Eight facts about Abu Dhabi for those who desire to purchase an apartment

The United Arab Emirates remains a highly sought-after location for international investors, with Real estate in Dubai being just one option. The most successful emirate is Abu Dhabi, the capital of the UAE. Renowned for its high standard of living, modern architecture and impressive economic development, Abu Dhabi stands as a global hub of commerce and culture. Its sustainable property market boasts numerous attractive projects, making it a key point for investment. Let's have a closer look at eight key facts about the emirate that will be of interest to those who are planning to buy an apartment.

Content:

• A comfortable climate
• High quality of life
• Great employment and business opportunities
• The government's loyal policy towards expats
• Variety of offers
• Affordable housing prices
• High investment potential
• A promising market

A comfortable climate

A distinctive feature of Abu Dhabi is its hot desert climate promising life under warm and sunny skies year-round, with low precipitation levels. The hottest and wettest period spans from June to September, with temperatures soaring above 41 °C. However, the climate remains mild and pleasant the rest of the time. The average temperature during the year is about 27.9 °C. These conditions are another reason for investors, tired of the European slush, to move to the UAE.

High quality of life

Abu Dhabi was marked as one of the top 20 cities to move to in 2021, ranking 16th in the InterNations Expat Insider survey. The report highlights that the UAE provides an excellent quality of life and a high level of security, with an impressive score of 93%. The emirate has become a tempting destination among expats, with its strong economy, vast job opportunities and various sights of interest.

Great employment and business opportunities

Abu Dhabi, the primary emirate in the UAE, boasts approximately 95% of the nation's oil reserves and contributes nearly 55% to the GDP through its hydrocarbon industry.

The Abu Dhabi Economic Vision 2030 initiative presents numerous opportunities for both international and local investors in a variety of fields. This long-term plan aims to transform and develop the emirate's economy and includes the following objectives:

• Improving and scaling infrastructure, as well as expanding the city's transport networks;
• Decreasing the contribution of the oil and gas sector to GDP to 36% by 2030;
• Diversifying the economy by creating business opportunities in other emerging industries;
• Management optimization;
• Enhancing environmental sustainability;
• Developing the emirate's social and human resources.

Many companies have opened their representative offices in the UAE capital, providing extensive employment opportunities for both residents and foreign specialists. Deloitte, PwC, Accenture, KPMG, Schlumberger, Honeywell and others are some of the leading corporations in the emirate.

Due to stable economic development and wide employment opportunities, expats choose Abu Dhabi to buy residential real estate.

The government's loyal policy towards expats

The UAE is not only welcoming to international investments but also to foreigners. While obtaining Emirati citizenship is difficult, the country offers resident visas that allow people to live here. The validity period depends on the type of visa. Real estate investors can also avail themselves of this opportunity. Simply purchasing an apartment or house in areas available for foreigners to buy housing grants eligibility. However, the value of the property must exceed AED 2 million (USD 544,000).

Variety of offers

The emirate is actively developing and offers all the popular real estate types, from budget flats to premium villas. The housing is of high quality and fully meets the demanding comfort requirements of buyers. Moreover, investors can choose from both ready-made and off-plan properties, significantly expanding their options.

Affordable housing prices

As per the latest data from the Federal Competitiveness and Statistics Authority (FCSA), the average cost of buying a home in Abu Dhabi is USD 3,550 per square metre.

The price difference can be significant: a luxury penthouse in areas like Al Rifa or Al Samha may be more expensive than a villa on Yas Island. However, overall, the cost is more attractive compared to many other cities around the world. For comparison, the price per square metre in Abu Dhabi is 5.4 times lower than housing in New York and 46% cheaper than apartments in development projects in Dubai.

The highest property values are typically found on Saadiyat Island and Al Raha Beach, whereas more affordable options can be found in areas like Al Shamkha, Al Watba and the city of Mohammed Bin Zayed.

High investment potential

Abu Dhabi's property market boasts a high return on investment of 10-11%. These figures are as good as the returns on apartments in Dubai. The areas offering the most attractive returns are Al Rifa with 7.75%, Al Reem Island with 6.48% and Masdar City with 6.98%.

A promising market

In 2023, Abu Dhabi concluded over 14,000 real estate deals worth AED 44 billion (USD 11.98 billion), including over 10,000 off-plan development projects amounting to AED 35.6 billion (USD 9.7 billion). Compared to the previous year, there was a 95% increase in the quantity of off-plan real estate agreements, with a 174% rise in their overall worth.

To provide a comparison, there were 2,734 off-plan real estate transactions in 2021, which increased to 5,095 in 2022 and further rose to 10,000 in 2023. Nonetheless, the number of upcoming off-plan developments continues to rise. Forecasts predict that the demand for apartments in new buildings in Abu Dhabi will remain high in 2024 because the emirate is becoming increasingly attractive for both living and working.