale in Abu dhabi.
Legal protection
The legality and transparency of purchasing real estate in Abu Dhabi is ensured by UAE legislation and strict government control. All real estate transactions must be registered in the state registry, which ensures the protection of the rights of buyers and sellers.
In addition, Abu Dhabi has a system of guarantee funds that protect buyers from some of the risks associated with purchasing real estate. If the developer fails to complete the construction of the project within the established time frame, the guarantee fund will pay compensation to the buyer.
Future prospects
House Museum Louvre Abu Dhabi Residences
The first residential complex in the Emirates, which is being created with the participation of the world famous art museum. The luxury building will be located in the Saadiyat Island cultural center.
The complex will recreate the atmosphere of a museum. Residents will be able to admire not only masterpieces of art, but also stunning views of nature and the architectural riches of the island. This can be done, for example, by going up to your apartment on a glass elevator.
The expected date of commissioning of the object is 2025.
Other benefits
The Emirates motivate people to invest in the development of the country, and in return they offer residency and related benefits:
- Possibility to open accounts in local banks and take out a mortgage. Transfers to many foreign banks are closed, and Emirates ID will help solve this problem;
- Access to public healthcare and health insurance;
- Opportunity to obtain a driver’s license;
- Children can be educated in public and private schools;
- Income tax 0%.
How to expat buy property in Abu Dhabi
Registration of a real estate purchase includes several stages and requires compliance with certain rules and procedures.
Preparation of documents:
After selecting a property, the buyer must prepare the necessary documents such as a copy of the passport, visa and payment of a deposit as security for the purchase.
Transaction Agreement:
The buyer and seller then sign a transaction agreement, which defines the terms of the purchase, the price and the timing of the transaction.
Preparation of legal documentation:
Concluding a transaction requires the preparation of various legal documents such as the sale and purchase agreement, acceptance certificate, etc.
Real Estate Appraisal:
The process of paying for real estate may involve an appraisal of the property to ensure its market value.
Signing the contract and payment:
After preparing all the necessary documents, the buyer and seller sign the sales contract and the buyer makes payment to the seller.
Transfer of ownership:
After payment and signing of all documents, ownership of the property is transferred to the buyer. This may include registering the transaction with the real estate authorities and registering the owner.
The Abu Dhabi real estate market is attractive to investors due to affordable prices and high rental yields. Having survived the coronavirus pandemic, it is showing steady growth due to the influx of foreign buyers who have gained the right to become full homeowners after legislative changes in 2019.
