The Abu Dhabi real estate market has been on the rise for several years and is expected to continue to do so throughout 2023. Despite challenges such as the COVID-19 pandemic and declining oil prices, the market has remained resilient and offers some of the most attractive real estate opportunities on a global scale. In this blog post, we will explore five reasons why investing in Abu Dhabi’s real estate market might be the best investment decision you’ll ever make.
The 5 reasons to invest in the Abu Dhabi Real Estate Market — At A Glance
- A diversified and resilient economy.
- Increasing demand from European and East Asian buyers.
- The diversification of real estate development firms.
- Abu Dhabi’s drive towards sustainability.
- The emirate is one of the most desirable places to live in on the planet.
Scroll below for an explanation of each of the above points.
Understanding the Abu Dhabi Real Estate Scene
The real estate market in Abu Dhabi is diverse, with a variety of properties catering to different demographics and budgets. From high-end villas and apartments (such as those found in Saadiyat Island) to affordable housing, the city has something for everyone. While the market is generally stable and promising, it’s important to research thoroughly before investing. Factors such as location, development plans, and market trends can all affect your investment’s profitability. It’s also crucial to seek guidance from experienced professionals with relevant experience in the Abu Dhabi real estate market.
How will Dubai and Abu Dhabi property markets perform in 2023?
While it is difficult to predict with certainty how the real estate markets in Dubai and Abu Dhabi will perform in 2023, experts suggest that market stability is likely to remain. The expected price rise of properties in the region is an indication of a healthy real estate market.
Is it a good time to buy property in Abu Dhabi?
Yes, the current real estate market in Abu Dhabi has proven to be stable and attractive for potential buyers. The city’s government has implemented several policies to encourage foreign investment and economic growth, which has stimulated the real estate market further. Additionally, with the upcoming development of major infrastructure projects such as the new airport terminal (Abu Dhabi Airport’s Midfield Terminal) and metro system, property values are expected to increase over time.
Why Invest in the Abu Dhabi Real Estate Market?
1) A diversified and resilient economy
One of the biggest reasons to invest in Abu Dhabi’s real estate market is the emirate’s diversified and resilient economy. While oil has historically been the primary driver of the Abu Dhabi economy, the government has made a concerted effort to diversify its revenue streams. This diversification has included the development of sectors such as tourism, manufacturing, global trade, and finance, which have helped to cushion the impact of declining oil prices.
In addition, Abu Dhabi has shown its resilience in the face of challenges such as the COVID-19 pandemic. The government’s swift and decisive actions to contain the spread of the virus have helped to limit its impact on the economy. The country’s success in rolling out vaccination programs has also been a positive factor in its recovery.
2) Increasing demand from eastern European and east Asian buyers for properties in Abu Dhabi
Another reason to consider investing in Abu Dhabi’s real estate market is the increasing demand from European and East Asian buyers. These buyers have been attracted by the emirate’s stable economy, as well as the recent “Golden Visa” scheme introduced by the UAE government. The scheme offers long-term visas to investors and entrepreneurs, providing them with greater stability and security in the country.
This influx of foreign buyers has been a driving force behind the growth of the real estate market in Abu Dhabi. Foreign direct investment into the sector has been promoted by developers such as Aldar Properties, who have been actively seeking out new buyers from abroad.
3) The diversification of real estate development firms
The diversification of the developers in Abu Dhabi is another reason why investing in the Abu Dhabi real estate market could prove to be highly profitable. The improved market conditions have encouraged previously subdued sub-developers to launch new projects and challenge the dominance of established developers such as Aldar.
With many developers in the market, each with its own value proposition and target market, individuals looking to invest in properties in Abu Dhabi will be spoiled for choice.
Developers such as Reportage and Q Properties, are expected to launch projects in 2023. Some of the known names of such projects include:
- Vista 3
- Reem Hills Phase 3
The rise of Q Holdings (the umbrella under which Q Properties falls), through the massive mergers of Tamouh and Al Qudra, will also likely lead to more development diversification in Abu Dhabi.
Moreover, even dominant Dubai developers are moving to grab a piece of the Abu Dhabi real estate market, with the founder of Emaar launching a new real estate development firm named Eagle Hills which has recently launched a flagship project by the name of Ramhan Island. Click on the previous link to find out more about “the world’s best residential resort island.”
4) The Drive Towards Sustainability
Sustainability is becoming an increasingly important factor in the real estate market in Abu Dhabi. Developers such as Aldar are using their sustainability credentials to sell their new projects, promoting features such as “green build technology” and “sustainable materials.”
Their recent project The Sustainable City Abu Dhabi (the successor of the Dubai development with the same name) sold out extremely prematurely due to the explosive potential investors saw in the development. The project centering around sustainable living, farming, and green energy is set to be a true masterpiece. Click on the following link to find out more about The Sustainable City Abu Dhabi.
As utilities become more expensive, there will be an increasing drive for energy efficiency, if not for moral reasons, then for financial reasons.
In the future, we can expect to see features such as solar panels becoming standard in UAE real estate, as developers look for ways to reduce their carbon footprint and appeal to environmentally conscious buyers.
5) Abu Dhabi is one of the most desirable places to live on the planet
Abu Dhabi has rapidly become one of the most desirable places to live in the world, and this is excellent news for anyone looking to invest in the city’s real estate market. Over the past decade, the emirate has undergone a massive transformation, with new infrastructure projects, cultural attractions, and a growing economy attracting people from all over the world. Currently, around 90% of the country’s population is foreign.
One of the biggest factors driving Abu Dhabi’s desirability is the city’s high standard of living. The UAE government has invested heavily in public services, such as healthcare and education, making Abu Dhabi a great place to raise a family. In addition, the city is known for its safety and security, with low levels of crime and a stable political environment. As a matter of fact, it is so safe, that leaving valuables in public places unattended, leaving your cars doors unlocked, and not locking the doors to your home when leaving, are all common practices.
Abu Dhabi’s proximity to other popular regions of the world is also a major selling point. The emirate is just a short flight away from popular holiday destinations like Europe, Asia, and Africa, making it an ideal base for international travel as well as trade. In addition, Abu Dhabi itself boasts an endless list of record-breaking attractions, including the famous Formula 1 circuit, Ferrari World Abu Dhabi, Warner Bros. World Abu Dhabi, the Sheikh Zayed Grand Mosque, and many more.
Will home prices drop in 2023 UAE?
The Abu Dhabi real estate market is expected to remain stable and possibly see price increases due to economic growth and infrastructure developments, though external factors may affect market stability. Consulting local experts and conducting research is crucial before investing.
How is the real estate market in Abu Dhabi?
Abu Dhabi’s stable real estate market, boosted by government policies and upcoming infrastructure projects, presents great opportunities for buyers. However, careful research and consultation with experts is crucial for informed decision-making.
The Abu Dhabi real estate market: 5 reasons to invest
- It’s a diverse and resilient economy
- The growing demand for real estate from Europe and East Asia
- Diversification of property developers
- The emirate’s emphasis on sustainability
- It’s a highly desirable living destination
Gravity Real Estate
Gravity Real Estate is a leading real estate consultancy in Abu Dhabi that has been around for over a decade. With expert agents spread across every corner of Abu Dhabi and tight connections with the leading developers, there isn’t a real estate situation we cannot aid with.
Our diverse range of services includes everything from the sale and rent of all kinds of properties, property management, off-plan property investment, consultation services, and property marketing. Call us now to find out how we can help move your situation forward.
