Many foreign investors are choosing the best place for buying real estate in the UAE. This country has numerous benefits, such as a booming economy, bargain property prices and high standards of living. There’s definitely not a one-size-fits-all answer to this question as a lot depends on the purpose of buying a residence and individual preferences, so let’s have a look at the most popular locations and their comparative advantages.
Contents:
- Real estate market in the UAE
- Buying an apartment in the UAE: important features
- Finding a property in the UAE
Real estate market in the UAE
For foreign nationals, Dubai and Abu Dhabi remain the cities of choice in the UAE when it comes to purchasing real estate. The sales in other cities are significantly lower.
In 2022, Dubai’s performance hit a historic high. The cumulative value of transactions surpassed the 2021 performance by almost 60%. The prices increased by an average of 9 to 23% depending on the property type, while prestigious districts boasted a 50-100% growth. This trend has persevered in 2023. Over the first quarter alone, the year-on-year price growth reached 11.4%. In May, the number of property transactions surged by 76% compared to the same period last year, while the number of deals with new projects offered by developers in Dubai increased by 110%. When it comes to this city, the conclusion is unequivocal: it’s high time to buy before the prices rise further.
Abu Dhabi’s performance is no less impressive. In the first quarter of 2023, the value of property transactions surged by 147%. Customer interest rose by 66% compared to the same period last year. The demand for premium properties, with many being built over the past two years, is particularly high.
Abu Dhabi
Abu Dhabi, the cultural hub of the country, boasts extensive facilities and an abundance of green areas. The local living conditions are quite comfortable, so buyers choosing an apartment for relocation should definitely consider this option. As leisure facilities develop, the tourist flow is expected to increase, ensuring that the local homes are potentially lucrative investment assets.
The capital’s only disadvantage is that it can hardly compete with Dubai regarding the volume of new developments, so the number of listings here is lower while the prices are rather high. Developers only began active construction in this region in the past few years, so the local market is still dominated by the existing homes whose quality is inferior to that of contemporary properties.
Dubai
With all property types available, from affordable studios to premium villas, duplexes and penthouses, this city remains the most attractive investment destination and is almost second to none when it comes to its return on investment, which can reach 10% annually in this megalopolis. This makes rental homes in Dubai a lucrative purchase.
As for buy-to-live properties, both cities share the same features:
- Extensive infrastructure with stores, shopping malls, schools and hospitals within walking distance;
- Access to the coastline and an opportunity to purchase a home by the sea;
- Hot climate that expats might find unsettling in the summer.
It makes no sense to compare the prices as they depend directly on the specific property and its advantages.
Sharjah
Sharjah boasts a unique location with access to both the Persian Gulf and the Gulf of Oman. Freehold zones, allowing foreigners to have private ownership rights on real estate, are not as numerous here. The local properties cost less than those in Abu Dhabi or Dubai.
Apart from that, the emirate has great infrastructure with a large international airport, schools, kindergartens and other social facilities. It should also be taken into consideration that Sharjah follows strict Muslim laws concerning appearance and behaviour.
Buying an apartment in the UAE: important features
The easiest way to decide where to buy an apartment in the UAE is to come to the country and spend some time in the city of your choice to get an idea of the local conditions and decide whether you would be happy there. Several other aspects to consider are:
- Whether you are planning to relocate or acquire a buy-to-rent property
In the former case, living amid a tourist haven may not look too enticing. Your personal comfort, the distance to the seacoast, parks, shops and social facilities will be of paramount importance. On the other hand, an investment apartment in a touristy district is a better choice; - Your budget
This will determine the property type and potential locations. If you’re investing and not going to relocate urgently, the off-plan properties are worth a look as they are available at bargain prices; - Visa programmes for real estate investors
A Golden Visa is granted in both Dubai and Abu Dhabi for purchasing real estate worth upwards of AED 2 million (USD 544,500). Dubai, however, also offers an extendable two-year residence visa for spending AED 750,000 (USD 204,000) or more on a property; - Property maintenance costs
These costs can vary not only by the city but also by the district. You can check the exact numbers on the websites of relevant authorities (for instance, the Real Estate Regulatory Agency (RERA) publishes Dubai maintenance rates) or with your broker when choosing a residence.
Finding a property in the UAE
On our website, you can view property from developers in Dubai, Abu Dhabi and other UAE cities. Our listings contain current prices and our database is updated regularly. Our experienced team will gladly assist you in selecting and purchasing a residence in any part of the United Arab Emirates. Please fill out a callback request form to receive a professional consultation.
