Investment Property in Abu Dhabi Set To Boom

Investment Property in Abu Dhabi Set To BoomThe property ownership rules in Abu Dhabi have just changed - the capital of the United Arab Emirates now welcomes foreign real estate investors with open arms and rewards them with the right to purchase leasehold property in the emirate.

Industry experts who were caught slightly by surprise by the anticipated yet swiftly implemented law change are rubbing their hands with glee as they realise the incredible wealth of potential now on offer in the property market in Abu Dhabi which in real terms could equate to at least GBP 30 billion over the next 2 years alone.

Abu Dhabi borders Dubai, and access to the likes of Dubai airport and the Jebel Ali free zone and harbour are easy from Abu Dhabi which will make the emirate the new commuter town for Dubai!  Rental prices in Dubai are spiralling ever upwards as the demand for accommodation far outstrips current supply and industry experts believe that the expansion of the housing market across the border into Abu Dhabi will allow for more supply in the next 10 years which should alleviate what could otherwise become a problem. 

The access to more affordable real estate over the medium term should also help to prevent what some were saying could be an implosion in the Dubai business market...an implosion caused by excessive and restrictive housing and office costs.

Those who missed the boat in the Dubai property market and failed to purchase real estate when it was far more affordable are quite simply being given a second change in Abu Dhabi...this is an excellent opportunity for the individual property investor or the corporate seeking more affordable premises or accommodation options for their key workers.  The leases available are either on a 50 or 99 year basis and currently relate to property rather than land meaning that the only real estate currently available under the terms of the new law will be apartments.

The new law was only passed on friday by Sheikh Khalifa bin Zayed Al Nahyan so it’s a little early to say how warmly it will be welcomed across the United Arab Emirates and beyond or whether it will be extended to accommodate leasehold ownership of land as well, but developers are already planning exclusive apartment developments designed for the anticipated new wave of expatriate investors in Abu Dhabi.

Al Raha is the only example of such a development already in existence - though the first phase of this development is already sold out and every unit was bought by local Emiratis.  Significant local and international investors have been waiting in the wings for the new property ownership legislation to be implemented.  Now they have been given the green light there are already solid plans in place to build massive accommodation complexes incorporating schooling, private health clinics, equestrian centres, polo centres, hotels and spas and there are already many expatriates lining up to buy their place in the next international property market to boom.

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