Advantages of owning real estate in the UAE capital
For investors from Russia, the United Arab Emirates is attractive not only for its hot climate, but also for the opportunity to invest in a promising and rapidly developing housing market. Below we would like to discuss why residential properties in Abu Dhabi in recent years have become as popular with buyers as real estate in Dubai.
Investors prefer to invest in housing in the capital of the United Arab Emirates for the following reasons:
- Reliable investments
To buy a property in Abu Dhabi means to invest safely and know that the money will not be lost. In 2022, residences in Abu Dhabi rose in price by an average of 8% compared to 2021. According to analysts, the real estate market in the city will maintain a positive trend in 2023, that is, investing will not only save, but also increase capital.
- High profitability of immovable objects
The capital of the UAE is the richest region in the country. Almost 90% of real estate purchase and sale transactions in the city are carried out at the expense of citizens and holders of a long-term visa. These people work here, get an education, and retire. For this reason, housing in the emirate is in stable demand, and therefore the annual yield of local housing reaches 7-8%, which is a good indicator for any real estate market. It should be noted that the average cost of a residential property in the city is 600,000 AED (a little more than $163,000).
3. Low tax rate on property registration
When buying a house in the United Arab Emirates, you need to pay a tax on the registration of property rights. When buying a property in Dubai, you must pay a tax of 4%. Buyers in Abu Dhabi pay 2% of the cost of a residential property. In the capital of the UAE, housing prices are lower than in neighboring Dubai: for example, villas in Dubai are sold for about a third more expensive than in Abu Dhabi. At the same time, profitability and the rate of price rise are approximately the same.
4. Future projects
The city has big plans for the future. Local authorities want to increase the tourism sector, the area of parks and beaches, and plan to build more commercial real estate, medical and educational facilities.
5. “Golden Visa” for investors
In September 2022, the United Arab Emirates introduced a law according to which, when purchasing real estate worth at least 2 million AED ($ 545,000), foreigners have the right to apply for a “golden visa” for 10 years, and not for 5, as it was before. At the same time, not only the investor receives a residence permit, but also his family members: parents, spouse, sons under 25 and daughters of any age, if they are not married.
Are you planning to buy a property in the UAE? Get a free consultation and a catalog of investment real estate. Leave a request in the form below and we will contact you as soon as possible.