The current prices real estate in Abu Dhabi attracts have been a thing of concern for many investors, purchases, and the international community. Many people think property prices and terms in Dubai are overly exaggerated once they come to Abu Dhabi and start wondering why real estate is such a high-grossing sector in the UAE, according to Emirates.Estate, there is a need to have a comprehensive knowledge of the average cost of housing in Abu Dhabi before setting out to purchase one. It is an integral part of planning and makes a great deal of preparation mentally, financially, and otherwise, and it can help in reaching quality decision-making for investors.
What is the average cost of property in Abu Dhabi?
Real estate costs more in Abu Dhabi than in Dubai, and many people find this surprising for various reasons. One is that since Dubai is one of the luxury real estate capital in the world, it is expected to be the most expensive in the UAE. Still, when oil money is speaking, and people can afford the good life, there is no real reason to wonder about the higher cost of livelihood. More so, Abu Dhabi is the capital of the UAE.
Is that being said, what then is the average cost of property in Abu Dhabi?
The average cost of property per sqm is Dh 10,904 in 2023, which is about a 1.5% increase compared to last year, 2022. Converted to dollars, that is about $2,900. Additionally, the value of villa properties is likewise accentuated by about 1% and is currently valued at about Dh 8,850 (about $2,200). You will agree that this is quite on the high side, especially since the increment margin is less than 2%. Meanwhile, you will get more money from investing in Dubai. But it is not always in that manner; Abu Dhabi is a much stabler market, and property value, although in a slow progression, will consistently increase and is unlikely to hit any major market-disrupting gridlock, which many experts fear for Dubai, based on concerns of oversupply in the property market. In essence, the growth projections may be slower, but it is a less risky investment and may be a stabler terrain to invest in than Dubai.
Tourism and Investment for the Real Estate Market in Abu Dhabi; The new 2022 Visa
The government of the UAE is quite desirous of encouraging real estate investments in its capital city and has enacted policies to aid foreign direct investment in the area. Other than the fabulous global rating enjoyed by the city, in 2022, the government introduced a 10-year Golden Visa plan which allows foreigners to stay in the country for up to 10 years, where they buy a property worth 2 million AED and above (converted to dollars, that is about $545,000).
Advantages of the UAE Golden Visa Plan:
- You can live, work and study in the country without a national sponsor if you hold the Golden Visa.
- You can also bring in your family and loved ones into the UAE with a Golden Visa
- You can run a business/ investment or commercial activities in the UAE and can sponsor employees or workers for visa purposes in the country.
- With the new 2022 visa, you can travel out of the UAE for more than six months and not have your visa revoked (under the previous rules, your visa stands the risk of revocation if you stay out of the UAE for a period of 6months in one stretch).
- In the event of the death of the visa holder, their family can stay in the UAE until the expiration of the ten years period.
How to Get the New Golden Visa?
You have to purchase a ready-to-move-in property worth 2 million AED and above. (Before now, the requirement used to be 10 million AED, but it has now been amended. There is a wide margin of persons qualified to apply for the Golden Visa beyond being able to afford it. If you are a top scholar, an investor, a professional, a skilled person, or an entrepreneur, you can apply for the New Golden Visa.
The nearest visa to the Golden Visa is the Green Residence Visa which allows investors to live in the country for up to five years. This is granted to investors and freelancers and is not necessarily tied to real estate, but applicants are required to show some volume of income or investments in the country.
The Potentials of real estate in Abu Dhabi
The Emiratis have had great years in the past on real estate. There is, no doubt, plenty of oil money to go around, and in such a buoyant economy, you can expect some level of stability. The most common trend in the Abu Dhabi market is a small but consistent increase in real estate value. Like every other economy in the world, it was hit by the Covid 19 virus and the antecedent economic dredge but has since bounced back, such that the sales volume has increased up to 75% more in 2023.
Also, being the less touristy city of the UAE, as opposed to Dubai, you are likely to pay more for property. Still, you will also get corresponding value for your money on spacious condos and townhouses. Many Arabians who do not like the crowded tourist areas retire to the capital city for a quieter and real Islamic life, so the properties there always have a pool of entrants. Summarily, you are set for an honest realty relationship with profit if you invest in Abu Dhabi, the UAE.