Abu Dhabi is the most affluent emirate in the UAE, with solvent residents and high rental prices.
It contains about 90% of the country’s oil reserves. Therefore, property for sale by the sea in Abu Dhabi, the country’s business center, can be profitably rented out, just like commercial real estate.
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Benefits of Buying Property in Abu Dhabi
Acquisition of real estate in the capital of the United Arab Emirates has the following advantages:
- recovery on acquisition in Abu Dhabi is 7-8% per annum since lodging and retail belongings are in demand in terms of rent among permanent and visiting residents;
- thanks to the 700-kilometer coastline, gorgeous beaches, and many islands, Abu Dhabi has created ideal conditions for the development of tourism;
- in the emirate, there are land plots available for development at a relatively low price – from 500 USD per square meter;
- the opportunity to obtain a residence permit for 5 years to purchase real estate worth 5 million dirhams (1,361,322 USD) or for ten years with an object value of 10 million (2,722,644 USD).
Purchase Process
The process for buying a retail property or house in Abu Dhabi consists of the subsequent steps:
- studying the real estate market, selecting an option. You can search on your own or contact a realtor. The buyer delivers the benefits of a real estate agent (1-3% of the object’s value);
- obtaining a license from the developer for implementation. If an intermediary sells the object, he must ask the construction outfit for permission to sell it;
- signing a sales contract. The contract is drawn up by the seller or real estate agency;
- depositing the amount of 10% of the total price of the object. To do this, the buyer, having personally visited Abu Dhabi, draws up a check and passes it to the seller in the presence of an employee of the Land Department;
- re-registration of real estate in your name at the Land Department. Suppose we are talking about buying on the secondary market. In that case, you must additionally pay for the registration of the transfer of ownership in the amount of 2% of the object’s price. For re-registration, the passports of the buyer and seller, a certificate of registration of the thing, a permit for sale, and a contract of sale are required.
Tourism in Abu Dhabi
The positive dynamics of growth and the hotel sector of Abu Dhabi continued.
The demand for the capital’s hotels increased thanks to events such as the Olympics, AFC Asian Cup, Abu Dhabi Showdown Week, Formula 1, and the Papal Mass, which allowed building a forecast for subsequent years and expanding the supply of hotel apartments by 9300 units.
Aldar Properties, Abu Dhabi’s leading real estate developer, confirms that the emirate’s tourism industry is growing with an announcement of its earnings for the past year.
Based on the report, net income was AED 1.7 billion, up 7% from 2018 and hitting record real estate sales figures of 53% more. The company’s gross profit increased by 30% and rental income by 8%.
In Abu Dhabi not only hotels are opening but large-scale development of new residential facilities is underway, but the rental market is stabilizing so that not only tourists will benefit if prices start to fall, but also investors.
The government is doing everything possible to ensure that demand and supply suit both parties – the tenant and the landlord.
Thus, Abu Dhabi enters a new market with excellent investment opportunities and opens up opportunities to attract foreign investors, where the key points are not only affordability but also a great long-term investment opportunity.
Property in Abu Dhabi
You will have the possibility to compare prices for properties in various places and find the best option.
