Advantages of Investing in Property in Abu Dhabi
Are you a prospective real estate investor looking for the best city in the Middle East to invest in either a commercial or rental property? Abu Dhabi should be your ultimate city of choice. Some of the key factors that have made Abu Dhabi the most attractive investment destination in the Middle East include; being strategically positioned as the capital of the United Arab Emirates (UAE), booming economic growth, modern infrastructure, diverse population, and investor-friendly regulations.
Below are some of the key benefits of investing in the Abu Dhabi real estate market.
1. Better Return on Investment (ROI)
A vibrant Abu Dhabi real estate market has proven to deliver high and predictable returns on investment to both local and international investors who buy property in Abu Dhabi.
Residential and luxury properties located in high-end zones such as Saadiyat Island, Yas Island, Al Reem Island, and Al Reef attract annual rental yields of 8-9%.
There are many well-established and upcoming real estate investment projects in Abu Dhabi that new investors can consider with the confidence of getting better returns on investments (ROI).
2. Investor-Friendly Legal Framework
Abu Dhabi has a robust legal protection framework that inspires investors’ confidence. For instance, Law No.19 of 2005 provides clear statutory real estate property ownership rights that protect prospective real estate investors both local and expatriates.
For instance, real estate investors are guaranteed a valid legal title document for every property purchased.
Other legal provisions ensure both parties are protected in case of any breach of contract or cancellation. Clear compensation guidelines are also outlined.
3. Better Rental Incomes
Rental prices for residential properties in Abu Dhabi have maintained a solid upward trajectory over the years thanks to the growing population of expatriates, an increase in tourist activities, and a thriving economy.
The increased demand for rental property in Abu Dhabi translates to higher rental yields for investors.
Whether you invest in standard or luxury apartments in the renowned Abu Dhabi splendid Islands, you are assured of better rental yields.
4. A Diverse Investment Portfolio
A profitable real estate investment sphere offers a myriad of investment portfolios. Abu Dhabi’s real estate market offers diversified investment opportunities catering to the needs of both local and international real estate investors.
Whether a prospective real estate investor is looking for residential or commercial real estate investment opportunities, the Abu Dhabi real estate market offers a wide portfolio to match their risk appetite and investment budget.
5. Golden Visa Incentive for International Investors
The introduction of the Abu Dhabi Golden Investor Visa is a game changer in the Abu Dhabi real estate market. It has played a significant role in enticing potential international real estate investors to consider getting a pie of the extensive United Arab Emirates (UAE) real estate market.
Investors who are planning to inject their investment capital to either established businesses or invest in new investment projects either in free zones or Abu Dhabi city mainland are eligible to apply for the Abu Dhabi Golden Investor Visa.
International property investors who are Golden Visa holders get to enjoy 5-10 years of residency privilege in Abu Dhabi.
6. Favorable Investment Tax Policies
A favorable tax policy is a very important factor that potential real estate investors consider before making their investment decisions. Abu Dhabi real estate market offers one of the most competitive tax-friendly environments in the region.
There is zero personal or corporate income tax in Abu Dhabi. Gift/inheritance taxes or capital gain taxes on real estate properties are also exempted in Abu Dhabi. There are no taxes levied on rental yields and foreigners are allowed to have full property ownership without worrying about repatriation issues.
However, 4% of a property sale’s price fee and an extra 2% municipality fee are charged when making a property transfer in Abu Dhabi.
Final thoughts;
Investing in property in Abu Dhabi is a great investment decision that every prospective real estate investor should consider. The market is stable and the government continues to invest heavily in modern infrastructure projects and favorable policies to support the rapid growth of this sector.
Equipped with modern transport networks, functional public utilities, and a diverse population, Abu Dhabi is a great city that one can consider not only for great real estate property investment opportunities but also as an urban living destination in the Middle East.
