Real Estate in Abu Dhabi: 5 Reasons to Invest in the UAE Emirate

Why it is profitable to invest in real estate in Abu Dhabi - key points of the economy, tourist and office segments, what the authorities are currently focusing on. What real estate offers are available on the market: apartments, townhouses, penthouses, villas and studios, as well as purchasing land in Abu Dhabi.

Price from$ 170 000

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up to 8% p.a.income in currency

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5 reasons why investing in real estate in Abu Dhabi is worth it

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Abu Dhabi is the capital of the United Arab Emirates, where the main economic resource is oil. What makes the emirate attractive to Russian investors? Not only the absence of harsh winters and an eternal summer, but also the opportunity to invest in a developing real estate market, where emphasis is placed not only on a large number of offers, but also on the development of all sectors of the economy to create a stable investment environment to generate maximum profit.

As Simon Townsend, Head of Strategic Consulting at CBRE MENAT, stated: "Intense competition has led to all sectors of the economy, including the real estate market, being focused on the end user, especially in the UAE capital. This means that developers are now seeking creative and individual solutions to attract more investors and buyers."

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New buildings in Abu Dhabi

The best houses and apartments from the developer in the UAE

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from $ 408 000

Sea La Vie

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Sea La Vie is the first project by Nine Yards, consisting of four mid-rise buildings located in the prestigious Yas Bay community.

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from $ 768 000

The Source II

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The Source II is a luxurious residential complex developed by Aldar Properties in the heart of the Cultural District, on Saadiyat Island.

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from $ 327 000

Louvre Abu Dhabi Residences

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Louvre Abu Dhabi Residences is a residential complex by developer Aldar Properties.

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from $ 404 000

MANARAT LIVING

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MANARAT LIVING by Aldar Properties is a project aimed at implementing sustainable development strategies in the heart of Abu Dhabi's cultural life.

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from $ 517 000

Sama Yas

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Sama Yas on Yas Island is the first luxury complex with its own green park from the well-known company, Aldar Properties.

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from $ 545 000

Ajwan Towers

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Ajwan Towers is a mid-rise complex by ESK Investments.

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Economic attractiveness of Abu Dhabi for Russian investors

The benefits of investment should be considered in terms of purchasing real estate for either rental or subsequent resale for income, depending on the total return value of the invested funds. Alternatively, it is possible to buy, rent out, and then resell. In any case, these are long-term investments that can generate income within a few months of purchase, if the property is not off-plan.

Buying real estate in Abu Dhabi can be done in the same way as Dubai - either by providing the full amount of the property cost upfront, in installments according to the developer's payment plan, or through a mortgage. Just like in neighbouring Dubai, the emirate's territory is divided into zones with free sale, restricted sale, and areas where buying real estate is not allowed for foreign investors.

The Abu Dhabi government is doing everything possible to revive the emirate's real estate market and make it more attractive to foreigners. Therefore, when talking about investments, one should consider not only the real estate sector itself, but also the economic benefits from the tourism segment.

Real estate market in Abu Dhabi

Currently, the real estate market in Abu Dhabi shows a decline in prices for apartments, townhouses and villas, where the average cost for 2019 dropped by 11% compared to the fourth quarter of 2018. However, this does not mean that real estate is becoming cheaper and will not bring profits in the future, but rather that the market is expanding with new properties and a larger number of offers.

The second important factor is that most developers offer increasingly favourable conditions, including the reimbursement of fees and other expenses, free home maintenance, and more.

According to ValuStrat, the average price per square metre currently stands at AED 9,300 for studios, AED 10,300 for apartments, and AED 6,900 for villas. According to the Department of Municipalities and Transport (DMT), there were 19,000 real estate transactions in 2019 with a total value of $15.8 billion.

  • large number of offers for investors
  • favorable terms from developers
  • expansion of the freehold area in the emirate
  • golden visa option
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As DMT's Executive Director, Hamad Al Mutawa, explains, this positive trend is the result of investors seeking a "safe, stable, and economically attractive investment environment". Furthermore, by the end of 2023, over 28,000 new residential properties are expected to enter the market, adding to the existing 258,000 units.

In addition to a wide selection of properties, Abu Dhabi authorities are making it easier for foreign clients to buy property by simplifying property ownership laws. The key development is the expansion of the freehold zone within the emirate and the issuance of a Golden Visa, which grants residency for 10 years to entrepreneurs, investors, scientists, and many others.

This has also affected the commercial real estate sector, where not only are there more spaces available for future office rentals, but additional jobs are being created. This is confirmed by Ghadan 21, which invested over $16.3 billion in the office sector.

