Real Estate Industry: What You Need to Know
The real estate market in Abu Dhabi has seen tremendous growth over the years, becoming a top destination in the industry and a key component of the economy. To foster this vital sector, the state has implemented facilities to simplify buying and selling real estate for residents both inside and outside the UAE. The capital has become a hub for real estate trading, significantly increasing the total value, and reflecting the latest real estate trends.
In the first quarter of 2023 alone, real estate trading in Abu Dhabi surged by 147% compared to the same period in 2022, reflecting the market's dynamism and potential. In this article, we will explore the Abu Dhabi real estate industry, providing insights and guidance on this thriving sector.
Encouraging Real Estate Investment
As part of its efforts to boost the real estate sector, the UAE government has implemented various initiatives and legislative changes to facilitate foreign investment in the industry. Some of the facilities provided to foreigners include:
● Allowing ownership of properties for sale in Abu Dhabi within the emirate, including apartments and residential real estate units.
● Allocating freehold areas like Reem Island and Saadiyat Island to encourage real estate investment companies.
● Offering tax benefits and golden residency options for foreign owners.
● Creating acquisition methods for expatriates, including ownership, sharing, usufruct, long-term leasing, and other development efforts.
In addition to other efforts made to develop work in real estate, such as:
● Developing infrastructure and ensuring quality service.
● Establishing a robust transportation network within the emirate and to/from Dubai.
● Launching the first professional ethics guide for real estate workers.
● Ensuring high returns from land and residential sales and rentals.
● Implementing legal protections for investors, agents, and buyers.
Relationship Between Real Estate Investment and Golden Residency
Golden residency can be obtained through real estate investments for a renewable five-year period, subject to the following conditions:
● Providing proof of residency and living in the country.
● Owning one or more properties in the UAE worth at least 2 million dirhams, verified by the real estate registration department.
Features of Golden Residency Visa:
Golden residency, issued for either 5 or 10 years, provides the holder with numerous benefits of investing in UAE real estate, including:
● A six-month multiple-entry visa for completing residency procedures.
● Permission to remain outside the country for more than six months.
● No need for a UAE guarantor.
● Residency permits for the holder's family, including spouse and children.
● No restrictions on hiring foreign workers.
● Continuation of the family's stay, even if the provider dies, until the residency period concludes.
Trading Volume in Abu Dhabi's Real Estate Sector
The real estate industry has recently seen remarkable growth, counterbalancing the recession and losses brought on by the coronavirus pandemic in 2020. In 2022, real estate transactions grew by 8.5% from the previous year, reaching a total of 77.6 billion dirhams, and this upward trend continues into 2023. Abu Dhabi alone recorded a 67% increase in real estate transactions in the first quarter compared to the same period in 2022.
According to a report by JLL, a company specialising in global real estate market assessment, Abu Dhabi ranked second in development rates. It also advanced in the transparency index, achieving 2.98 points, reflecting its improved performance in the real estate industry.
The Department of Municipalities and Transport in Abu Dhabi revealed that from the beginning of 2023 until mid-year, there were 10,557 real estate transactions, including purchases, sales, and mortgages of land, buildings, and residential units, totalling over 46 billion dirhams.
In transaction values within the emirate, Saadiyat Island led with 3 billion dirhams, followed by Yas Island with 2.6 billion, Reem Island with 2.4 billion, Jubail Island with 1.5 billion, and Shamkha City, also with 1.5 billion dirhams.
These impressive numbers and the tremendous development in the real estate sector encourage more investors to engage in the UAE's real estate investment field.
Steps to Buy Property in Abu Dhabi
As we learned earlier, the increasing sales volume in the real estate sector in the emirate has driven more foreigners to buy property. Here are the steps to purchase property in Abu Dhabi:
● Determine the type of property and your intention to buy, whether for living or investment.
● Set a budget, either from personal funds or a real estate loan.
● Ensure compliance with legal procedures for foreigners.
● Collaborate with a trusted real estate agent to complete the process.
● Agree on the selling price and the agent's commission.
● Obtain approval for purchase if required by some residential complexes.
● Pay registration fees and sign contracts.
● Transfer the property to the new owner's name.
New Projects by Aldar
Despite the growth, investor numbers, and competition in the real estate industry, we are advancing steadily towards further expansion. We began 2023 with significant urban projects, as Aldar announced four diverse initiatives in Abu Dhabi:
1. Sustainable City project on Yas Island.
2. Lighthouse Living project on Saadiyat Island.
3. Reeman Living project in the Shamkha area.
4. The Source project in the Saadiyat Grove complex.
These projects, accessible to both Emirati citizens and foreign residents, offer various residential units such as apartments, penthouses, and townhouses. Characterised by unique designs, luxurious interiors, and diverse natural vistas, they provide the comfort and tranquillity sought in a home. We are your gateway to homeownership or successful investment in Abu Dhabi.