Real estate is one of the key commercial drivers of the UAE. Over the past 10 years, the UAE real estate market has grown significantly with the support of reforming real estate legislation.
Dubai and Abu Dhabi are currently the two leading emirates in real estate purchases. Let us tell you about the benefits expats get when buying a property in Abu Dhabi.
Dubai and Abu Dhabi are currently the two leading emirates in real estate purchases. Let us tell you about the benefits expats get when buying a property in Abu Dhabi.
Process
One of the main reasons for buying real estate in Abu Dhabi foreigners all over the world consider the simplicity and transparency of the process. All documentation is designed in such a way that even an unprofessional person will not have problems with understanding it, the procedures are simple and clear. Government authorities control every transaction. A large number of big developer companies in the real estate market also indicates it's reliability. Real estate is very diverse and its number is constantly increasing. Most of the buildings are less than five years old and stand out from the rest of the older buildings in Abu Dhabi.
In addition to a large selection of real estate, the Abu Dhabi authorities are helping their foreign clients - the legislation on property rights is being simplified, and the key points are the expansion of the freehold zone in the emirate, the issuance of the Golden Card, which provides permanent residence for 10 years to entrepreneurs, investors, scientists, etc.
In addition to a large selection of real estate, the Abu Dhabi authorities are helping their foreign clients - the legislation on property rights is being simplified, and the key points are the expansion of the freehold zone in the emirate, the issuance of the Golden Card, which provides permanent residence for 10 years to entrepreneurs, investors, scientists, etc.
Profitability
The return on investment is also an important factor. According to analysts, the net income from investments in real estate in Dubai or Abu Dhabi could be 7% per year. By world standards, this is a very good indicator, since not every bank in the world can boast of such a percentage of profit for its depositors. At the same time, by investing in real estate, you win twice: firstly, the potential rental income, and secondly, the value of the real estate itself grows from year to year. Many consider real estate in Abu Dhabi as an investment in two ways: for several years you can receive rental income, and then you can also profitably sell the object.
In any case, this is a long-term investment that can generate income in a couple of months after the purchase, if it is not bought off-plan.
You can buy real estate in Abu Dhabi paying the whole amount at once, by several payments, or with a mortgage.
In any case, this is a long-term investment that can generate income in a couple of months after the purchase, if it is not bought off-plan.
You can buy real estate in Abu Dhabi paying the whole amount at once, by several payments, or with a mortgage.
No rent limit
Rentals in Abu Dhabi are increasing every quarter. In Abu Dhabi there is no rent limit and no principle of calculating rent. Owners can set whatever price they want if the market supports it. Therefore, owners can take full advantage of the rise in prices in the market.
Legal protection
The legal framework in the field of regulating relations of the rapidly developing real estate industry in the UAE is more focused on protecting the interests of homeowners. It is also easy to draw up a lease agreement from a legal point of view; the state keeps its finger on the pulse here. If the tenants do not satisfy the owner, it will not be difficult to evict them. The main thing is to warn them in advance.
In addition, Abu Dhabi has reached the same level as Dubai in terms of legislation regarding the rights of foreigners to own real estate in the emirate. Freehold and leasehold zones were established, which allows foreigners to buy real estate in full ownership.
In addition, Abu Dhabi has reached the same level as Dubai in terms of legislation regarding the rights of foreigners to own real estate in the emirate. Freehold and leasehold zones were established, which allows foreigners to buy real estate in full ownership.
Stability
The property went through a rise and fall like any other investment, but it still remains a stable asset. Real estate and rental prices have recovered well after the crisis, and large oil revenues and government reserves guarantee a good future for the economy and investment.
Future prospects
Property and rental prices in Abu Dhabi are closely related to population and supply. The government is currently planning a major expansion in infrastructure. The new development plan "2030" implies the creation of new jobs and attracting more people to the UAE. The pace of new housing construction in Abu Dhabi is not increasing as rapidly as the rate of people moving here, so demand is almost guaranteed.
Rent payment
Most often, rent in Abu Dhabi is paid for a year in advance with one or two checks. This provides serious security for the owners.
Wide range of properties
The main focus is not on elite apartments, but on the category of "affordable housing", i.e. middle price segment and price-quality ratio. In addition to finished housing, you can also buy land where you can build your villa.
UAE is a promising state
Not a single skeptic would even argue with this. If earlier evil tongues talked that the development of the United Arab Emirates would end with the last drop of oil extracted, now this opinion is disappearing. The state is developing not only because of oil. Trade and tourism occupy a huge share in the country's budget.
Growth of 4.6% over the past 5 years in the real estate sector form a key pillar in Abu Dhabi's aim, which is a more diversified economy. This means that now the government of the emirate will focus not only on oil production, but also on strengthening the attractiveness of residential property offers and expanding the tourism sector. It turns out that real estate prices are falling, but at the same time demand for the emirate itself will grow, which will attract a good rental yield.
Another plus in favor of the UAE is that the country constantly strives to be ahead of the rest of the planet, as evidenced by numerous achievements and records in various fields. Numerous government programs are aimed at improving the quality of life of the population.
Growth of 4.6% over the past 5 years in the real estate sector form a key pillar in Abu Dhabi's aim, which is a more diversified economy. This means that now the government of the emirate will focus not only on oil production, but also on strengthening the attractiveness of residential property offers and expanding the tourism sector. It turns out that real estate prices are falling, but at the same time demand for the emirate itself will grow, which will attract a good rental yield.
Another plus in favor of the UAE is that the country constantly strives to be ahead of the rest of the planet, as evidenced by numerous achievements and records in various fields. Numerous government programs are aimed at improving the quality of life of the population.
What should a buyer do when buying a property in the UAE?
- Provide adequate funding to complete the transaction.
- Receive a no-objection letter from the developer of the property to be purchased.
- Find out the identity of the actual seller.
- Check that the developer and the project are registered in the respective land department.
- Check the encumbrances of this property by third parties.
- A corresponding agreement must be signed between the parties.
- It is necessary to check the status of the property, whether it is "leasehold" or "freehold", whether it is finished or under construction. It is also necessary to plan the procedures and fees for registering this property in the buyer's name.
Summing up, every person who understands real estate will tell you for sure: now is the ideal time to buy property in Abu Dhabi, as its value is growing almost every day. You can also take property on a mortgage, rent it out, and even have a little profit every month. It is especially beneficial to purchase real estate at the stage of construction - this will significantly save on acquisition and thus increase profits.