Terms of buying a property in Abu Dhabi, the UAE real estate market has been growing significantly recently, and the desire to invest in it globally is increasing, specifically properties for sale in Abu Dhabi, which offers an irreplaceable opportunity for investors, where the standard of living is full of luxury and comfort.

How to buy real estate in Abu Dhabi

There are several important stages that both the seller and the buyer go through when entering into a transaction to buy a property in Abu Dhabi:

The first stage:

It is the stage of choosing the right property in terms of price, area and location, and there are several ways, including searching on the internet, through real estate companies, or by direct contact with the owner, which is the best and surest.

The second stage:

It is the stage of revealing the property and is carried out by visiting it and confirming its required specifications as agreed with the seller.

The third stage:

Terms of buying a property in Abu Dhabi is the most important and most accurate stage, called the memorandum of understanding stage, where the price and costs of transferring ownership of the property are determined and the responsibilities of both the seller and the buyer are determined.

The fourth stage:

The last is the transfer of ownership of the property and is carried out in the Abu Dhabi Municipality in the presence of both parties.

Provisions of the real estate property law in Abu Dhabi

Law No. 19 of 2005 stipulates that ownership is for apartments only, without land, through 4 regulations set by the government.

In 2019, Articles 3 and 4 were amended in that law and Article 3 stated the following: –

Ownership of the property shall be for citizens and similar persons. For joint-stock companies so that the contribution of foreigners to them is no more than 49%.
When making a decision of the crown prince and CEO.
The law also stipulates that non-citizens have the right to enjoy all rights and freedom of disposal of real estate.
As for Article 4, it is the right of the beneficiary or whoever has the right of cadastre for more than 10 years to fully dispose of the property without the permission of the owner and may not be reversed.

Advantages of real estate investment in Abu Dhabi

Abu Dhabi has become one of the most important areas in real estate development, which made it a target for investors and owners due to its stable economy, interest in building a strong infrastructure, the establishment of free zones in various disciplines, and technological digital transformation, and among the advantages of investing in Abu Dhabi:

The high value of the UAE dirham compared to other currencies.
Minimizing the customs placed on the value of the goods.
Lack of taxes on real estate.
Ensuring rights by means of government control over sales and purchase operations.
There is no maximum wage for units.
State support for the investment sector by providing currency in banks and building a strong economy.
Providing full ownership to investors in free zones.
Facilitating foreign currency conversion.
Obtaining facilities and advantages for the stay of Golden Visa investors.
The percentage of profit return is up to 100%.
Enjoy security and security stability.

Procedures for buying a property in Abu Dhabi

The UAE has made it easier for expatriates to Abu Dhabi to own real estate and invest freely by enacting laws to encourage the real estate market through four systems, namely:

The system of renting real estate for a long period of at least 25 years.
The Flatness system is to provide the opportunity to own real estate in investment areas for a period of 20 years or more through contracts in which the investor can build the property and exploit it during the contract period.
The ownership system is the ownership of residential real estate by foreigners without owning land for 99 years and they have the full right to use it.
The usufruct system gives foreigners the right to own real estate without land and the right not to change it by concluding usufruct contracts for 99 years.

Procedures for buying a property in Abu Dhabi

The UAE has made it easier for expatriates to Abu Dhabi to own real estate and invest freely by enacting laws to encourage the real estate market through four systems, namely:

The system of renting real estate for a long period of at least 25 years.
The flatness system is to provide the opportunity to own real estate in investment areas for a period of 20 years or more through contracts in which the investor can build the property and exploit it during the contract period.
The ownership system is the ownership of residential real estate by foreigners without owning land for 99 years and they have the full right to use it.
The usufruct system gives foreigners the right to own real estate without land and the right not to change it by concluding usufruct contracts for 99 years.

Required documents for buying a property in Abu Dhabi

Personal cards of the seller, buyer, witnesses of the contract.
Statement of registration for the buyer of the property.
Titling contract.
A copy of the land area and what it contains from the competent authority and a recent certificate for research.
Acknowledgment.

