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Guide to Buy or Rent a Villa or Apartment in Abu Dhabi
The UAE's real estate market is always growing. Compared to five years ago, there are now 2.5 times as many sales and purchases made in the Emirates. In locations where foreign buyers are permitted, a large number of apartment buildings and villas for sale and rent are constructed.
Purchasing real estate in the United Arab Emirates can provide investors with an extra revenue stream and qualify them for a UAE Golden Visa.
Who can buy property in UAE
Everywhere in the UAE, UAE nationals are permitted to purchase and fully own real estate. Citizens of a few Middle Eastern nations, including Saudi Arabia, Oman, Bahrain, Kuwait, and Qatar, are also covered by this.
Under certain restrictions, foreign nationals can purchase villas or apartments in the United Arab Emirates. It is permitted to buy real estate and take full ownership in designated areas known as freehold zones. It is only permitted to have a tenancy over a real estate object anywhere else in the United Arab Emirates.
A tenancy gives a person 50–99 years of ownership over a physical item, but not the land it is built on.
Foreign nationals are eligible to apply for the UAE Golden Visa if they fully own a property in the freehold zone. In Abu Dhabi, there are nine freehold zones; in Dubai, there are about fifty.
Benefits of Investing in a Real Estate in UAE
1. The increase in real estate values. Real estate is becoming more and more in demand in the UAE. By the end of 2022, there will have been 25,500 property sales transactions, which is 60% more than during the same time previous year.
As a result, prices are rising as well. For instance, the average price of an off-plan apartment at the end of 2022 is AED 1.3 million, a 15% increase over the previous year.
2. A chance to rent the item out. It is legal for owners to rent out their properties. The annual rental yield is between 5 and 8%.
Travelers, business travelers, and highly qualified foreign workers are among the tenants of residential homes.
3. Real estate is not taxed. There are no yearly property taxes due by owners of real estate. Additionally, taxation on rental revenue from owners' properties is waived.
Taxes are only due when a real estate item is purchased or sold. However, the tax rate is quite modest, ranging from 2 to 4%, and the buyer and seller typically split the total tax liability.
4. Getting a Golden Visa. The UAE residency program is open to those who buy villas or apartmentin the freehold zones. Depending on the amount invested in real estate, the duration of the visa might be either two or ten years.
Types of properties in the UAE
Among the types of properties that foreigners can purchase are apartments, townhouses, villas, and commercial properties. To qualify for a UAE residence visa, a foreigner can choose finished real estate or a property under construction. Apartments are bought almost 5 times more often than villas: for the 2nd quarter of 2023, the number of purchased apartments reached 23,244, while the number of purchased villas is 4,808, according to the Dubai Real Estate Market Report.
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