It presents an exciting new opportunity for international buyers. Do you want to know this? So let’s see key things and find the answer to “Can Foreigners Buy Property in Abu Dhabi?”.
The Legal Scene
In 2005, Abu Dhabi introduced Law No. 19 to allow foreign property ownership. This law changed everything. It let expats own properties in the emirate for the first time. But there were some limits. You could own apartments and villas, but not the land under them.
The law brought in four main systems to own property:
Ownership
This is a big shift from the 2019 law. This system gives you a 99-year lease on homes. You can sell, rent, or renovate your property as you like. Just keep in mind that the land itself isn’t part of what you own.
Musataha
If you’re making plans for the future, Musataha could be your top choice. This system gives you the right to use, construct on, or change properties for 50 years. The best thing? You can renew it if both parties agree. It’s ideal if you want to start a business or make a long-term investment.
Usufruct
For those of you with long-term plans, Usufruct is the way to go. You get to enjoy the property and its features for 99 years. The downside? You can’t make big changes. It’s similar to having a long-term rental agreement.
Long-term Lease
If you want the more traditional approach, you can go for the long-term lease option. It can go up to 25 years, giving you ample time to settle in Abu Dhabi.
The 2019 Game-Changer
Here’s where things get interesting. In April 2019, Abu Dhabi decided to open up the full ownership. They changed the real estate law to make the emirate more appealing to investors.
What’s new? The big shift is that foreign buyers can now have full ownership of properties in specific investment areas. This means you get the building and the land underneath. It’s a game-changer!
Abu Dhabi updated Articles 3 and 4 of the original law. Here’s the key points:
Article 3 (i) demands the rights to own property are limited to three categories. They are:
Emirati citizens, natural or legal persons
Public holding companies where ownership with non-nationals does not exceed 49 per cent
Any person to whom a decision is issued by the Abu Dhabi Crown Prince or the President of the Executive Council.
Article 3(ii) now lets non-UAE citizens, both people and businesses own and get all original paperwork in investment zones.
Article 4 grants additional rights to individuals with ‘usufruct’ or ‘musataha’ contracts lasting over 10 years. You can now manage the property. It includes taking out a mortgage approval. This change gives you greater control.
Where Can You Buy?
Now that you feel eager to buy property in Abu Dhabi , you might wonder about the specific areas available for buying. The emirate has set aside certain zones for foreign ownership. These areas represent some of Abu Dhabi’s most sought-after locations. Let’s explore them:
Here’s a list of communities in Abu Dhabi you can buy property:
- Raha Beach
- Reem Island
- Al Reef
- Lulu Island
- Saadiyat Island
- Yas Island
- Saih As Sidirah
- Masdar City
- Al Maryah Island
- Al Falah
- Fahed Island
- Hidd Al Saadiyat
- Al Jurf, Ghantoot
- Nurai Island
- Jubail Island
- Al Shamkha
- Palace Breakwater
These areas all have something special about them. You’ll find a place that feels right for you.
The Process of Buying
So, you want to buy property in Abu Dhabi. Great! But where do you begin? Don’t worry, I’ll guide you through the main steps to help you out.
First, pick a location. Remember those freehold zones we talked about? Focus on those areas. Once you’ve settled on a preferred spot, start looking at properties.
Check out our website’s Abu Dhabi Projects Section. When you find a property you like, you’ll need to pay a down payment. This ranges from 5% to 20% of the selling price. Then, the paperwork kicks off. You’ll sign a Memorandum of Understanding (MOU) with the seller.
The next step plays a key role. You must get the No Objection Certificate (NOC) from the developer. This document shows that the seller has paid all their debts and can sell the property.
Once you finish the paperwork, head to the Abu Dhabi Municipality to transfer ownership. You’ll pay about 2% of the transfer fee here. Then, you’ll receive your new title deed. Done. You now own property in Abu Dhabi.
Financing Your Purchase
Let’s discuss financing. If you’re like most buyers, you’ll need a mortgage to buy your property. The good news? Many UAE banks give mortgages to expats.
You’re able to get a loan for up to 80% of what the property costs. This means you need to put down 20% as a down payment. Interest rates and terms differ, so it pays to look around for the best offer.
Don’t forget to include other expenses. There’s the 2% transfer fee we discussed earlier, agent fees (often around 2%), and maybe some other small administrative costs.
Expert Insights
Don’t just believe me. Let’s see what some real estate pros think about buying property in Abu Dhabi.
Edward Carnegy, head of Savills Abu Dhabi, says the 2019 law change has a revolutionary effect on the market. He thinks it will push more companies to open their businesses in Abu Dhabi, giving a boost to the economy and property market.
Lynnette Abad from Property Finder shares his excitement. She points out that these changes make Abu Dhabi as appealing as Dubai to invest in real estate.
Farhad Azizi from Azizi Developments sees similarities between Abu Dhabi’s current growth and Dubai’s earlier boom. He notices increasing demand and thinks Abu Dhabi attracts more international investors.
Tips for Success
As you start your property-buying journey in Abu Dhabi, keep these tips in mind:
Learn About the location
Spend time getting to know the neighbourhoods you like. Visit them at different hours, check out nearby shops and services, and imagine living there.
Choose Good Agents
Make sure you pick a licensed real estate agent. They should have registration with the Department of Municipalities and Transport (DMT) and know the local market well.
Look at Off-Plan Properties
If you want a good deal, think about buying off-plan. These properties often cost less than finished ones, and builders might offer good payment plans.
Look to the Future
When choosing a property, think about how its value might grow. Areas with new projects coming up or those near important places often see good value increases over time.
Use Tools at Hand
Make use of tools like the MyLand Abu Dhabi app. It’s a useful way to check property details and see how real estate projects are doing.
Conclusion
So, can foreigners buy property in Abu Dhabi? The answer is yes! Abu Dhabi changed its laws in 2019 to welcome foreign property buyers. Abu Dhabi offers options for people who want a permanent home, a vacation spot, or an investment.
Abu Dhabi has many investment areas that suit different tastes and budgets. Keep in mind that buying property is a major choice. Don’t rush, look into it , and feel free to ask experts for guidance. With proper planning and thought, you can turn your wish to own property in Abu Dhabi into reality.
So why wait? Start exploring your options today. Who knows? This time next year, you could be watching the sunset from your very own balcony in Abu Dhabi.
