Real estate is one of the UAE’s most important business drivers. With the help of modernising real estate regulations, the UAE real estate industry has risen dramatically during the last ten years.
The two most popular emirates for real estate purchases are now Dubai and Abu Dhabi. Let us explain foreigners’ advantages while purchasing real estate in Abu Dhabi.
Process
One of the most compelling reasons to invest in Abu Dhabi real estate is the city’s proximity to the United Arab Emirates. Foreigners from all over the world like the process’s simplicity and transparency. All paperwork is written so that even a non-professional can grasp it, and the methods are straightforward. Every transaction is under the jurisdiction of the government. The presence of many large developer organisations in the real estate sector further demonstrates its trustworthiness. Real estate is quite diversified, and the number of properties available is always expanding. The majority of the structures are less than five years old, making them stand out among Abu Dhabi’s older structures.
In addition to a large selection of real estate, the Abu Dhabi authorities are assisting their foreign clients – property rights legislation is being simplified. Key points include the expansion of the freehold zone in the emirate and issuing the Golden Card, which provides entrepreneurs, investors, scientists, and others with permanent residence for ten years.
Profitability
A significant component is a return on investment. Analysts estimate that net income from real estate investments in Dubai or Abu Dhabi might be as high as 7% per year. It is a very good signal by international standards since hardly every bank in the world can brag of such a high proportion of profit for its depositors. At the same time, investing in real estate benefits you in two ways: first, you get future rental income, and second, the property’s value increases year after year. Many people think of real estate in Abu Dhabi as an investment in two ways: you can rent it out for a few years and then sell it for a profit.
In any event, if not purchased off-plan, this is a long-term investment that may yield income within a few months of purchase. You may purchase real estate in Abu Dhabi by paying in full, in instalments, or with a mortgage.
There is no rent cap.
Every quarter, the cost of renting in Abu Dhabi rises. There is no rent ceiling in Abu Dhabi, and there is no rent calculation principle. If the market supports it, owners can set any price they wish. As a result, owners may take full benefit of the market’s price increase.
Legal safeguards
The UAE’s legislative framework for regulating relationships in the fast-growing real estate business is primarily concerned with safeguarding the rights of homeowners. From a legal standpoint, drafting a lease agreement is also simple; the state maintains a close eye on the situation. It will not be difficult to evict the renters if they do not please the owner. The most important thing is to warn them ahead of time.
Furthermore, Abu Dhabi has caught up to Dubai regarding regulations governing foreigners’ rights to purchase real estate in the emirate. Freehold and leasehold zones have been formed, allowing foreigners to purchase full real estate ownership.
Stability
Like any other investment, the property had ups and downs, but it is still a reliable asset. After the recession, real estate and rental prices have rebounded significantly, and massive oil income and government reserves provide a bright future for the economy and investment.
Perspectives for the future
In Abu Dhabi, property and rental prices are tightly linked to population and supply. The government is now planning a big infrastructure expansion. The new “2030” growth plan calls for additional employment and more people to the UAE. Because the rate of new property building in Abu Dhabi does not keep pace with the number of people relocating here, demand is nearly certain.
Various properties are available.
The major focus is on “affordable housing,” including the intermediate price segment and price-quality ratio. You can acquire land on which to develop your villa in addition to finished housing.
What should a buyer do when buying a new house in the UAE?
- Make sure you have enough money to finish the purchase.
- Get a letter of no objection from the developer of the property you want to buy.
- Determine the seller’s true identity.
- Check with the appropriate land department to see if the developer and the project are both registered.
- Check for third-party encumbrances on this property.
- Between the parties, a suitable agreement must be executed.
- It is vital to determine if the property is “leasehold” or “freehold,” as well as whether it is completed or under development. The processes and expenses for registering this property in the buyer’s name must also be planned.
To summarise, everybody who understands real estate would tell you that now is the best moment to buy property for sale in Abu Dhabi since its value increases virtually daily. You may also take out a mortgage on a home, rent it out, and make a small profit each month. When it is still under development, purchasing real estate is especially advantageous since it saves money on acquisition and consequently increases earnings.
