Tourism and real estate are considered key commercial drivers of the UAE economy. Over the past few years, the country has shown significant growth in the real estate market, all thanks to reforming real estate legislation and government initiatives. The real estate market of Abu Dhabi has also evolved drastically, opening several investment opportunities for many. With the continuous growth and array of properties, capital has become a popular choice for real estate investment.
If you are also planning to invest in Abu Dhabi’s real estate market, we have compiled a list of benefits of buying a property in Abu Dhabi as an expat.
Benefits of Buying a Property in Abu Dhabi as an Expat
Buying a property is one of the crucial decisions to make. This is why it is important to know the key benefits before you buy a property in Abu Dhabi as an expat.
Smooth Buying Procedure
One of the best things about buying a property as an expat in Abu Dhabi is the transparency and simplicity of the procedure.
Also, entrepreneurs, investors or scientists with a Golden Card can get a permanent residence for 10 years. However, always ensure the project developer you are considering is registered with the Department of Economic Development in Abu Dhabi.
The UAE Golden Visa scheme is usually preferred for investors who want to immigrate and invest in the UAE. Potential investors who are interested need to invest at least AED 10 million to become eligible for a 10-year licence. However, if the property is worth AED 5 million you get a 5-year permit. The investment should be made for at least three years. Moreover, entrepreneurs with at least AED 500,000 investment get a 5-year permit.
Moreover, make sure your purchase agreement has a date of delivery and a compensation clause in case the project is not complete by the due date.
Return on Investment
Another major benefit of buying a property in Abu Dhabi as an expat is profitability. The estimated profit from buying property in Abu Dhabi is around 7% depending on the area you choose to purchase. However, you can invest in established or upcoming projects to make sure your investment is profitable.
High Rental Yields
High rental return is one of the key benefits investors can get while owning a property in Abu Dhabi. The rentals of property in Abu Dhabi are usually paid in advance for a year with one or two cheques. Besides, you can also sell out the property and enjoy a high profit.
Legal Protection
The rapidly developing real estate industry in the UAE also focuses on the protection of the interests of homeowners. The government has kept both tenants’ and homeowners’ rights safe to avoid any future discrepancies. However, if you are a homeowner you need to give at least 60 days before the tenancy agreement expires. As per the Abu Dhabi rental law legislation, the landlord also retains the right to refuse the tenancy contract renewal.
Future Prospects
With the increase in property demand in Abu Dhabi, the authorities are now focusing on the major expansion of infrastructure. As per the new 2030 plan, the government will plan to build new residential communities to attract more people to Abu Dhabi.
With the completion of some of the most anticipated leisure and cultural destinations, Abu Dhabi officials aim to create more job opportunities which ultimately increase population and property demand year on year. The projects include Sheikh Zayed National Museum, Guggenheim Abu Dhabi, Al Hudayriat Island, Al Qana and Yas Bay.
Safe and Secure Environment
The UAE is considered one of the safest countries around the globe. The capital of the country – Abu Dhabi – further accolades of its own. Since Abu Dhabi is one of the popular tourist attractions, the government ensures maximum security for both tourists and residentials.
Wide Range of Properties
Investors can find both furnished and unfurnished properties in Abu Dhabi. From villas to studio apartments – you can find a variety of options to choose from. According to Law No. 19 of 2005 Concerning the Regulation of the Real Estate Sector in Abu Dhabi, expats can only own property in the form of apartments and floors.
Where Can Expats Buy a Property in Abu Dhabi
According to Articles 3 (i) of Law No. 19 of 2005 Concerning the Regulation of the Real Estate Sector, the expats’ rights to buying property are limited to the following three categories.
“Article 3 (i) stipulates the rights to own property are limited to three categories the first being Emirati citizens, natural or legal persons, the second includes public holding companies with ownership not exceeding 49% non-nationals, or the third as any person to whom a decision is issued by the Abu Dhabi Crown Prince or the President of the Executive Council.
Article 3 (ii) stipulates that non-UAE nationals, natural or legal persons, shall have the right to own and acquire all original and in-kind rights in real estate properties located within investment areas.”
Explaining it further, UAE expats of any nationality can buy these top freehold areas in Abu Dhabi:
- Yas Island
- Saadiyat Island
- Reem
- Al Raha Beach
- Sayh Al Sedairah
- Al Reef
- Mariya
- Lulu
- Masdar City
The amendment was made in April 2019. The decision was made to open more investment opportunities and to make Abu Dhabi a popular investment destination. For more details, check out these Abu Dhabi property laws for expats.
With this, we end our list of the benefits of buying a property in Abu Dhabi as an expat. You can browse through the listings of apartments for sale in Abu Dhabi and find your new investment opportunity. Besides, if you are an expat and planning to buy a property in a different Emirate then don’t forget to check the rules for buying a property as an expat in the UAE.
Stay tuned to the UAE’s property blog to know more about investment opportunities in Abu Dhabi.
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