International buyers from across Europe have fueled an unprecedented demand for real estate in Abu Dhabi. Real estate agencies have witnessed over 50 percent increase in demand in the first four months of 2022, compared to the same period last year.
The increased demand from international investors has been attributed to a variety of factors, including free zones, which encourage business investment, to family-focused living and unparalleled safety in the city.
Evgeny Ratskevich, CEO of Metropolitan Capital real estate, said the Abu Dhabi government had done a tremendous job in recent years by improving infrastructure, standard of living and good business conditions, all of which are encouraging people to invest and live in Abu Dhabi.
Metropolitan Capital Real Estate sold a total of AED2.8 billion across five locations, including Yas Island, Al Reem island, Al Saadiyat island, Al Raha beach and Khalifa City. The company said that international buyers from various European nations have invested in the city, in addition to buyers from countries like Russia, UK and Australia.
The CEO also said that in addition to the number of investors rising, the size of the investments were also rising correspondingly, with property values showing an increase of almost 75 percent compared to the same period last year.
Abu Dhabi policies a major reason for influx
A major reason for investors being attracted to Abu Dhabi is the city’s burgeoning number of free zones, where owners can operate under 100 percent ownership in a low cost operational environment. Investors can also benefit from full exemption of personal, corporate, import and export taxation.
The city’s reformed visa schemes, infrastructure, safety, and business-friendly policies have all led to a massive increase in the number of investors relocating to, and investing in Abu Dhabi.
Director at Henry Wiltshire International, Andrew Covill, mentioned that the agency has witnesses a growing demand for high-quality luxury accommodations.
He said that the demand for villas with a view was the greatest, along with increased demand for luxury apartments with outdoor space and water views. He also said that international investors were looking for capital growth and high rental returns.
According to him, the Green Visa policy , which grants citizenship to people who invest over AED2 million in property, is also a key reason for the influx of investors.
Executive Director at Soufiscape Properties, Badia Soufi, said that her company had seen an increase of inquiries by at least 40 percent, for properties in Abu Dhabi. She also said that many of the investors were from Russia and Ukraine, who find the city a safe environment to invest their money.
Chief Commercial Officer of Aldar Development, Rashed Al Omaira, said that the real estate sector in Abu Dhabi has established a strong position in the last few years, and continued to reinforce the city’s status as a destination for investment and home ownership. He also said that female buyers have also entered the market recently.
He further said that the positive sentiment was reflected in the record sales by Aldar of AED2.2 billion recorded in the first quarter of the year, in addition to increased occupancy and footfalls which touched 92 percent at the end of March. This was close to pre-pandemic levels, he said.
While praising the social and economic initiatives that had been introduced by the government, he also said that the recent changes to business ownership laws and resident visas would continue to boost the Abu Dhabi market and attract international and local home owners and investors.