Abu Dhabi Real Estate Market: Over the past few years, the Abu Dhabi real estate market has grown rapidly, leading to increased investment opportunities for many. With such a large number of properties available in the market, investing in Abu Dhabi’s real estate market has become a popular option for many.
Wadah mentions that instead of keeping money in the bank, putting it towards property investment is an ideal option because you get a valuable return on investment (ROI).
But before delays in the world of property investment, Wada explained that there are some basic steps that investors need to take to ensure profitable returns.
One of the first things to emphasize is the importance of understanding the market. Investors should have an understanding of current and future market conditions, as well as whether the area has the potential to attract tourists and renters.
These two aspects work hand-in-hand to ensure that you are investing in profitable property in Abu Dhabi. Investors should move forward for three to four years and analyze whether the area they are investing in has the potential to attract renters or tourists, which increases the value of the property in the long-term ROI.
Some of the major factors that first-time property investors should take into consideration when considering investing in the property market in Abu Dhabi.
- Be aware of current market conditions – Market reports such as Beat’s annual market reports are a great place to start if you want to understand the current market conditions and trends in property prices.You will be able to know which places can be seen along with the huge drop in property prices, and which areas provide good ROI.
- Choose the right location – More than the type of property, investors should look at the location in which they are investing. Location inevitably affects the value of the property.
- Get your finances in order – Investing in property requires a significant amount of finance. Make sure that you can manage your finances when purchasing a property.
With these points in mind, investors can make the right choice when investing in Abu Dhabi.
JUST KNOW ABOUT Abu Dhabi Real Estate Market:
Law No. 19 of 2005 regarding the regulation of the real estate sector in Abu Dhabi allows migrants to own property only through four main systems, not land and apartments:
Ownership
Migrants are allowed to own works owned by residential units for 99 years, which allows them to dispose of them entirely to purchase apartments and villas.
Mustafa
Renewable, by agreement of the parties for a similar period, may hold dwelling units for 50 years. The Masada contract contracts the owner to enjoy the use, construction, or alteration of the property within a specified period.
To bear fruit
Migrants can hold residential units for up to 99 years. The usury contract gives the owner the right to enjoy being able to use the property and its facilities to convert it.
Long term lease
A long-term lease is granted for an initial period, of not less than 25 years.
The area designated for ownership in Abu Dhabi
There are nine areas in Abu Dhabi, where foreigners are allowed to own immovable property. They are: Yes Island, Saadiyat, Reem, Mariya, Lulu, Al Raha Beach, Sah Al Sedairah, Al Reef and Masdar City.
An amended provision in Abu Dhabi Real Estate Law
In April 2019, an amendment was made to the Abu Dhabi Real Estate Act which allows foreigners to own real estate in the investment areas of Abu Dhabi. The new law sets out the amendments to Articles 3 and 4 of the above law.
Article 3 (i) sets out the rights to own property which is limited to three categories. They:
- Civilian, natural, or legal person
- Public holding companies where ownership with non-citizens does not exceed 49 percent
- As any person, whose decision is issued by the Abu Dhabi Crown Prince or the President of the Executive Council.
- Article 3 (ii) states that non-UAE citizens, natural or legal persons, have the right to own and acquire all original and in-kind rights in real estate properties located within investment areas.
- Article 4 states that the holders of a ‘usufruct’ or ‘musataha’ for more than 10 years have the right to dispose of the property, without the consent of the zamindar, including the right of the mortgage. However, the zamindar cannot mortgage the property except with the consent of the usurper or masala holder. In both cases, the parties may agree otherwise.
Real estate market prospects in ABU DHABI
When asked about the difference between Dubai and Abu Dhabi’s property market, Waddah explains that the main difference between the two is that Dubai is a metropolitan city that attracts tourists, which has attracted investors from around the world.
In Abu Dhabi is slightly different, rather than an external interest, with the city having a high concentration of investing locals.
However, Wadah believes that the expo 2020 will change that – it will help enhance the status of the Abu Dhabi property market and increase ROI on properties.
As you can see, the Abu Dhabi property market is flourishing and as property prices are declining, the Abu Dhabi Market Report now is the ideal time to invest.
If you are planning to invest in the property market of Abu Dhabi, be sure to liaise with Middle East properties nationwide!
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