Rental yields, capital value growth make UAE capital’s realty market an attractive investment hub
Real estate sector gets ready for heightened activity with 10th edition of Cityscape Abu Dhabi

Abu Dhabi, UAE – Abu Dhabi is fast emerging as the prime financial, trading, logistics and business hub in the region and might well be giving neighbouring Dubai a worthy challenge in the years ahead.

While many thought low oil prices would dent the emirate’s growth prospects, nothing concrete has come to the surface to substantiate the misplaced predictions. The credit for the economy’s robustness goes to the UAE rulers, who have carefully pursued a path of diversifying their sources of revenue.

The UAE capital has one of the most efficient and effective ports in the world, let alone region, making the city an ideal stopover for freight traffic moving between the eastern and western parts of the world. It is one of the region’s most dynamic trade and re-export destination, besides being an important industrial hub for the entire nation.

The government has also put in place measures that make Abu Dhabi a great financial services hub, and facilities like the Abu Dhabi Global Market are already attracting world class players like Macquarie Capital and Aberdeen Asset Management, making the sector all the more valuable.
Real estate sector gets ready for heightened activity with 10th edition of Cityscape Abu Dhabi

Abu Dhabi, UAE – Abu Dhabi is fast emerging as the prime financial, trading, logistics and business hub in the region and might well be giving neighbouring Dubai a worthy challenge in the years ahead.

While many thought low oil prices would dent the emirate’s growth prospects, nothing concrete has come to the surface to substantiate the misplaced predictions. The credit for the economy’s robustness goes to the UAE rulers, who have carefully pursued a path of diversifying their sources of revenue.

The UAE capital has one of the most efficient and effective ports in the world, let alone region, making the city an ideal stopover for freight traffic moving between the eastern and western parts of the world. It is one of the region’s most dynamic trade and re-export destination, besides being an important industrial hub for the entire nation.
The government has also put in place measures that make Abu Dhabi a great financial services hub, and facilities like the Abu Dhabi Global Market are already attracting world class players like Macquarie Capital and Aberdeen Asset Management, making the sector all the more valuable.

All this economic commotion has naturally attracted top human talent from across the world to this vibrant city, giving way to a constantly rising need for accommodating a rising population.

This influx of workers and professionals has boosted the emirate’s realty sector, making it a lucrative investment destination that provides great returns to investors.
Realty action

According to UAE real estate portal Bayut.com, apartment rental yields in Abu Dhabi outshine many global cities, including Dubai, with returns going as high as 9.2% in certain bed categories.

The portal said average apartment rent yield in the emirate remained 6.75% in February 2016, much more attractive than Dubai, where average apartment yields were 5.5%. However, it must be noted that these yields are still higher than established global cities like London and Hong Kong, where returns are 4% at best, according to Global Property Guide.

Bayut said average apartment sale prices grew by 5.3% MoM in February, with studio apartments scoring high on both yields (9.2%) as well as sale price growth (5.3%). Yields for one-bed and two-bed apartment categories were recorded at 7.7% and 6.9%, while sale prices for the two categories returned increases of 1.9% and 2.8%.

If this wasn’t enough, the 3-bed apartment category posted an impressive average sale price growth of 9.4%, along with equally impressive rental yield of 6.5%. They portal said Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island remained the most popular localities for buying apartments in February 2016.

Although the realty market already guarantees lucrative returns, it is to become even more secure with the implementation of the new property law, which aims to make investments safer and puts real estate developer under more regulations.

The law, which became effective on January 1, will likely be a key point of discussion at the 10th anniversary edition of Cityscape Abu Dhabi, a standout real estate exhibition in the region. Scheduled to be held at Abu Dhabi National Exhibition Centre on April 12-14, the exhibition would bring together industry experts and stakeholders and is likely to witness the launch of numerous new mega realty projects by keen developers.

Just like in earlier editions, The Abu Dhabi Market Overview that will be held on the opening day will see valuable discussion on the real estate trends, economic aspects and the market’s prospects in the coming months. Bayut.com is the online media partner for Cityscape Abu Dhabi and their team will be available at the show to further highlight the market’s strengths.

It appears that the emirate’s real estate sector is pushing ahead full steam and the expected project launches at the Cityscape Abu Dhabi are set to make the sector even more interesting for investors as well as end users.