Buyers Guide To Investing In Abu Dhabi Real Estate

MyBayut is back again with its popular Expert Advice series! Every month we get in touch with an influential expert in the UAE real estate market to share their views and insights on various property-related topics. Today we are in conversation with Waddah Batal, Sales Manager from Nationwide Middle East Properties, to share with us some of the key aspects of investing in the real estate market in Abu Dhabi. Let’s hear what he had to say about investing in Abu Dhabi real estate.

TIPS FOR INVESTING IN ABU DHABI’s REAL ESTATE MARKET

Over the past few years, the Abu Dhabi real estate market has drastically evolved resulting in an increase in investment opportunities for many. With such a large array of properties available on the market, investing in Abu Dhabi’s real estate market has become a popular choice for many. Waddah mentions that rather than keeping the money in the bank, putting it towards property investment is the ideal option as you get a valuable return on investment (ROI). But before delving into the world of property investments, Waddah explained that there are a few fundamental steps investors need to take to ensure a profitable return.

One of the first things Waddah places emphasis on is the importance of understanding the market. Investors must have an understanding of the current and future market conditions, along with an idea of whether or not the area has the potential to attract tourists and renters. These two aspects work hand in hand to ensure you are making profitable property investments in Abu Dhabi. Investors should look three to four years ahead and analyse if the area they are investing in has the potential to attract renters or tourists which in-turn increases the value of the property, providing increased ROI in the long term.

Properties in Al Reem Island Abu Dhabi — There are many areas for investing in Abu Dhabi

Waddah further elaborates on a few key factors that first-time property investors should keep in mind when considering investing in the property market in Abu Dhabi.

Be aware of the current market conditions – Market reports such as Bayut’s annual market reports are a great place to start if you want to understand the current market position and trends of property prices. You’ll be able to identify which locations had significant drops in property prices as well as see which areas offer a good ROI.
Choose the right location – More than the property type, investors should look at the location in which they are investing. The location inevitably affects the property’s value.
Get your financials in order – Investing in property does require a considerable amount of finances. Make sure you are able to manage your finances accordingly when buying properties.

Keeping these points in mind, investors can make the right choice when investing in Abu Dhabi.

ROI FOR PROPERTIES IN ABU DHABI

The Abu Dhabi property market is flourishing. Waddah explains that off-plan projects in the capital city currently offer a high ROI of over 10% – 11% when investing in Abu Dhabi. Investors can choose from residential developments such as Saadiyat Island and Al Raha Beach and many more. These areas feature multiple off-plan projects that are worth investing in.

Apartment buildings in Khalifa City A — *All the residential units in Khalifa City A come with top-notch amenities which is why it is a popular area to invest in Abu Dhabi.*

However, the areas in Abu Dhabi that have the highest ROI are Yas Island, Al Reem Island and Khalifa City A. Masdar City, which is the newest addition to the portfolio of properties for sale in Abu Dhabi, is another popular area that offers high ROI. According to Bayut’s current listings, potential investors can expect to pay prices as low as AED 499k for the properties for sale in Masdar City.

So, if you are looking to buy an apartment in Abu Dhabi, these areas could offer the best options. Similarly, you can find luxurious villas ideally suited for families as well.

PROSPECTS OF THE REAL ESTATE MARKET IN ABU DHABI

When asked about the difference between Dubai and Abu Dhabi’s property market, Waddah explains that the main difference between both is that Dubai is more of a cosmopolitan city that attracts tourists, due to which there is investor interest from all over the world. In Abu Dhabi it is slightly different, rather than outsider interest, there is a higher concentration of the local population investing in the city. However, Waddah believes that the Expo 2020 will change that – it will help enhance the status of the Abu Dhabi property market and further increase the ROI on the properties.

As you can see, the Abu Dhabi property market is clearly flourishing and since property prices are on a decline as shown in our H1 Abu Dhabi Market Report, now is the ideal time to invest. If you are planning on investing in Abu Dhabi’s property market, make sure to get in touch with Nationwide Middle East Properties!

ABOUT WADDAH BATAL

Waddah Batal is an experienced Property Consultant at Nationwide, who specialises in the sales of residential properties in Abu Dhabi. His journey in the industry began back in 2015. Since then he has grown to become one of the most successful brokers in the Abu Dhabi property market who is revered for his passion and commitment to offering his clients the best services.