Fees for buying a property in Abu Dhabi

Terms of buying a property in Abu Dhabi is The value of the property purchase fees is determined depending on the type of property, other fees must be determined by the intermediary real estate company in the purchase process as follows: –

First, the municipality fee is paid in Abu Dhabi and its value is 2% of the property price.
Secondly, there is a mortgage registration fee of 0.1% of the purchase amount.
Third, the bank’s financing fees are estimated at 1% of the funded amount plus 5% of the value added tax.
Fourth, the cost of holding the property is estimated at AED 1000.
Fifth, the fees of the intermediary real estate company are set at 2% of the property value and 5% of the value added tax.
Sixth, the fees specified when evaluating the property range from 2500 to 3000 and add 5% of the added value.
Seventh, the obligation to pay a fee in case of increasing the payment term in the contract is about 900 dirhams.
Eighth, regarding the mortgage, the fees are set at a rate of 1 per thousand and a maximum of one million dirhams in case of replacement or mortgage cancellation, 900 dirhams are paid, but in case of changing the mortgage, an amount of 180 dirhams is paid.

Donation registration fees

As for the registration fees of the gift, it is free of charge in the case of full ownership of spouses, branches, assets and also the Will, and the donation fees are paid as the sale fees in other cases.

Conditions for buying a property in Abu Dhabi for foreigners

The conditions for foreigners to buy real estate in Abu Dhabi depend on 4 systems, namely the ownership system, the flat, the usufruct, and the long-term rental system.
Allowing foreigners to own freehold property in the areas designated for them.
The right to full use of the property when benefiting from it for more than 10 years.

Advantages of buying a property in Abu Dhabi for foreigners

Granting investors Full-stay visas Golden residence visa for a period of up to 10years.
Providing freehold ownership in areas designated for investment.
The availability of cash and the strength of the economy in Abu Dhabi.
Ensuring easy financing for investors through banks to ensure the government’s keenness to support them.
The percentage of return on earnings reaches 100%.

Foreign ownership areas in Abu Dhabi

There are specific areas where foreigners are allowed to own real estate for free, namely Al Raha Beach, Saadiyat Island, Al Reem Island and Al Ghadeer, which are the most popular areas for foreigners, in addition to Yas Island, Al Maryah, Lulu, Saih Al sudaira, as well as Al Reef and Masdar City.

After the amendments to the property law, foreigners have the right to own property in 29 industrial investment zones, such as ICAD zones 1,2,3,4 Razeen Oman residential area as well as Ruwais and Kizad area, a plot of land in the Al Falah Basin, a piece of land for Abu Dhabi Ports Company, Fahed island, Jubail Island, and Breakwater.

Conditions for obtaining a real estate investor visa

The obligation not to dispose of the property for at least two years from the date of issuance of the visa.
For properties subject to a mortgage, a cash payment of at least AED 2 million is required in order for the investor to obtain a visa.
It is necessary to prove whether the property is in a mortgaged state.
You must own a property worth at least AED 2 million and prove it in an investment portfolio.
Availability of at least one investment property in Abu Dhabi with a minimum value of AED 2 million.
Put a minimum amount of AED 2 million in an investment fund within the emirate.

Tips when buying a property in Abu Dhabi

There are several guiding tips when coming to buy a property for the optimal choice, Terms of buying a property in Abu Dhabi namely:

Determine the purpose of buying the property if it is for housing, the unit should be selected based on the area and service areas, but if for investment, the areas with the highest rental yield should be chosen.
Choosing the right time for the purchase process, the purchase should be made at times when there is a decrease in the percentage of purchase and supply of real estate.
Acquisition of real estate in the desired areas.
Choose the best locations in terms of proximity to services and facilities.

Thus, we have clarified all the conditions for buying a property in Abu Dhabi to facilitate the search for those wishing to own a property in the capital of the United Arab Emirates.