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The capital of the United Arab Emirates is Abu Dhabi. Although less well-known than neighboring Dubai, this city is also popular among those looking to relocate to the country or invest in real estate. Buying an apartment or a house in Abu Dhabi will, on average, be less expensive than purchasing property in Dubai. What information is required for those looking for an apartment, flat, or house in Abu Dhabi? This is covered in our article.
Content:
- Who is permitted to purchase property in Abu Dhabi and what types of properties are on offer?
- National diasporas
- How is the process of purchasing a home in Abu Dhabi?
- High return on investment
Who is permitted to purchase property in Abu Dhabi and what types of properties are on offer?
Foreigners could not acquire real estate in Abu Dhabi until recently. They were offered long-term leases, with the option of renting for up to 99 years. Of course, this is convenient, but it results in extra expenses rather than profits. However, the city's rules have changed, and the idea of "freehold" has been introduced. Now citizens of other nations can now buy apartments in a variety of the following districts throughout Abu Dhabi:
- Al Reem Island;
- Yas Island;
- Saadiyat Island;
- Al Maryah Island;
- Al Raha Beach;
- Al Reef;
- Al Shamkha;
- Al Ghadeer;
- Jubail Island Nurai Island;
- Al Jurf – Ghantoot.
There are no limitations on the types of real estate available: those interested can buy flats, apartments, houses, villas, or townhouses. In addition, if investors purchase costly real estate (from AED 2 million), they may be eligible for a so-called Golden visa, which is a 10-year residence permission. Other advantages of the preference include:
- free residence on the territory of the country;
- opportunity to open a bank account;
- opportunity to do business in the country;
- opportunity to become the UAE tax resident.
Consistent high demand characterizes the real estate market in the UAE, making it an attractive investment option.
National diasporas
The UAE is home to a huge number of expats from several nations. By the way, two UAE cities were included in the ranking of the most comfortable countries for travellers last year: Dubai and Abu Dhabi (ranked second and ninth, respectively). It's no surprise that the excellent level of living and pleasant weather attract an increasing number of foreigners.
Since people from other nations live in Abu Dhabi, getting used to a new place of residency and assimilation will be easier for an emigrant: in an unusual environment, you can meet representatives of your diaspora, with whom you can talk in your native language on a regular basis. Furthermore, because of the experience of other expats from their home country, it is easier to negotiate real estate offers.
How is the process of purchasing a home in Abu Dhabi?
A preliminary contract is signed by the transaction's parties prior to the actual deal taking place. It specifies the property's address, the price, the parties' rights and obligations, and the payment plan. It is not necessary to certify the agreement with a notary if it is written in English or Arabic.
The parties then sign a memorandum of understanding in which the buyer transfers a deposit to the seller equal to at least 10% of the cost of the apartment or house, certifying the buyer's desire to purchase real estate. The contract is valid for 30 days.
The property owner and buyer then visit the developer's office to obtain a certificate of no objection. This document certifies that the owner owes nothing to the developer and is free to sell the unit.
The final stage is ownership transfer. The deal is completed by both parties at the Abu Dhabi Land Department. The buyer receives a check and transfers the funds. Following that, he receives a Title Deed, indicating ownership.
When a foreigner purchases off-plan real estate, there are fewer stages: a memorandum of understanding and a certificate of no objection are not required because the transaction is conducted directly with the developer.
The process takes around a month on average. In addition to the previously mentioned, the following documents will be necessary for a sell and purchase transaction:
- buyer's passport;
- if the buyer is physically present in Abu Dhabi during the transaction, his visa will be required;
- a power of attorney if someone else is acting on behalf of the buyer.
High return on investment
Due of the market's rapid development, housing in Abu Dhabi is in high demand. At the same time, experts estimate that the annual profit on real estate investments is 7-8%. At the same time, any Abu Dhabi property owner can rent it out.
The sole condition is that the rental agreement must be for at least a year. If the owner want to rent out his property for a shorter period, he must seek a specific license. If you do not want to draw up papers, you can call a licensed management company and transfer your flat or property to them for management. The company will then be in the position of renting out housing, and you will simply receive your money.
It is also worth noting that rental accommodation in Abu Dhabi is in high demand: you may rent out property to tourists, expats, or businessmen on long business visits to the UAE.
According to analysts' estimates for 2023, the market in Abu Dhabi will continue to rise - and demand for real estate purchases among foreigners, particularly from European and Asian countries, will be significant. First and foremost, the idea of acquiring a "Golden visa" draws people's attention.
