The last few years have been some of the best for the Abu Dhabi real estate market. But from what we can see, a lot is coming along the road. Here’s our take on the state of the Abu Dhabi real estate market in 2020, as well as what to expect in the future.
The 2020 Rocket Fuel
There are massive expectations for the Abu Dhabi real estate market in 2020 for which the foundation is already laid out.
First of all, it is the work done by the Abu Dhabi Urban Planning Council (UPC). Their Abu Dhabi Vision 2030 is an exceptional one that guarantees economic, social, and urban development. This is a 25-year program that will set the course for Abu Dhabi’s real estate market in the coming years.
The government has also introduced a set of initiatives to strengthen the hospitality sector. The measures were introduced in 2019 and are still active in 2020 as well. The exemption of visas for transit travelers is one of those measures that is expected to bring solid results in this segment. UAE’s GDP is on a path to grow by around 2.2% in 2020. That is also seen as a good sign for the real estate market in the emirates, as well as in Abu Dhabi.
Abu Dhabi’s hospitality industry in 2020 will see the completion of new projects in Park View, the Fairmont Marina Hotel, Saadiyat Island, and others. A few more are on a path to be completed in 2021.
The Dubai 2020 Expo is also expected to put Abu Dhabi’s real estate investment opportunities under the spotlight. In the past, most real estate investors were local. The local real estate investments are not going to stop anytime soon, but much is expected from abroad. The fact that foreigners can receive a freehold title deed is a boost that will have a profound effect in the emirates.
ROI for Properties in Abu Dhabi
Real estate investors in Abu Dhabi can expect a solid 10% to 11% ROI. Some of the hottest investment spots include Khalifa City A, Al Reem Island, Yas Island, Al Raha Beach, Masdar City, and Saadiyat Island.
Office supply is predicted to reach 9.1 million square meters in 2020, while residential supply is expected to reach 637,000 million square meters by the end of the year. Then there is the retail supply, which will most likely rise to 5 million square meters before the year’s end.
Dubai may be the crown jewel in the United Arab Emirates and has the biggest real estate market in the country. But it is Abu Dhabi’s real estate market that opens better investment opportunities for both local and foreign investors.
Everything points not just to a great 2020, but also to excellent growth in the coming years. The only real unknown factor is which segment will grow fastest and will generate the highest ROI.