BUYER'S GUIDE

Abu Dhabi Finance

ADF Guide to buying property in Abu Dhabi

WHY

  • Abu Dhabi is one of the world’s richest cities and the world’s 3 largest oil exporter.
  • The Government is diversifying away from oil and natural gas and is placing greater emphasis on tourism, industry and real estate.
  • The long term vision of the Government in the strategic urban planning of Abu Dhabi Plan 2030.  Plan 2030
  • The residential market is currently undersupplied by approximately 34,000 units and the city is projected to grow to over three million people by 2030.
  • Exceptional rental yields, currently in the region of 10-15%, whereby rent is generally paid upfront annually to the landlord.
  • No capital gains tax on sale of property and no tax on rental income in the U.A.E. Note: you may be liable for tax in your home country.

 WHERE

There are designated areas where foreign nationals can invest in property.

Al Reem Island

Al Reem Island is just 300m off the coast of Abu Dhabi. Covering 6.5 million sq mt, it is the largest natural island in Abu Dhabi and on completion will be home to more than 100,000 residents.The island is easily accessible via the Dubai-Abu Dhabi highway and will include business, commercial and residential districts. Amenities will include, schools, mosques, healthcare centres, shopping malls, beaches, golf courses and landscaped areas.

Abu Dhabi Finance are financing the following developments on Al Reem Island:

Al Raha Beach

Al Raha Beach is a waterfront city stretching 11 kilometres of coastline just off the main Abu Dhabi-Dubai highway. Al Raha beach enjoys an enviable location just 20 minutes from downtown Abu Dhabi and less than 10 minutes from Abu Dhabi International Airport. The development will include hotels, beaches, marinas, education and healthcare services and will also be home to Abu Dhabi’s new World Trade Centre Building.

There will be 11 individual precincts linked by bridges and a network of canals providing water transport to the neighbouring cultural and tourist attractions on Yas and Saadiyat Islands. The development will house 120,000 residents on completion.

Abu Dhabi Finance are financing all Aldar residential projects on Al Raha Beach. Aldar

Saadiyat Island

Saadiyat Island is Abu Dhabi’s main cultural district. It will be a mixed-use development of residential, commercial and recreational projects split into seven distinct districts.

Saadiyat will have 29 hotels, three marinas and two golf courses, one of which will be the only Gary Player designed course in the UAE.

The cultural District will include the world’s largest Guggenheim Museum, the first Louvre Museum outside of Paris, the Sheikh Zayed National Museum, a Performing Arts Centre and a Maritime Museum.

Abu Dhabi Finance are financing TDIC’s  Saadiyat Island Villas. TDIC

 

HOW

Contact Abu Dhabi Finance now and allow Compass guide you through the process.

The Mortgage Process

Approval in Principle

  1. One of our highly skilled Mortgage Advisors will conduct a comprehensive introductory meeting with you over the phone outlining the steps involved in the Mortgage Application Process.
  2. The Mortgage Advisor will request that you submit relevant documentation to allow them assess your eligibility for a non-resident mortgage.
  3. Your Advisor will then confirm how much you may be eligible to borrow, which will give you the comfort to finalise your purchase through a Developer or Real Estate Agent.
  4. The cost involved in obtaining a mortgage is outlined in our Non-Resident Fees and Charges Fact Sheet.
  5. When you have selected your property Abu Dhabi Finance will then issue your Formal  Loan Offer.

The Buying Process

  1. When purchasing a property in Abu Dhabi you can buy directly from the developer or from a Real Estate Agent, and your purchase may be on the Primary or Secondary market.

i.  The Primary Market is when you purchase directly from the developer. The price is fixed and usually inclusive of all costs.
ii.  Once you have selected your property you will complete a reservation form and pay a booking deposit of 5% to 10%.*
iii.  Within four weeks of your reservation you will receive your Sales and Purchase Agreement (SPA), which is the formal contract for your property. The SPA will contain a copy of your unit floor plan and a stage payment schedule.

