06.04.2024 19.04.2024 2847 0 0
The United Arab Emirates remains one of the most sought-after destinations for foreign investors. Real estate in Dubai is not the only possible option. Abu Dhabi, the capital of the UAE, is an equally successful emirate. It is famous for its high standard of living, modern architecture and impressive economic development. As a global center of commerce and culture, Abu Dhabi offers a sustainable real estate market with many attractive projects, making the city a key point for investment. Let’s look at 8 facts about the emirate that will be of interest to those who are planning to buy an apartment.
A comfortable climate
The Emirate of Abu Dhabi is characterized by a hot desert climate, offering life under warm and sunny skies throughout the year. The amount of precipitation is minimal. The hottest and wettest period lasts from June to September, when the thermometer often rises above 41 °C. The rest of the time, the climate is quite mild and pleasant. The average temperature during the year corresponds to about 27.9 °C. For investors tired of the European slush, such conditions become another reason to move to the UAE.
High quality of life
Abu Dhabi was ranked as one of the top 20 cities to move to in 2021 by the InterNations Expat Insider survey, ranking 16th. The report highlights that the UAE provides an excellent quality of life as well as a high level of security, with a score of 93% in this category. With a thriving economy, job opportunities and a wealth of attractions, Abu Dhabi has become a sought-after destination among expats.
Great employment and business opportunities
Abu Dhabi, the leading emirate of the UAE, is home to approximately 95% of the country’s total oil reserves, with almost 55% of the gross domestic product here coming from the hydrocarbon sector.
The Abu Dhabi Economic Vision 2030 initiative opens up numerous opportunities for international and local investors in a variety of fields. This long-term plan is aimed at transforming and developing the Emirate’s economy and includes the following objectives:
- Improvement and scaling of infrastructure, as well as expansion of the city’s transport networks.
- Reducing the share of the oil and gas sector in GDP to 36% by 2030.
- Diversify the economy by creating business opportunities in other emerging industries.
- Optimization of management.
- Strengthening environmental sustainability.
- Development of the Emirate’s social and human resources.
Many companies are opening their representative offices in the UAE capital, providing extensive employment opportunities for both local residents and foreign specialists. Among the leading corporations based in the emirate, Deloitte, PwC, Accenture, KPMG, Schlumberger, Honeywell and others can be distinguished.
Due to the stable pace of economic development and wide employment opportunities, expats often choose Abu Dhabi to buy residential real estate.
The government’s loyal policy towards expats
The UAE is friendly not only to foreign investments, but also to foreigners. Despite the fact that it is quite difficult to obtain citizenship of this state, resident visas are provided in the Emirates, which allow you to live in the country. The duration of validity depends on the type of visa. Such an opportunity is also provided for real estate investors. It is enough to purchase an apartment or a house in areas that are available for foreigners to buy housing. At the same time, the value of the property must exceed 2 million AED ($544,000).
Variety of offers
The Emirate is actively developing and offers all the popular types of real estate, from budget apartments to premium villas. The housing is of high quality and fully meets the demanding requirements of buyers for comfort. At the same time, investors are offered both ready-made and under construction facilities, which makes the choice even wider.
Housing prices are still affordable
According to the latest data from the Federal Office for Competitiveness and Statistics (FCSA), the average cost of buying a home in Abu Dhabi is $3,550 per square meter.
The price difference can be significant: a luxury penthouse in the areas of Al-Rifa or Al-Samha, as a rule, is more expensive than a villa on the island of Yas. But even in this case, the cost is more attractive than in many other cities around the world. For comparison, the price per square meter in Abu Dhabi is 5.4 times lower than housing in New York, and 46% cheaper than apartments in the residential complex in Dubai.
The highest cost is usually found on Saadiyat Island and Al-Raha Beach, while more affordable options can be found in the areas of Al-Shamha, Al-Watba and the city of Mohammed Bin Zayed.
High investment potential
The real estate market in Abu Dhabi is booming due to the high return on investment, reaching 10-11%. These figures are not inferior to the payback rate of apartments in Dubai. Among the areas offering the most attractive returns are Al Rif with 7.75%, Al Rim Island with 6.48% and Masdar City with 6.98%.
A promising market
In 2023, over 14,000 real estate transactions worth 44 billion AED ($11.98 billion) were concluded in Abu Dhabi, including more than 10,000 unplanned projects totaling 35.6 billion AED ($9.7 billion). Compared to the previous year, the number of signed purchase and sale agreements with unplanned real estate increased by 95%, and their value increased by 174%.
For comparison. The number of unplanned real estate transactions was 2,734 in 2021, reached 5,095 in 2022 and 10,000 in 2023. At the same time, the number of new projects under construction continues to grow. It is predicted that in 2024, the demand for apartments in new buildings under construction in Abu Dhabi will remain high due to the increasing attractiveness of the emirate for both living and business.
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