Abu Dhabi’s government has made changes to real estate laws allowing foreigners to own freehold property in designated zones to increase foreign direct investment and boost the economy.
“The modernisation of the real estate law reflects the government vision to support and develop the business environment in Abu Dhabi, along with the development of investor services and procedures,” said Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Until the changes, ownership of property was only allowed for UAE and GCC nationals.
Now residential units in special designated investments zones, such as the one close to the international airport, will be registered under Abu Dhabi’s freehold law, with property ownership deeds issued to investors.
The Wahat Yas model at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (right), attends the opening of Cityscape Abu Dhabi. Mohammed Al Blooshi for Ministry of Presidential Affairs
Abu Dhabi's Department of Urban Planning and Municipalities at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Aldar's booth, featuring 'Lea' at Cityscape Abu Dhabi 2019. The ‘Lea’ scheme is on the northern coast of Yas Island. Reem Mohammed / The National
Abu Dhabi's Department of Urban Planning and Municipalities at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Sheikh Hazza bin Zayed, UAE Head of State for National Security Advisor, at Abu Dhabi's Department of Urban Planning and Municipalities booth at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Aldar's booth, featuring Lea at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
A man cycles and powers a juice mixture at Tamouh's booth at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Tamouh's booth at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Wahat Yas model at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Riviera by Azizi at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Riviera by Azizi at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Riviera by Azizi at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Aldar's booth, featuring "Lea" at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Aldar's booth, featuring "Lea" at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Aldar's booth, featuring "Lea" at Cityscape Abu Dhabi 2019. Reem Mohammed / The National
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (second left), attends the opening of Cityscape Abu Dhabi, at Abu Dhabi National Exhibition Centre (ADNEC). Saeed Al Neyadi / Ministry of Presidential Affairs
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (second left), attends the opening of Cityscape Abu Dhabi. Mohammed Al Blooshi for Ministry of Presidential Affairs
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (centre), attends the opening of Cityscape Abu Dhabi, at Abu Dhabi National Exhibition Centre (ADNEC). Seen with Falah Mohamed Al Ahbabi, Chairman of the Department of Urban Planning and Municipalities and Abu Dhabi Executive Council Member (left). Mohammed Al Blooshi for Ministry of Presidential Affairs
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (left), attends the opening of Cityscape Abu Dhabi. Seen with Falah Mohamed Al Ahbabi, Chairman of the Department of Urban Planning and Municipalities and Abu Dhabi Executive Council Member (right). Mohammed Al Blooshi for Ministry of Presidential Affairs
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (second left), attends the opening of Cityscape Abu Dhabi. Mohammed Al Blooshi for Ministry of Presidential Affairs
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (second left), attends the opening of Cityscape Abu Dhabi. Mohammed Al Blooshi for Ministry of Presidential Affairs
Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council (second left), attends the opening of Cityscape Abu Dhabi. Mohammed Al Blooshi for Ministry of Presidential Affairs
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Foreign investors in Abu Dhabi property were previously granted leasehold arrangements with a maximum 99-year time period.
“The government wants to stimulate fresh demand for Abu Dhabi real estate and this is one of things that will help do this,” said Craig Plumb, head of research at consultancy JLL.
“None of the current 99-year leases held by foreigners have expired so nobody really knows whether the valuation of a freehold investment would be more than that of a leasehold. You can’t calculate any additional property value from this.
"But certainly, from a sentiment point of view, it could buoy the market to know that as a foreigner you can hold property in perpetuity.”
The legal changes will also help to level the playing field between Abu Dhabi and Dubai, where foreigners are already allowed to buy freehold property in investment zones.
Abu Dhabi developer Aldar Properties welcomed the law on Wednesday. Its Alreeman scheme, with plots of land for sale and residential development, is in such an investment zone.
“This is a game changing announcement that will not only drive the maturity of Abu Dhabi’s real estate market, but also increase transparency and provide clarity of title for property owners, increasing long-term investment, injecting more liquidity into the market and encouraging longer-term residency,” Aldar chief executive Talal Al Dhiyebi said.
The changes were enacted after a study examined the needs of the real estate sector, including meetings with investors, developers and others, the Abu Dhabi Executive Council said.
Abu Dhabi, like the rest of the UAE, wants to attract more foreign investment to boost the non-oil economy.