Real Estate Investment Comparison: Opportunities Across the Seven Emirates
The United Arab Emirates has always been a focus since long for investment opportunities at the global level. There are several reasons why foreigners show interest in the UAE's real estate market. This page will comprehensively compare such real estate investment opportunities across the Seven Emirates and discuss the Strengths and niches of each Emirate's real estate market so you can plan your investment, consider economic stability, demand, location, ROI on rentals or capital gains, financing, and mortgage while preparing for investment.
Abu Dhabi
- Economic Stability: Abu Dhabi's real estate market is projected to grow 5 to 6 % in 2025.
- Market Size and Demand: The market size is growing yearly, and in 2024, more than 25k transactions worth over $25 billion were recorded.
- Property Types: The most popular properties are luxurious villas, penthouses, commercial properties, duplexes, and freehold land.
- Location: Some trending locations for real estate investments are Al Reem Island, Yas Island, and Zayed City.
- Price Points: The property cost for each square meter is between AED 500-1000 more or less.
- Rental Yields: The average rental yields remain less than 10% but can be highly lucrative.
- Financing and mortgages: You can easily get funding and readily available mortgages at a reasonable interest rate, up to 75% of the property value.
- Regulations: Investing in real estate in Abu Dhabi is risk-free, as the regulatory systems are well-established.
- Taxation: There's very low or nil tax on capital gains for real estate investment in Abu Dhabi.
- Foreign Ownership: Abu Dhabi allows foreign ownership in selected areas.
Dubai
- Economic Stability: Remaining stable with a profit margin of AED 1.3 billion in 2024.
- Market Size and Demand: The projected market value of Dubai by 2030 is nearly over USD 50 billion.
- Property Types: Townhouses, apartments, commercial buildings, and office spaces are the best investments.
- Location: Dubai Marina, Palm Jumeirah, International City, and South Dubai are trendy locations for real estate investment.
- Price Points: The property can cost around AED 1400 per sq ft in many luxurious areas.
- Rental Yields: The rental yield is stable at 7% in the most popular areas.
- Financing and mortgages: Easily available for high-end properties up to 70%.
- Regulations: An easy process for buying, purchasing, and renting.
- Taxation: Low or nil in most cases.
- Foreign Ownership: Freehold properties can be owned by foreigners.
Sharjah
- Economic Stability: The past quarter has been highly stable, with over AED 12 billion in transactions.
- Market Size and Demand: Real estate is showing significant growth with over 30% profit generating more demand in real estate and attracting more investors.
- Property Types: Apartments and villas are currently trending. Commercial buildings and freehold lands are showing potential ROI.
- Location: Al Majaz, Al Nahda, Aljada by Arada, and Maryam Island are some of the top yet attractive locations for real estate investment.
- Price Points: Various properties' costs start at AED 600/sqft and AED 800/sqft in posh areas.
- Rental Yields: rental gains are stable between 4% and 5% gross profit.
- Financing and mortgages: can own a property with up to 10% upfront, and the rest is easily financed.
- Taxation: Generally, capital gains are nil, making it a better location for Real Estate investment.
- Regulations: The Sharjah real estate allows different nationalities to sell and purchase properties with full ownership rights. The regulatory process is hassle-free and smooth.
- Foreign Ownership: Allowed without a residency Visa on freehold and leasehold locations in selected areas.
Ajman
- Economic Stability: Showing stability and potential real estate growth.
- Market Size and Demand: The market is growing at a pace. Over AED 3 billion worth of transactions were recorded in the recent quarter.
- Property Types: Apartments, commercials, penthouses, plots, and villas are best.
- Location: Al Nuaimiya and Ajman Downtown suit all kinds of investors.
- Price Points: Cost ranges between AED 700/sqft and AED 1500/sqft in most of the locations in Ajman.
- Rental Yields: On average, 7% to 9% of ROI has been seen, which is moderately growing.
- Financing and mortgages: Up to 85% of the property can be easily financed at an attractive interest rate.
- Foreign Ownership: Only freehold areas allow expats to own and sell properties.
Umm Al Quwain
- Economic Stability: Growth is quick, with up to 15% growth in selected areas.
- Market Size and Demand: Demand for investing is increasing day by day. and
- Property Types: Waterfront properties, commercial spaces, and off-plan projects on Sobha Siniya Island and the nearby area.
- Location: properties near highways and borders are great for investment.
- Price Points: Comparatively lower than Dubai and Abu Dhabi.
- Rental Yields: Yearly average growth of 7% to 9% has been seen.
- Financing and mortgages: Anyone can start investing in Umm AI Quwain with up to a 25% down payment.
- Foreign Ownership: It has some free zones for investment for Expats.
Ras Al Khaimah
- Economic Stability: The economy is emerging with stability and showing high potential growth in the upcoming years.
- Market Size and Demand: The market size and demand are incredible, showing over 60% growth, and prices have increased by up to 20% yearly.
- Property Types: Residential and commercial property types are available.
- Location: Al Marjan Island, attracting many global investors' interest.
- Price Points: Posh locations can have property costs that range from AED 1200 to AED 1800 per sq ft.
- Rental Yields: It is expected to earn between 7% and 9 % by the end of 2025.
- Financing and mortgages: Available for up to 70% of property value but may vary for non-residents.
- Regulations: Easy regulations and processes for property sale and purchase.
- Foreign Ownership: Freehold ownership is available for expats in certain locations.
Fujairah
- Economic Stability: The economy depends on fishing and agriculture, which is why it has a strong strategic position in the real estate market.
- Market Size and Demand: Demand and market size are in an early phase but will show growth in the next 10 years.
- Property Types: Apartments, townhouses, freeholds, villas, and commercial land are available for investment.
- Price Points: Most locations are affordable and have low living costs.
- Rental Yields: Rental growth has ranged between 1% and 5% in recent years.
- Financing and mortgages: These are available on most of the properties in Fujairah up to 80%.
- Taxation: Capital gains are excluded from corporate tax.
- Foreign Ownership: Certain areas allow foreigners to invest in real estate.