Abu Dhabi vs Dubai

For someone looking to invest at this time, how would you compare these two markets? Which has better opportunities for capital appreciation? Have Abud Dhabi prices risen as fast as Dubai?

 

Abu dhabi will surely have lot more appreciation than dubai , If they go in the similar fashion,but the prices in abu dhabi at present is alrady at a higher segment which might ultimately take time to appreciate.

 

Abu Dhabi is defiantly marching forward and there is allot of action over this way so yes I believe it is a good place to invest in.
Although I think Dubai has a long way to go still and there are lots of opportunities over there tide up with world class development for tourism and business.
I believe there is good money to be made from both areas and it is up to you or up to the investment opportunity you get to help make up made your decision on where to invest.

 

Hi I dont know about Abu Dhabi, but I know a lot of chanses for property investment in Dubai. If anyone itrested either in buying property or land, or in short term long term lettings in Dubai just let me know.

 

Both markets are incredibly active, but it is really difficult to buy in Abu Dhabi which suggests that this market could really be worth buying into. Resale premiums are rising (literally) on a daily basis and the developers sell anything they release instantly. I've struggled to buy here. Prices are high, but demand is astronomical.

 

Abu Dhabi is appreciating fast. We launched a project there, on Reem Island, 2 months ago and it has already appreciated at 20%. We are going to have another project launched soon, in the same area. Whoever is intersted to know more, send me your e-mails and I will contact you.

 

I belive both of them have the same opportunity however in Abu Dhabi its only leasehold for expats in Dubai its freehold.

 

Abu Dhabi is a great medium to long term investment. Resales are slow as the market is just really taking shape. Its mostly investors piling in to it right now.
Abu Dhabi, in December, released a master plan - a vision of Abu Dhabi in 2030 which was done by top planners and experts worldwide. The plan goes down in to as much detail as to how the roads will be sign posted. It is going to be a much better, upmarket city then Dubai. They plan to out do Dubai but want to be seen to be classier. However, Abu Dhabi take their own time on matters ... partially because they are so much richer than Dubai (they own 94% of the oil in the UAE). Abu Dhabi also has the highest GDP per capita of any city in the world.

If your outlook on property investment is to hold for a few years (at least 2-3 yrs), then Abu Dhabi property will do pheonomenally well. It is like buying in Dubai 4-5 years ago however the entry level prices are much higher.

 

Yes the starting prices are pretty high. Not sure how much higher they can go. Not sure how much rent is being charged in curren tproperties. You can get a resale for about 1500-1600 AED per sq ft. How doeas that compare with current prices in Abu Dhabi in established apartments? Not sure if this is already high in that market or just the normal prices. If anyone has info please let me know.

 

please keep me informed as well my email is persia . ltd @ gmail . com

 

Leasehold and freehold

Sorry, but this is not true. Abu Dhabi do now offer freehold. We have bought and sold freehold apartments there.

We would advise investors to clarify the position with each individual development as it does vary. Ie on one development the villas may be leasehold and apartments freehold.

 

Don't believe word of mouth. When signing put a condition on the booking form " subject to freehold property and not leasehold ". Remember the duty of the salesman is to sell so that he gets his commission.

I put a similar clause " subject to bank finance " on my booking form which saved me. The tussle between developer and finance house went on and my 3 payments were delayed because of this clause.

Don't believe word of mouth. When signing put a condition on the booking form " subject to freehold property and not leasehold ". Remember the duty of the salesman is to sell so that he gets his commission.

The developer could not cancel the contract until he issued a letter saying no finance. Luckily the developer was good and I did not face any adverse situations, Developers wait for you to default so that they can cancel your contract and sell to someone else for higher price.

Regards


Regards

Roshan

 

Yes property purchase must not be done in the rush without due preparation.


Regards,

Alex.

 

Capital appreciation at this stage would be Abudhabi. I was hoping that their prices would start off like Dubai, but they started where Dubai ended should say.

A 1 BDR with a good developer costed about 1.7 million dirhams. The bait of course was 70% on completion. If you try to work the numbers you would end up paying a monthly EMI of around 12000 per month for 70% leverage for a 15 year period and an interest of 8.5%. If you require a decent positive cash flow of Dhs 3000 per month, you would require to charge a rent of Dhs 15,000 per month which works to Dhs 180,000 per year.

How many would like to stay ina 1 bedroom paying Dhs 180,000 rent. The numbers don't match.

Unlike Dubai Abudhabi would be more of an equity market then a rental one. Pay 30% and towards or on completion sell off for a profit and walk away.

This is my opinion and I could be wrong, but that's how I see Abudhabi.

Regards

Roshan

 

Hi Roshan,

Who would you see as potential buyers of completed apartment? Overseas investors or locals? Mix of two?


Regards,

Alex.

 

Will AD launch as many projects as Dubai in the long run?it's difficult to imagine they will.After all,Dubai has gone mad for developing as the oil will run out soon.AD on the other hand doesn't have this problem so they don't need to build and replace oil revenue with tourism money etc.Is that the case?

 

Hi Alex,

I would imagine, it would be a mix of both. The locals who feel that they lost out on the Gold rush ad want to save future rental hikes by investing in a house.

Watch out for distress sales ??.

Regards

Roshan

 

Abudhabi wants to promote itself as a tourist destination. They have loads of money to do it.

Business is business and they will go to an extent.

Regards

Roshan

 

History shows that Dubai has always done better than Abu Dhabi and will continue the trend. Dubai properties will continue to grow higher and difficult to afford for the small investors. Abu Dhabi will continue to follow the path of Dubai and returns will be as good however more affordable than Dubai.
At present I believe Abu Dhabi is trying to catch-up with the Dubai market, hence giving it a great potential for growth. Dubai will continue to lead and grow.

 

You are right when you say Dubai has done better than Abudhabi.

Somehow I feel that Abudhabi starting prices on developments are high and not easy to digest. Investors are jumping over one another to buy.

Flipping would be the name of the game for Abudhabi, considering that the payment plans like 30-70 or in some cases 20-80....after which I seriously don't know how Abudhabi properties will perform in the long run.

What do you think of Ajman. I feel that the prices are good, infra structure at the moment poor but it would draw a lot of crowd from Dubai. Ajman is what Dubai was when the freehold properties were launched.

As you rightly said Dubai will become unaffordable in time to come.

PS: Are you from Dubai or outside. If you are a resident of Dubai, we would like you to join the Dubai chapter meetings.

Regards

Roshan