Investment in Abu Dhabi real estate for sale

In Abu Dhabi, the property for sale is short as compare to the demand. This is because many foreigners are coming to Abu Dhabi and want to invest in the real estate of Abu Dhabi and most wants to live in this city for this they wish to have their own home but there is few real estate. For this reason there are construction going on for the Abu Dhabi real estate sale and soon there will be a total oversupply of property. This supply constraint with relation to demand is due to the increased price of building material and labor costs.

The new real estate schemes in Abu Dhabi will be released in a controlled fashion so can avoid an oversupply. With this the population of this city is increasing day by day that is putting pressure on the real estate sector. The current capital growth of this city appears to remain same in the short and medium term because the real estate market in Abu Dhabi is still developing and has no link with the financial market.

This rapid price growth in the real estate market has forced some of the investors to resale their property in Abu Dhabi although their building is still under construction. To earn profit in this way is called flipping. This type of investment real estate market is uncommon in Abu Dhabi. With this some investors in real estate of Abu Dhabi want a longer term real estate investment. For this they give their property for rent. Investors investing in this type of investment are known as buy to let investors. But for this the price of the real estate for sale in Abu Dhabi has to rise so the property rental returns gains lower yields.

If you are interested in investing in the real estate for sale in Abu Dhabi then you should not be worried about the tax as there is no income or capital gain tax for a residence in Abu Dhabi. One can have a real estate in Abu Dhabi on a leasehold basis of up to 99 years and no freehold is available.  The cost that you have to bear for buying a property in Abu Dhabi is around 1.5 per cent of the price of the property in Abu Dhabi for sale. 

Abu Dhabi is establishing itself as a major tourist destination as it has a sub tropical climate and unspoiled beaches and cultural sites. There are many things that a tourist is attracted towards like the wildlife reserve, public library, Louvre and Guggenheim museum, the national theatre and the Saadiyat Island and lots more. The rapid growth of Abu Dhabi and the rising tourism levels is increasing the demand for Abu Dhabi real estate for sale. Therefore due to the demand of property, construction is also done to fulfill the demand in future. So if you are interested to invest in Abu Dhabi real estate, do invest without thinking more on it as you definitely will get profit on your investment in huge range.