More investments expected as Capital eases real estate rules
abu dhabi — The new changes to Abu Dhabi’s real estate law — allowing foreigners full ownership of properties in designated zones — are bound to increase investor confidence, promote transparency in the market, and boost long-term investments, a chief developer and a number of officials have said.
Under the latest changes — recently issued by the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan — non-Emiratis and companies owned by foreigners are now allowed to own and acquire all the rights of properties within investment zones.
Talal Al Dhiyebi, CEO of Aldar Properties, on Thursday hailed the move as a “game-changer”, especially for investors.
“Previously, it was a 99-year lease. But this fundamental shift in the market, where investors now get full freehold ownership of land or properties, will enhance economic activities in Abu Dhabi,” he told Khaleej
at a Press conference. “The new rules will also reduce the cost of registering the land. Previously, under the long lease, it was costing the investors four per cent of the value of the property, but now it will be down to two per cent, which is another gamechanging development.”
Al Dhiyebi said the real estate market in Abu Dhabi projects a 40 to 50-per-cent growth in the offplan sales in 2019, compared to 2018, with specific targets in new international markets, such as India and China. He said investors from those parts of the world have shown a lot of interest in investing in Abu Dhabi.
Falah Mohammed Al Ahbabi, chairman of the Department of Urban Planning and Municipalities, said: “With the changes to the real estate law, residential units in special designated investments zones will be registered under Abu Dhabi’s freehold law. Currently, there are 29 investment zones in Abu Dhabi.”
Saif Mohammed Al Hajeri, chairman of Abu Dhabi’s Department of Economic Development, said these changes come on the heels of the introduction of other policies, such as long-term visas for investors and a law that allows certain corporations to own 100 per cent of their companies in specific industries.
All these have been aimed at driving economic growth in Abu Dhabi, he said.
This fundamental shift in the market will enhance economic activities in Abu Dhabi. The new rules will also reduce the cost of registering the land.”
Talal Al Dhiyebi, CEO, Aldar Properties
With the changes to the real estate law, residential units in special designated investments zones will be registered under Abu Dhabi’s freehold law.”
Falah Mohammed Al Ahbabi, chairman, Department of Urban Planning and Municipalities
The new real estate law will definitely increase transparency among investors and boost investment in the real estate sector.”
Saif Mohammed Al Hajeri, chairman, Department of Economic Development