Due to its stability, flexibility and affordability, the UAE real estate market has evolved into a leading overseas investment destination over the years. The main advantage of investing in real estate in Abu Dhabi is that it will not be affected by inflation and can generate an annual income of between 7% and 12%. In Abu Dhabi, for example, average residential property prices rose by 2.2% between January and August 2021, according to a CBRE report. According to the Numbeo website, the selling price per 1 sq. ft in some of the central parts of the emirate is AED 1,086 (USD 295), while in London, GB this is USD 1,562. Outside of the city center it drops to USD 751.
Several strategies are available when considering buying property as an investment in Abu Dhabi:
- Buying off-plan properties – you buy directly from the developer, under convenient payment schemes broken down into certain periods. The financial burden is lower than when buying a ready-made home, as is the cost itself. In addition, the price of properties only increases as the construction stages are completed. Once construction is complete, the investor can either resell the asset or start renting it out and start earning a steady, passive income.
- Buying a ready-made property allows you to start renting out the unit immediately and earn an income. But it is worth bearing in mind that the sale price is higher compared to off-plan properties, but you can apply for a mortgage and use the rental money to cover some of the costs.
In addition to residential properties, investments in commercial buildings such as hotels, office buildings and warehouses are also in great demand. Here leases are concluded for longer terms (anywhere from 3–5 years or more) and the return on investment is much higher – up to 15%.
It is important to keep in mind that investing in property in Abu Dhabi
, and the UAE in general, can be quite a complicated process, especially if you are unfamiliar with the jurisdiction and don't have the time to research the Emirates property market. In this case, we at Metropolitan Capital Real Estate LLC
are here to help you find and select an investment asset that will perfectly match your requirements, providing you with full support at all stages of the transaction, including assistance in obtaining a mortgage and the further sale of your asset. Our brokers are well-versed in the UAE real estate market and legislation, which will save you time and money when looking for reliable tenants in the future.