The most recent property law in the emirate, signed by HH Sheikh Khalifa bin Zayed Al Nahyan on 10 August 2005, allows UAE nationals to own and trade land, GCC citizens to do so within designated investment areas and other expatriates to invest on a leasehold basis within these investment areas.

The initial property releases were for UAE Nationals only, but expatriate residents in Abu Dhabi who have long been waiting for the signal that they may be able to buy property in the capital, can finally do so.

The release of apartments on Reem Island and the announcement by Aldar that expatriates will be able to buy both villas and apartments on a 99-year lease when their Al Raha Beach project is released, has fuelled an unprecedented level of interest. Aldar have also indicated that they will announce around 20 new projects in the near future and Surouh has announced that they are actively seeking expression of interest from investors and developers for the initial release of plots on their Shams Abu Dhabi project on Reem Island, making this a really interesting time in this emerging market.

Why Abu Dhabi

Expectations are that as private investment from developers into Abu Dhabi increases, a competitive market will emerge for investors, both individual and institutional. Buy-to-let yields are likely to be attractive, given that the current demand for units to rent in the capital far outweighs the available supply. Combine the positive forecasts for Abu Dhabi’s economy and the extensive plans for tourism with the current tax-free investment environment and the fact that Abu Dhabi already has a legal structure in place for the ownership of property, and the future looks very bright indeed.

Residents who have long been paying ‘dead money’ in high rents will look forward to being able to invest into their own homes and seeing capital growth. The prospect of having ownership of the place you call home, without having to worry about tenancy contracts, is an attractive one to longer term residents, many of whom have put their roots down in the emirate.

The emirate of Abu Dhabi (´Father of the Gazelle´) has a natural beauty and is the largest, wealthiest and most populated of the seven emirates, occupying an area of 26,000 square miles. The Abu Dhabi population accounts for 1.702 million of the UAE population of 4.320 million (2004). Its coastline extends from the base of the Qatar Peninsula to the border of Dubai. South, it stretches into some of the world’s largest sand dunes in the oases of Liwa, and east to the ancient oasis of Al Ain. As a commitment to preserving and enhancing the environment within the emirate, over 120 million trees have been planted.

Abu Dhabi was the first emirate to export oil in 1962, transforming a small fishing village into one of the richest cities in the world. The emirate has over 90 per cent of the UAE’s oil reserves (92.2 billion barrels), and alone contains 10 per cent of the world´s oil reserves. At 213.5 trillion cubic feet, it is also estimated to have a fifth of the world’s natural gas reserves.

What can you buy in Abu Dhabi?

This is currently very much dependent on both your nationality and availability of stock. However, as projects are announced and the market develops, the choices will almost certainly increase.

At the time of going to print, the situation as summarised by Clyde & Co’s Abu Dhabi branch is as follows.

´Abu Dhabi´s eagerly awaited new property law, signed by HH Sheikh Khalifa Bin Zayed Al Nahyan on 10 August 2005, is now in force. The property law establishes a sound legal basis for the development, sale, leasing and mortgaging of property in Abu Dhabi.

The law grants differing rights of land ownership and rights to enjoy land to UAE nationals, GCC citizens and other expatriates. UAE nationals (or companies wholly owned by UAE nationals) can now own land anywhere within the emirate of Abu Dhabi. GCC citizens can own land in designated investment areas and lesser rights in land throughout Abu Dhabi. Other expatriates can acquire a usufruct of up to 99 years or a musataha right of up to 50 years renewable within the investment areas. The concept of usufruct and musataha are set out in the UAE Civil Transactions Law. It can be misleading to compare usufruct and musataha rights to forms of leasehold title found internationally.

Subject to that warning, both may be considered as forms of leasehold. The owners of a usufruct can use and enjoy land provided it remains in its original condition. Terms and conditions may apply in much the same way as for a long-term residential lease. A musataha holder, however, may build or plant on the land in question and can therefore have more flexibility than a usufructuary.´

When can you buy in Abu Dhabi

There is no time like the present. Interest in the projects that have been released to date has been extraordinarily high from all nationalities. The pent-up demand is such that the next projects to be released are likely to have the same response.

Where can you buy in Abu Dhabi?

This is currently possible within the first two investment areas that have been identified: Al Raha Beach & Gardens and Reem Island.

Please note: All the above information is correct at the time of writing. However, due to the speed at which the Abu Dhabi property market is evolving, it may well be outdated by the time you are reading this.