Just recently, Abu Dhabi is claiming its right of seat as one of the top richest city in the world after being long overshadowed by Dubai, its neighboring Kingdom, belonging to the United Arab Emirates known as the UAE. Its recent rise of wealth is due to the large oil reserve. Aside from the oil business, Abu Dhabi realized that diversity in business is of great importance which prompted them to support other industries such as banking and tourism. Due to this economic growth, Abu Dhabi’s real estate also flourished significantly.
Value of land in Abu Dhabi raised almost double its value only within a few years time and the mortgage market has risen as well according to recent studies by real estate experts. The occupancy rate of office spaces are at an astonishing 99%. The number of visitors and expats who come to Abu Dhabi to work or for vacation or business visits accounts for this high demands in rental facilities. The residential occupancy rate is estimated at 98% and still increasing, and very soon, the supply of these spaces for rent might not be able to provide for the demands.
The market prices of Abu Dhabi real estate have risen notably in less than a year with residential properties at a 53% increase.
At times, inconveniences to some people or instances may prove to be an advantage or wealth to some. The fact that Abu Dhabi does not have a reliable form of public transportation makes it hard for people during the hot summer months making living in the heart of a city discomforting. This makes the properties near the beach areas like Saadiyat good investments for those thinking of acquiring property or investing.
People whose ethnicity does not belong to countries under the Gulf Cooperation Council can only lease property for a term of ninety nine years, renewable. The properties must also be part of the “investment areas” which are assigned by the government. Seeking assistance form a reputable and reliable real estate agent might prove to be very useful in acquiring property in Abu Dhabi. For expatriates, buying a property does not mean that they are granted a permanent residency visa.
Although the sudden increase in property value might be a disadvantage to those who are planning to buy property in Abu Dhabi, the good news is, property taxes just don’t exist in Abu Dhabi. Capitals gains tax and appreciation of property as well as rental fees are completely tax free. The only tax there is associated with Abu Dhabi real estate is a 2% tax for registration.
Although already a rich city in world standards, consistently, Abu Dhabi is further developing more economically with more and more people coming in yearly. This means that real estate industry will continue to flourish and investing in an Abu Dhabi property might well be worth the time, money and effort. Visit this amazing and dynamic place and try to see if acquiring an Abu Dhabi real estate is feasible and appropriate for you as an investment.