Abu Dhabi: perspectives and benefits of investment

Abu Dhabi is the capital of the United Arab Emirates, the most important cultural, economic, and tourist centre of the region, and one of the richest cities in the world. Here is a concentration of giant skyscrapers, magnificent hotels, huge shopping centres, and luxury villas. Many people are looking to buy property in Dubai and Abu Dhabi. In recent years, the capital emirate has become increasingly popular with investors. Whether investments in the residential sector of the UAE capital are justified now, what returns can be expected, and what areas of the emirate are most suitable for these purposes, we will discuss in this article.

Content:

• Abu Dhabi’s economic growth and property sector development in 2023
• The benefits of investing in properties in Abu Dhabi
• What are the best neighbourhoods to buy a home in Abu Dhabi?
• Price overview and return on investment
• Buy Arab property profitably

Abu Dhabi’s economic growth and property sector development in 2023

The GDP of the capital accounts for 60% of the total GDP of the country. By the end of 2022, it has reached $299 billion. Thanks to construction projects and cultural development, the city’s labour market and economy are growing rapidly. The number of property transactions in H1 2023 increased by 94.1% year-on-year. The value of villas increased by 6% and flats by 1%.

According to analysts’ forecasts, the property market will not only remain stable but will continue to grow. The most sought-after locations in 2023–2024 may become Yas Island and Saadiyat Island communities. Demand for property among foreigners will increase. This is facilitated by the favourable economic climate, political stability, and the opportunity to obtain a five-year golden visa for investment in property worth $544,500 or more.

The benefits of investing in properties in Abu Dhabi

Several factors make investing in the emirate’s housing profitable and reliable:

• Prices. A square metre of housing in Abu Dhabi is cheaper than in Dubai and the largest metropolises in the world, such as London, Hong Kong, and Tokyo.
• Taxes. The emirate has zero personal income tax and a high return on investment (ROI), which is on average 6–7% per annum. All rental income remains with the investor.
• Relatively limited supply. Despite the launch of new housing estates, the demand for buying and renting housing in the capital emirate is very high. This creates a favourable situation for investors.
• High quality of life. According to Numbeo’s Safety Index rating, the city has been recognised as the safest in the world for six years in a row. The best medical and educational institutions, unique cultural facilities, and world-class events are concentrated here: the Abu Dhabi Science Festival, UFC fights, Formula 1 Grand Prix, Abu Dhabi Art Fair, and others.

What are the best neighbourhoods to buy a home in Abu Dhabi?

Foreign citizens can purchase property in the Emirate’s freehold areas for private ownership. They have well-developed infrastructure: there are schools, hospitals, shops, restaurants, and magnificent beaches. Among the most popular communities are:

• Yas Island
• Saadiyat Island
• Al Reef
• Al Reem Island

Yas Island is home to colourful theme parks such as Ferrari World, SeaWorld, and Warner Bros. Abu Dhabi. There are also luxury golf courses, malls, fashionable hotels, and entertainment facilities. The return on investment (ROI) is 6.4% per annum.

Saadiyat Island is the cultural centre of the emirate, with a famous museum, the Louvre Abu Dhabi. There is a golf club from whose grounds you can watch dolphins in the Persian Gulf. The Manarat Al Saadiyat Art Centre regularly hosts contemporary art exhibitions.

Al Reef is one of Abu Dhabi’s most upmarket communities, with beautiful sea views, 5-star hotels, luxury residences, numerous restaurants, and cafes. The community offers many outdoor activities including water sports.

Al Reem Island is a natural island connected to Abu Dhabi by bridges. It is home to the emirate’s most famous landmark, The Gate Towers, inspired by Stonehenge. The island is also home to a branch of the Sorbonne, the first international campus of this prestigious French university. The average return on investment is 6.7% per annum.

Price overview and return on investment

According to the results of H1 2023, Al Reef neighbourhood became the most popular for buying affordable flats. The average price of studios here was $132,000, $156,000 for one-bedroom apartments, and $211,000 for two-bedroom apartments. The return on investment (ROI) in apartments in Al Reef reaches 8.6% per annum.

Al Reem maintains its leadership among the areas for buying premium apartments. The average price of one-bedroom flats is $226,500, two-bedroom flats can be bought for $366,500, and three-bedroom residences are sold for $560,500. ROI is up to 8.4% per annum.

The leader among the areas for buying affordable villas is also Al Reef. Villas with three bedrooms here cost an average of $436,000, the ones with four and five bedrooms are priced at $603,500 and $690,500, respectively. The payback on homes can be as high as 7.2% per annum.

The best position for buying luxury villas was taken by Saadiyat Island. The average price of a four-bedroom villa here is $2.1 million, and $4.6 million and $6.4 million for houses with four and five bedrooms, respectively. The average ROI is up to 6.1% per annum.

At the moment, the emirate is being actively built up with premium residential complexes with first-class amenities. Attractive projects include:

• Louvre Abu Dhabi Residences
• Yas Golf Collection
• Yas Park Gate

An investor can purchase apartments in development projects in Dubai and Abu Dhabi at the start of sales. Property in Abu Dhabi purchased at the construction stage increases in price by up to 30% by the time of completion, which will make it possible to resell the purchased property profitably.

Buy Arab property profitably

The most convenient way to study the current offers on the UAE property market is to use the Emirates.Estate aggregator website. You can apply convenient filters and select properties by price, area, location, and other parameters. The site contains offers from leading developers, proven real estate agencies, and private individuals. You do not need to spend time searching for ads on various sites because everything is collected in one place. Start exploring options for apartments and villas in Abu Dhabi today, and you can make a profitable investment by buying apartments or villas in Dubai or Abu Dhabi.