6 amazing facts about buying property in Abu Dhabi
Abu Dhabi is finally emerging from the shadows of the glamorous Dubai. It can now boast of its own attractions like the Capital Gate which is often compared with the Leaning Tower of Pisa because it leans a lot further. Then there is the Emirates Palace with its 1,002 chandeliers and the world’s largest hand-knotted carpet in the Sheikh Zayed Mosque.
The real estate market in Abu Dhabi is booming now with a wide array of properties on sale. It has become an increasingly popular method of investment in this side of the globe as the returns are high. You can check out premium Property For Sale in Abu Dhabi.
But before we proceed further you must understand why investing in Abu Dhabi is key for your investment profile.
- Stable politically: Amidst changing political stances in the middle east, Abu Dhabi stands tall with a stable political system in place. It lacks the glitter and glamor of Dubai but it is solid to weather any storm as it has large reserves of oil and cash at its behest. It has in fact recovered very well after the 2008 slump down.
- High return of interest: You can get almost 10-11% return on your investment if you buy a property here which is much more than any bank anywhere in the world can give as returns.
- Rent is not capped: Here the landlords can charge their tenants rent according to market trends as it is not capped. This means that every time the rent increases the landlord can benefit. Another benefit here is that the tenant pays the rent for the entire year upfront. This provides greater security to the landlords from errant tenants.
- Law is in favor of landlords: The law is in favor of the landlords in Abu Dhabi giving them full authority to end a lease any time they want by providing a two-month notice and not giving any other reason. It is not difficult to evict a tenant once the lease is complete.
- Infrastructure expansion: The government has an ambitious plan of creating a lot of jobs and bringing more people to Abu Dhabi. The process is already in progress with the expansion of the Etihad rail, Etihad airways etc. To avoid housing shortfall developers and builders are increasing the construction of new houses, villas, gated communities and condominiums in the region.
- Strategic location: Located strategically close to Dubai, many companies headquartered in Dubai offer residence for their staff in Abu Dhabi. Here the rentals are low and it is relatively calm when compared with touristy
The property market in Abu Dhabi is roaring and now is the right time to invest. Areas like Yas Island, Al Reem Island and Khalifa City are immensely popular and the ROI is high for investments in these areas. Just do keep in mind that before buying property in the UAE you must deposit a down payment which varies between 25% for foreigners and 20 % for UAE citizens.