5 reasons why you should invest in Abu Dhabi effects
17th Jan 2023
Reading Time: 3 minutes
Abu Dhabi is the capital of the United Arab Emirates, where the primary economic resource is oil, why the emirate can be attractive for investors – not only the absence of harsh winters and eternal summer but also because of the opportunity to invest in a budding real estate market and property for sale in Abu Dhabi sea view, where the emphasis is not only on a large number of proposals but also on the development of all sectors of the economy to create a stable investment environment with obtaining the maximum profit.
Economic beauty of Abu Dhabi
It is necessary to consider the benefits from investments in the following directions: buying real estate for rent or subsequent resale to receive income from the difference in invested funds. And you can buy, rent, and then resell.
If not bought off-plan, these long-term assets can cause revenue within a few months after the purchase. You can purchase property in Abu Dhabi the same way as in Dubai – at once with the entire amount, divided by payment at the developers’ suggestion, or with a mortgage.
Like in neighboring Dubai, the emirate’s territory is divided into zones with the free sale, limited, and where real estate cannot be bought.
The government of Abu Dhabi is doing everything possible to revive the emirate’s real estate market to make it more attractive to foreigners.
Therefore, speaking about investments, it is necessary to take into account not only the real estate sector itself but also what is the economic benefit of the tourism segment.
Why it is profitable to invest in the Abu Dhabi real estate market?
The main reasons:
- Comfortable conditions for owning a real gift. Abu Dhabi has achieved the same status as Dubai in times of ruling concerning property rights in the emirate. Freehold and leasehold zones have been presented, permitting foreigners to buy real estate fully.
- High demand for real estate. Economic Incentives – The Government of Abu Dhabi and National Oil Company Adnoc have invested more than AED450bn in total in a gas extraction strategy that will result in jobs, at the very least, increasing demand for housing.
- A broad spectrum of properties. The primary emphasis is not on luxury flats but on the type of “cheap housing,” i.e., medium price component and price-quality balance. In addition to ready-made housing, you can buy land to build your villa. An example of such a decision was the successful sale of the Alreeman project, where in a few days after the launch, sales of 1.6 billion dirhams were made, according to Aldar Properties.
- Prospects for the development of the tourism sector. A 4.6% growth rate over the ex 5 years in the real estate sector constitutes a key post in Abu Dhabi’s quest for a more diversified economy. This means that the emirate’s government will now focus on oil production, enhance the attractiveness of residential real estate requests, and boost tourism. Property prices are dropping, but at the same time, the need for the emirate itself will grow, which will attract good rental yields.
- Unique offers from developers. Unique offers from developers, where you can choose from advanced payment plans, purchase at the stage of construction, tax relief, and more. Imkan Nurda and Pixel projects, located on the islands of Saadiyat and Reem Island, are a striking example, where it is proposed to buy off-plan real estate with the possibility of post-payment for 9 years and independently equip the purchased property.
Ways to buy property in Abu Dhabi
Currently, alien investors have access to all options for acquiring real estate in the capital of the UAE: to buy housing in the primary market directly from the developer, in the secondary market, and to apply for a mortgage at a local bank, even without being a resident of the UAE:
- purchase in the primary market;
- acquisition of real estate in the secondary market;
- buying real estate with a mortgage.
Property in Abu Dhabi
Use the services of the Emirates.Estate website. You will have the possibility to compare prices for properties in various places and find the best option.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.