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Real estate in the United Arab Emirates has become a very popular investment tool among foreign nationals over the past year. However, this demand is not new. Today the development market in Abu Dhabi offers a lot of residential and commercial properties for sale. There is a huge demand for apartments and villas in Abu Dhabi. Why is it worth investing in UAE real estate in this Emirate? Here are five reasons to buy property in Abu Dhabi.
Content:
- Low property registration fee
- Large international community
- High ROI
- High tourist traffic
- Tranquil, clean, and safe
- Abu Dhabi is one of the world’s top education hubs
- Outlook
- Foreign property ownership
- The best communities to buy property in Abu Dhabi
- What factors affect the price of housing in Abu Dhabi?
Low property registration fee
When purchasing real estate in the United Arab Emirates, you must pay a property registration fee. You can buy property in Dubai and pay a 4% fee. For Abu Dhabi, this figure is even lower – only 2%. Property prices in Abu Dhabi are lower than in its neighboring Emirate: for example, villas in Dubai are at least 30% more expensive than in Abu Dhabi.
Large international community
Abu Dhabi is as multinational a city as Dubai. Foreigners come here as tourists and future residents who want to settle for longer. As housing prices rise, so does rent. This, in turn, drives up the return on property purchased at a lower price in the initial stages of market development.
High ROI
In 2022, the following Emirate’s communities were the most popular to buy and rent property:
- Al Reef, with an average cost of a residential unit is AED600,000 ($163,000);
- Al Ghadeer, with an average of AED500,000 ($136,000);
- Baniyas, with an average of AED600,000 ($163,000);
- Masdar City, with an average of AED790,000 ($215,000).
The average ROI in these communities is:
- Al Reef – 7.77%;
- Al Ghadeer – 7.06%;
- Baniyas – 4.75%;
- Masdar City – 7.18%.
High tourist traffic
Having bought a villa or apartment in Dubai or Abu Dhabi, the owner can rent their property out by the day or enter into a long-term lease. In any case, they are guaranteed a stable and constant income. In 2022, over 15 million people from around the world visited the UAE. Abu Dhabi is the second most popular tourist destination in the country, as the tourist traffic is growing. Although the majority of tourists visit Dubai, Abu Dhabi is rapidly developing as a travel destination and has great potential.
Tranquil, clean, and safe
Residents of Abu Dhabi lead a very slow-paced lifestyle. There is a big positive to this. The Emirate is very clean. In 2020, the city was the first in the region to launch a safe and clean certification programme for the tourism sector. The authorities make sure that both tourists and residents enjoy a comfortable stay in Abu Dhabi.
According to Numbeo, the world’s largest crowd-sourced database of quality of life data, in early 2023, the capital of the UAE has been ranked the safest city on the planet with the lowest crime rate.
Abu Dhabi is one of the world’s top education hubs
The capital of the Emirates boasts a very high quality of both higher and secondary education. It is home to Zayed University and the Higher Colleges of Technology. Students from all over the world, who also look for long-term rentals, come to Abu Dhabi. This, too, makes the city appealing for long-term investment.
Outlook
Abu Dhabi has ambitious plans for the future. The government plans to expand the tourism sector, green areas and beaches as well as increase the number of commercial real estate and areas for construction of educational and medical institutions. Being the capital of the United Arab Emirates, Abu Dhabi houses major government agencies.
Foreign property ownership
While five years ago real estate in Abu Dhabi could only be rented, the situation changed in 2019. Now foreigners are allowed to have full ownership of property.
In September last year, new regulations came into force in the United Arab Emirates. When purchasing real estate for AED2 million ($545,000) and higher, foreign citizens can receive a Golden Visa for ten years (not for five, as it was before). Both the investor and their relatives obtain residency: their parents, spouse, sons under 25 years old and daughters of any age if they are not married.
The best communities to buy property in Abu Dhabi
Let’s look at the Emirate’s most popular communities among tenants and tourists.
Saadiyat Island: A cultural Mecca in the Middle East
Connected to Abu Dhabi by two bridges, Saadiyat Island is home to unique cultural treasures:
- Louvre Abu Dhabi, a franchise of the Louvre;
- Manarat Al Saadiyat, an exhibition center;
- Guggenheim Abu Dhabi, a planned museum of global modern and contemporary art;
- Zayed National Museum, a planned memorial museum.
All of these projects were designed by Pritzker Prize-winning architects.
Advantages of Saadiyat
The island is home to cultural and historical monuments of art, art objects, and first-class resorts. You can relax on the white sand beach, play golf at Saadiyat Beach Golf Club, dine at Saadiyat Beach Club, or enjoy Middle Eastern, Caribbean, and Japanese cuisines at Mamsha Al Saadiyat.
Yas: A cluster of grand entertainment
Yas Island is just a 30-minute drive from Abu Dhabi and a 15-minute drive from Abu Dhabi International Airport. The infrastructure of the island boasts the following:
- Ferrari World theme park;
- Yas Waterworld waterpark;
- Warner Bros. World™ theme park;
- SeaWorld Abu Dhabi;
- Yas Mall and CLYMB, an indoor adventure hub;
- Yas Marina Circuit;
- Yas Links golf course;
- Island beach with mango groves, azure water, and white sand;
- Etihad Arena, the largest indoor arena in the Middle East with a capacity of 18,000.
What factors affect the price of housing in Abu Dhabi?
There are 57 districts in the capital of the UAE. The cost per square meter of living space depends on the parameters of the property (the total number of rooms, bedrooms, and bathrooms), the location of the residential complex, and internal infrastructure (whether it has a swimming pool, sauna, and gym; the size of the parking area). Prices in popular districts start at AED8,400 ($2,300) per square meter and reach AED21,300 ($5,800). The average cost per square meter is AED11,605 ($3,160).
If you are thinking about buying a home in Abu Dhabi as an investor, call or message us in the chat box for a free consultation. We will tell you what to consider when choosing a residential complex, answer your questions about specific districts of the Emirate or the purchase procedure, and help you select the most profitable property as of now.
