It is fair to say that Abu Dhabi’s freehold ownership laws are game-changers. Many real estate experts expect 2020 to be the year when the market starts to feel its influence. Here’s their take on this matter.
A set of data and statistics accumulated from real estate web portals such as fawaz.ae suggest sales prices are either steady or growing. That’s quite an advancement considering the fluctuations throughout the last few years.
Residential Investment Zones
In Q3 of 2019, residential communities such as Saadiyat Island, Al Reef, Al Raha, and Al Reem Island yield top returns with real estate investors. Then there are the already established neighborhoods such as Al Muroor, Khalifa City A, and Mohammed Bin Zayed City, which are quite popular rental areas in Abu Dhabi.
Each of those neighborhoods was popular back at the beginning of 2019. Their popularity persisted in 2020 as well. The main reasons behind their popularity among tenants and potential homeowners are their family-friendly features, favorable asking prices, and excellent location.
Steady growth was also picked at investment zones such as Al Reef, Saadiyat Island, Masdar City, and Al Raha Beach. These investment zones attract top interest from people in search of an apartment.
Al Ghader is also a neighborhood where there are plenty of apartment units. The demand for apartment units there has never been stronger. The main reason for that is because of its proximity to Dubai. According to several sources, the average price per square foot in this area has increased by 5.5%.
Hottest Investment Zone
Generally speaking, Abu Dhabi’s real estate market is going steady, and some places expand faster than others. One of the neighborhoods that offer the highest return-on-investment is Al Maryah Island. Currently, its ROI is placed at an excellent 10.7% for apartment units. On the other hand, Al Reef offers the highest rental returns for houses and villas. The ROI there averages 7%.
When it comes to off-plan developments, the hottest spots include Saadiyat Island and Yas Island. Yas Acres is the sought out neighborhood within Yas Island, while with Saadiyat Island, that’s Park View.
2020 has started well, and January was just a preview of what Abu Dhabi real estate market has to offer. The demand from both locals and the expatriates living in the city is ongoing without any signs of regressing.
The output is in harmony with the demand, and there are no signs of bubble or oversupply. The city’s GDP is on a path to a 3.9% growth, and the interest from foreign investors is exponentially growing.
All that leads to only one conclusion – real estate investors in Abu Dhabi are about to have a great year. Will the residential sector prevail over the commercial sector? Which neighborhoods will yield the top returns? All these are legit, million-dollar questions whose answers keep investors awake at night. What is certain is that there are opportunities every way you turn, but it takes courage and expertise to recognize and invest in them.