In 2021, Abu Dhabi's property market showed signs of recovery and saw a gradual increase in prices. Much of the increase in value is due to a change in demand pattern, after a long period of self-isolation and other restrictions, homeowners and tenants have started to prefer larger homes with an abundance of open space.
Currently, residential property has the highest yields. The major share of transactions is in long-term rentals, while the short-term rental market, on the contrary, is very scarce. Due to the popularity of Abu Dhabi as a promising tourist and business destination, the short-term rental sector is expected to expand rapidly for the foreseeable future. According to Asteco, rents for residential and commercial properties are expected to rise further by 7-9%.
According to a study by the risk management and consulting company Willis Towers Watson, employers in the United Arab Emirate’s are planning to increase their employees' salaries by an average of 4% in 2022. Provided mortgage interest rates remain low, this will create additional demand and could be an additional driver for further increases in the emirate's property price levels.
The development of the housing sector is also actively encouraged by the emirate's government. According to the master development plan, over 28,000 new properties are scheduled to be completed in Abu Dhabi by 2023. Foreign investors can buy property in one of the emirate's 15 freehold districts.
If you are considering Abu Dhabi as a long-term investment option, the best decision is to contact a qualified real estate agent. Metropolitan Capital Real Estate LLC
offers you a full range of intermediary and advisory services and our employees have extensive experience in working with both private investors and large corporate clients. The professionals in our office will help you find the best option for buying or renting a property and will provide full support at all stages of the transaction. Metropolitan Capital Real Estate LLC is the official representative of the emirate's largest developers, such as Aldar Properties and IMKAN.