Your guide to buy apartments in Abu Dhabi
Leading real estate developers in Abu Dhabi, such as Bloom Holding, offer many compelling investment opportunities. Considering the expeditious growth and lucrative market projections, it is an investment destination for high-net-worth individuals. Hence, if you are considering investing or buy apartment in Abu Dhabi, you need a sound understanding of market fluctuations.
In addition to the current influences, you also need to understand the impact of this market in the future.
Let us simplify the buying process for you with this comprehensive guide to buying an apartment in Abu Dhabi.
Guide to Buying an Apartment in Abu Dhabi
- Eligibility – In 2023, the number of expatriates in the UAE is as high as 9 million. So, if you’re an expatriate, you should discern whether you’re eligible for property ownership in Abu Dhabi. As per Abu Dhabi property laws, expatriates can buy freehold properties in certain areas. These areas include Yas Island, Saadiyat, Al Raha Beach, and more.
- Property Taxes and Maintenance Cost – You are responsible for certain taxes and maintenance costs after purchasing a property. Taxes and maintenance are one of the most crucial factors influencing your purchase decisions. The transfer tax of the property is divided equally between the buyer and the seller; in Abu Dhabi, the tax is 2% of the property price. A Registration fee needs to be paid, which is 545 USD for deals up to 137,000 and 1090 USD for any deals over 137,000 USD. The administration fee for tax payment is 147 USD, and issuing an ownership certificate is 68 USD.
- Location – Location can have an influence on the future value of any property in Abu Dhabi. Specific sites like Al Raha Beach, Saadiyat, and many more have a higher ROI. So, if you want to buy off-plan apartments, try to invest in these locations. Chances are the value of your off-plan investment will increase post-completion.
- Consider Off-plan Properties – In Abu Dhabi, the ROI for off-plan properties is 10% to 11%. The ROI is comparatively higher than any other location in the UAE. Additionally, investing in an off-plan apartment will let you buy at a lower market value. These properties also offer a flexible payment plan. Hence, several investors and real estate market experts advise new buyers to invest in off-plan apartments and properties.
- Rental Yields – Rental yields are a considerably sound financial plan to provide backup. If you want to find tenants for your apartment, you need to calculate the possible rental yield from your property. Since the number of expatriates is so high, finding renters is not strenuous in Abu Dhabi. Here you may ensure your mortgage and maintenance are paid by the yields. One of the best things about renting your apartment in Abu Dhabi is that rental income is not taxable here.
While buying an apartment, the needs of your loved ones is paramount. Hence, alongside the factors mentioned above, you need to consider that as well. Buying an apartment is more than just an investment opportunity. It is an opportunity to build a home for you and your family. So, you should select financially profitable property that fulfills your needs. Several developers in Abu Dhabi are building exclusive master communities that can cater to diverse needs with state-of-the-art amenities.