Kenyan investors have long been interested in Dubai’s real estate market; nevertheless, a rising potential exists in Abu Dhabi, where the market is steadily growing. Property in Abu Dhabi has become more attractive to foreign investors due to lower entry prices compared to Dubai, as well as government incentives for foreign ownership. We will take a look at the main factors fuelling the increasing popularity and demonstrate why it represents a significant opportunity for investors.
Market Growth and Stability
In the year 2024, the real estate sector in Abu Dhabi saw substantial growth patterns. Approximately AED 96.2 billion ($26 billion) worth of real estate transactions were reported in the emirate, which represents a 10% rise from the previous year’s amount. With a total of 28,249 trades, the number of transactions increased by around 24%.
Comparative Affordability
Compared to Dubai, Abu Dhabi’s real estate industry provides more affordable investment alternatives. As of January 2025, the average price for a one-bedroom apartment in Abu Dhabi is between AED 1 million to AED 1.2 million, while similar properties in Dubai are around AED 1.4 million. The price variations shows Abu Dhabi’s more affordable, making it a good alternative for investors looking for lower entry costs.
Diverse Investment Opportunities
The panorama of real estate in Abu Dhabi is quite diverse, consisting of high-rise apartments, spacious villas, and luxurious beachfront estates. A significant increase of 20% in sales prices and a rise of 19% in rental rates happened in 2024 in the housing industry. In terms of price increase, villas have outperformed apartments, which is indicative of high demand in the premium market category.
Economic Diversification and Infrastructure Development
The demand for commercial and residential properties has increased as a result of the emirate’s emphasis on finance, tourism, and technology, which has attracted a significant number of businesses and expatriates. The Abu Dhabi Global Market (ADGM) reported a 31% increase in company registrations during the first half of 2024, which is indicative of a successful business environment. The city’s appeal to investors is further strengthened by ongoing infrastructure projects, such as sustainable urban developments and transportation upgrades.
Investor-Friendly Policies
The Abu Dhabi government has taken steps to create a favourable climate for real estate investment. Long-term investment visas, flexible foreign ownership regulations, and streamlined property registration processes have all helped to increase the emirate’s desirability.
These policies not only offer investors protection and stability but also foster a seamless environment for long-term growth, positioning Abu Dhabi as a top choice for real estate investment in the region.
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