Thinking of owning a home in Abu Dhabi but unsure where to begin? You’re not alone! Many first-time buyers—especially expats—share the same concerns. Let’s tackle the top five questions most people ask when buying a home in our city, so you can move forward confidently.
1. Can Foreigners Really Buy Property in Abu Dhabi? Absolutely! Expatriates can own homes in designated investment zones like Al Reem Island, Yas Island, Saadiyat Island, and Al Raha Beach. When you buy in most places, you also get Freehold title—ask us where Freehold doesn’t apply.
2. What Legal Stuff Should I Know Before Buying? Owning a home isn’t just about signing papers—it involves some legal steps you need to be aware of:
- MOU (Memorandum of Understanding): This outlines the terms of the sale before the actual transfer of title.
- NOC and Due Diligence: Always get a No Objection Certificate to ensure the property is free from any outstanding bills and legal issues.
- Property Registration: Every sale needs to be registered with the Abu Dhabi Municipality. Once that’s done, you’ll get a title deed as proof of ownership, and it also shows on your Dari app.
3. What Are My Financing Options? There are several ways to finance your home. Banks typically offer mortgages covering up to 80% of the property’s value (they can even cover the transfer fee), especially for first-time homebuyers. If you prefer a Sharia-compliant option, Islamic banks offer financing based on a profit-sharing model, rather than traditional interest. It’s worth shopping around for the best rates and terms, so you can find a deal that fits your situation.
4. What About Taxes and Fees? Good news—there are no property taxes in our city! But, like any investment, there are some fees to be aware of:
- Registration Fee: 2% of the home’s value, paid to the Abu Dhabi Municipality.
- Agency Fee: Typically, 2% of the price is paid by the buyer to the real estate agent.
- VAT: While residential properties are exempt, commercial properties carry a 5% VAT.
5. Can I Rent Out My Property? Yes, you can! After you’ve bought your investment, you can rent it out and even register the rental agreement through the Tawtheeq system. And here’s a bonus—the city’s new Rental Index helps you set a fair price, ensuring you get a steady income.
Abu Dhabi is full of opportunities for both locals and expatriates. Whether you’re looking for your dream home or a smart investment, there’s something here for everyone. Still have questions? Feel free to reach out to us at 800-2732 or email enquiries@cromptonpartners.com. We’re here to guide you every step of the way!
