Investing in a Property in Abu Dhabi? Guide for Beginners

Despite political instability within the region, oil price spikes, and a downturn in the Dubai real estate market, the Middle Eastern markets are pretty jumpy at the moment. The only island of calm in these turbulent seas is Abu Dhabi.

There are few storms Abu Dhabi cannot weather because of its solid political system and vast oil and cash reserves. In the emirate, there is a real estate sector that is often overlooked, but now has better and more stable returns. What makes Abu Dhabi a good investment?

Is the process of investment easy?

This is easy and quick to purchase for purpose of room for rent in Abu Dhabi. Banks and developers are experienced and secure because thousands of transactions have been completed. An increasing number of units are being added every day. They stand out from Abu Dhabi's traditional older real estate because they are newer and are popular with tenants.

Earn Greater Returns

You can earn over seven percent on your money if you invest in some property in Abu Dhabi (look at net returns, not gross returns). It is rare to find a bank account or fund that can provide such a high return. Capital appreciation may also result in increased returns if your investment is leveraged.

Protect your investment by law

Abu Dhabi has very landlord-friendly laws. You can easily evict tenants after their lease period has ended by giving them two months' notice before the end of their lease. No reason is required for not renewing the lease.

Maintain stability

Property or house for rent in Abu Dhabi has gone through booms and busts like any other investment, but it continues to be a secure asset. Since the global slowdown, property prices and rents have recovered well, and Abu Dhabi's large capital reserves and income from oil provide good prospects for continued growth.

 Further, the UAE government has learned its lessons from 2008 and has taken steps (such as implementing loan-to-value rules and adjusting registration fees) to avoid a repeat of the 2008 bubble.

Future prospects are high

Demand and supply are key factors determining future property prices in Abu Dhabi. A major infrastructure expansion project is currently under way in the UAE (Etihad Rail, Midfield Terminal, Etihad Airways, Louvre and Guggenheim, etc), called the 2020 Plan, which is helping to create jobs and bring people to the UAE.

In addition, there are few developments in the pipeline. According to JLL, only another 18,000 units should become available in 2015 and 2016 (an increase of just 2.8 percent per year), and Colliers estimates that there is a housing shortage of more than 50,000 units.

Rent payment

A year's rent in office for rent in Abu Dhabi is usually paid upfront in the form of one or two checks (the second is postdated). Rents are therefore relatively secure, and tenants are protected from absconding.

Current landlords are not sophisticated

In terms of the rental market, Abu Dhabi is young and includes many first-time landlords. Property owners there are not sophisticated. Knowing the market and what tenants want can lead to higher rents for nimbler, more intelligent landlords. In Abu Dhabi, for example, furnishing certain units is one way to increase rents (not many units are furnished).

Your investment in apartment for rent in Abu Dhabi is about to grow in value immensely and can make you a millionaire overnight if you buy now, as every real estate professional will tell you. Trust your instinct and don't consult the stars; you can't predict whether your property value will increase or decrease.

Consider an investment where your rent will cover your mortgage and leave a little extra for you. The asset will be paid off, you'll accumulate equity, and you'll pocket the rental revenue. Check your numbers before investing.Check your numbers before investing.

Tips to follow for Real Estate Property Investment in Abu Dhabi

There has been an increase in investment opportunities for many in Abu Dhabi's real estate market over the past few years. The wide variety of properties available makes Abu Dhabi's real estate market a popular option for investors.

Rather than keeping the funds in the bank, Waddah recommends investing in real estate as the return on investment (ROI) is more valuable. Waddah explained that investors need to take a few fundamental steps before delving into the world of property investments to ensure a profitable return.

Waddah places an emphasis on understanding the market as one of the first things he does. Investing in a property requires a comprehensive understanding of both the current and future market conditions, along with an understanding of whether the property is likely to appeal to tourists and tenants.

Making profitable property investments in Abu Dhabi is a combination of these two factors. It is important for investors to look three to four years ahead and assess whether the area they are investing in can attract renters or tourists, which can increase the value of their properties and provide increased ROI in the long term.

Abu Dhabi offers a wide range of investment opportunities

The author explains a few key points to bear in mind when investing in bedspace for rent in Abu Dhabi market for the first time. 

  1. Become familiar with the current market conditions - If you want to know what the market position is and how prices are trending, the Bayut annual market report is a great place to start. You'll be able to see which areas experienced significant drops in property values as well as which areas offer a good return on investment. 
  2. Choosing the right location - More than the type of property, investors should consider the location in which they will invest. Property values are affected by location.
  3. Prepare your finances - Real estate investment requires a considerable amount of money. When buying a property, ensure your finances can be managed accordingly.

Investing in studio apartment for rent in Abu Dhabi can be made easier by keeping these points in mind. 

If you want more information about house rental properties for one bedroom or more than two bedroom villas, then be the part of Waperty. We have all types of housing accommodation options for you in Dubai, Abu Dhabi, Sharjah and different other cities of UAE according to your budget.

 

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