Tourism in Abu Dhabi

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The positive growth trend and hotel sector of Abu Dhabi have not been overlooked. In the second half of 2019, the demand for hotels in the capital increased due to events such as the Olympics, AFC Asian Cup, Abu Dhabi Showdown Week, Formula 1, and the Papal Mass, which allowed for forecasting for subsequent years and expanding the supply of hotel apartments to 9,300 units.

Aldar Properties, who is the leading developer in Abu Dhabi, confirms that the tourism sector of the emirate's economy is growing, having made a statement about its own income for the past year. Based on the report, the company's net income was AED 1.7 billion, which exceeded 2018 figures by 7% and reached record sales of real estate which was 53% more than in 2018. The company's gross profit increased by 30%, and rental income by 8%.

Abu Dhabi is also preparing for Expo 2020, where not only hotels are opening and massive construction of new residential properties is currently underway, but the rental market is also stabilizing, so that the benefit is not only for tourists if the cost starts to drop, but also for investors. That is, the government is doing everything possible to ensure that demand and supply satisfy both the tenant and the landlord.

Abu Dhabi enters a new market with excellent investment proposals and opens up opportunities to attract foreign investors, where key factors are not only its affordability, but also its excellent opportunities for long-term investments.

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Why investing in the Abu Dhabi real estate market is profitable

The attractiveness of residential real estate and expanding the tourism sector

Growth indicators of 4.6% over the past 5 years within the real estate sector have formed a key support in Abu Dhabi's efforts towards a more diversified economy. This means that the emirate's government will now focus not just oil production, but also on strengthening the attractiveness of residential real estate, as well as offering and expanding the tourism sector. This leads to falling real estate prices, but with increasing demand for the emirate itself, will attract good rental returns.

The attractiveness of residential real estate and expanding the tourism sector

Growth indicators of 4.6% over the past 5 years within the real estate sector have formed a key support in Abu Dhabi's efforts towards a more diversified economy. This means that the emirate's government will now focus not just oil production, but also on strengthening the attractiveness of residential real estate, as well as offering and expanding the tourism sector. This leads to falling real estate prices, but with increasing demand for the emirate itself, will attract good rental returns.

Freehold and leasehold zones

Abu Dhabi has reached the same level as Dubai in terms of legislation regarding property ownership rights in the emirate. Freehold and leasehold zones have been introduced, allowing foreigners to purchase real estate with full ownership rights.

Economic incentives

Economic incentives - the Abu Dhabi government and the National Oil Company; Adnoc, have invested a total of over AED 450 billion in a gas production strategy, which will lead to an increase in jobs, which will increase demand for housing.

Economic incentives

Economic incentives - the Abu Dhabi government and the National Oil Company; Adnoc, have invested a total of over AED 450 billion in a gas production strategy, which will lead to an increase in jobs, which will increase demand for housing.

Affordable housing

The main focus is not on elite apartments, but on the "affordable housing" category, i.e. the middle price segment and the "price-quality" ratio. In addition to ready-made housing, you can also buy land to build your own villa. An example of this solution was the successful sale of the Alreeman project, where the sales volume amounted to AED 1.6 billion within just a few days after the launch, according to data from Aldar Properties.

Unique offers from developers

Unique offers from developers, where you can choose extended payment plans, purchase during the construction stages, exemptions on fee payments, and more, attract many buyers. The best examples are the Imkan Nurda and Pixel projects located on Saadiyat and Reem Island, where you can buy off-plan property with the possibility of a post-payment plan over 9 years.

Unique offers from developers

Unique offers from developers, where you can choose extended payment plans, purchase during the construction stages, exemptions on fee payments, and more, attract many buyers. The best examples are the Imkan Nurda and Pixel projects located on Saadiyat and Reem Island, where you can buy off-plan property with the possibility of a post-payment plan over 9 years.

Conclusion

Abu Dhabi enters a new market with excellent investment proposals and opens up opportunities to attract foreign investors, where key factors are not only its affordability, but also its excellent opportunities for long-term investments.

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Marina Mikhalenko

Senior Property Consultant – Metropolitan Premium Properties

location
36-38 Floor, Al Salam Tecom Tower, Dubai, UAE
Metropolitan Expert
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Our experts will help you choose the best option. You will receive the full information about the unit you are interested in and the available layouts

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Marina Mikhalenko

Chief Real Estate Investment Expert at Metropolitan Premium Properties

location
36-38 Floor, Al Salam Tecom Tower, Dubai, UAE
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Consult with an expert

Our experts will help you choose the best option. You will receive the full information about the unit you are interested in and the available layouts

Your request has been received! Please wait for a manager to get back with you.
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By submitting this form you agree to our privacy policy.

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