Among investors in the UAE, the most attractive cities are Dubai and Abu Dhabi – two of the largest and well-known Emirati centers. Foreign nationals make up 85% of Dubai’s population, indicating its significant appeal to expats. Abu Dhabi, in turn, often attracts investment from citizens of the Emirates and nearby Arab countries. However, the Abu Dhabi property market also presents interesting opportunities for foreign investors.
Dubai is in the lead. According to the Dubai Land Department, the volume of construction in this emirate is constantly growing and has even decreased slightly due to the coronavirus pandemic. Thus, in the first quarter of 2022, 15,441 units were built. In 2020, this figure was 30,019 units, and in 2021 – 29,180.
The Abu Dhabi Land Department is also moving ahead with the government’s urban development plan, which aims to improve urban planning, construction, and transport infrastructure. Fewer than 200 units were built in the first quarter of 2022, but another 9,588 units are scheduled to be completed by the end of the year. Abu Dhabi saw 4,182 new housing units built in 2021, according to CBRE.
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Prices
Real estate prices in both cities are attracting the attention of investors. In Dubai, apartment prices rose by 9.6% in May 2022, and villa prices rose by 19.8% compared to the same period in 2021. The average price per square meter for apartments was $3,229 and for villas – $3,832. In Abu Dhabi, the average cost per square meter of apartments is $2969, and villas are $2409.