Kavan Choksi shares that the Abu Dhabi real estate market, like many markets around the globe, suffered heavily during the pandemic. Stringent travel restrictions drove away potential investors, and commerce, in general, reached an all-time low. As a result, Emir Sheikh Khalifa bin Zayed bin Sultan Al Nahyan has taken the following steps to attract foreign buyers:
Opening Borders to Tourists
Fortunately, the Abu Dhabi real estate sector quickly regained momentum. Reports indicate that the market recovered most of its losses in the past year and a half as the UAE scaled back its COVID restrictions and started accepting more tourists.
The UAE has always had a booming travel sector. However, it successfully utilized peak lenient travel demand while the rest of the world was still in lockdown. Tourists had few other options for international travel, notes Kavan Choksi.
Federal Commercial Companies Law
Kavan Choksi explains that the UAE’s decision to push the federal Commercial Companies Law (CCL) drew the interest of millions of investors worldwide. Traditionally, foreign investors can only own 49% of UAE mainland companies. However, the CCL allows investors to take 100% ownership if they are the majority shareholder.
This change will bring an influx of sales to the real estate sector. New shareholders and executives will need real assets to back the UAE mainland companies under their full ownership.
Bottom Line
Kavan Choksi believes that the Abu Dhabi real estate sector will continue thriving, and most of its new investors will come from overseas. The UAE’s favorable tax breaks and foreign investment policies attract high-net-worth individuals worldwide. No other country allows you to purchase multiple properties quickly without adhering to exorbitant tax rates.
However, as with any other asset, take Abu Dhabi real estate investment opportunities with a grain of salt. If you get stuck with a bad deal, you might have trouble turning a profit no matter how many years pass.