 *Booking deposits may vary from Developer to Developer and Agent to Agent.

2.  The Secondary Market is when you purchase your property from a Reseller (not directly from the developer)and this is normally through a Real Estate Agent. Prices on the Secondary Market can be negotiable and may be determined by the seller’s original price, the seller’s financial circumstances and current market conditions.

i.  Once you have agreed a price you will then sign a Memorandum of Understanding (MOU) and pay a non-refundable deposit of between 2% and 10%. A date for transfer of the unit, from the seller to the buyer,  will be agreed at this stage. The transfer is normally complete within 4 weeks of signing the MOU, you will then pay any monies due to the seller, the developer and the Real Estate Agent. With Secondary Market purchases the standard agent’s commission is 2% and the standard transfer fee is 2%. Normally, you will receive your SPA from the developer within one month of transfer. If the property is under construction the buyer will continue to make stage payments to the developer as per the SPA.*

 *The terms of the MOU may vary from agent to agent.

NOTE : It is not a requirement under UAE law for a lawyer to assist in the purchase process, however if you wish to consult a lawyer there are several firms in Abu Dhabi that can offer you independent conveyancing advice.

 

WHO

Aldar

Aldar are one of the major developers in Abu Dhabi, owning over 50m square metres of land in the Emirate. Aldar’s two major projects are the Al Raha Beach and Yas Island Projects. Yas Island hosted the Formula 1 Grand Prix in November 2009 and is also home to the world’s first Ferrari World theme park.

Abu Dhabi Finance are financing all Aldar residential developments including their Al Bandar project which is due for completion in February 2010.

Sorouh

Sorouh is a master developer in Abu Dhabi owning approximately 20% of Al Reem Island. Sorouh invested AED 25 billion in Shams Abu Dhabi, it’s flagship project on Al Reem Island. Currently under construction is the Gate District of Shams which includes the iconic Sun and Sky Towers, due for completion in mid 2010. Tala Tower in the Marina Square district of Al Reem Island is also under construction by Sorouh and is due for completion in early 2010.

Abu Dhabi Finance are currently financing Sorouh properties.

TDIC

Tourism Development and Investment Company(TDIC) is a master developer of major tourism destinations in Abu Dhabi and is behind some of Abu Dhabi’s most prestigious projects including Saadiyat Island.The first 250 villas in its Saadiyat Island project were launched with prices starting from Dhs6.5m. The Saadiayat Beach properties overlook either the coast or the Gary Player golf course, and are due for completion in 2010.

Abu Dhabi Finance are currently financing TDIC properties.

Profile Group Properties

Profile Group Properties  was the first company to start selling real estate to all nationalities in Abu Dhabi. Profile have two towers, Marina Heights I and Marina Heights II in the Marina Square District of Al Reem Island.These two projects are amongst the most advanced on Reem Island, with completion expected by early 2010.  As a result, Profile Group Properties is in the unique position of having a significant number of near ‘ready to occupy’ apartments available to offer investors and homeowners alike.

Green Emirates

Green Emirates have successfully launched many projects in Abu Dhabi including more than 10 towers on Al Reem Island.

Abu Dhabi Finance are currently offering finance on one of these towers;  Ocean Terrace in Marina Square on Al Reem Island. This  tower on Al Reem Island together account for 829 high quality apartments, and both are expected to be completed by the early 2010 which means they present an attractive option for prospective owner-occupiers.

WHEN

NOW is the time to finance your investment property in Abu Dhabi;

  • Accessibility to non- resident lending
  • Currently exceptionally high rental yields
  • Good potential for capital appreciation
  • First phase of units nearing completion

 

WHAT

WHAT’s stopping you? Take the first step towards investing in Abu Dhabi and contact Abu Dhabi Finance  now(link to contact us section of the website) to have an in-depth discussion with one of our experienced non-resident advisors.