Real Investment Comparison: Dubai vs Abu Dhabi Homes – Who Wins

dubai-vs-abu-dhabi

You have probably gone through the best countries to invest in the list containing Dubai vs Abu Dhabi Homes and found the UAE to be the best country.

But after that when you researched a bit, there was nothing but an overwhelming feeling. That happens, especially if you are investing in a foreign country for the first time.

With lots of regions to choose from, it’s easy to get stuck in decision paralysis forever.

Hence, we have come up with this detailed comparison between the capital of UAE and as you know the Venice of the Gulf, Dubai.

Without further ados, let’s get started.

Overview of Dubai’s Real Estate Market:

In Q3 2023 there were 31,219 real estate transactions.
The total value of these transactions was 97.5 billion AED.
It indicates a 4% increase in volume and an 8 % growth in value compared to the previous quarter.
There was a 22% surge in transaction volume and a 40% increase in total transaction value.
The average price per square foot increased by 13%, reaching peak levels in 2014.
Mortgage transactions grew by 16% compared to the previous quarter, 13% on a year-on-year basis.
Off-plan sales were stable but 25% higher than the previous year; resale transactions accounted for 15%.
Commercial property sector: 37% increase in transaction volume compared to the previous quarter, 82% year-on-year growth.
Luxury property market stability in Q3, 52% year-on-year growth; 75% of transactions for prime properties over $10 million were ready property transactions.

Overview of Abu Dhabi’s Real Estate Market:

The ValuStrat Price Index showed 4.3% annual growth, with villas outperforming apartments.
Rental values expanded by 7% annually, with notable increases in villa and citywide apartment rents.
Ready home median prices increased by 1.7% YoY, while off-plan properties saw a surge of 75.1% in transactions.
Commercial sector: Office stock at 3.9 million square meters, median office sales prices grew by 2% quarterly.
The industrial sector remains robust, and industrial rental rates, and warehouse prices provide stability for investors.
Abu Dhabi’s real estate market resilience is attributed to strategic growth, balanced supply and demand, and solid economic fundamentals.

Dubai Vs Abu Dhabi: The Showdown

Factors of Comparison Dubai Abu Dhabi
Market Maturity More mature, opened to foreign investors earlier Less mature, off-plan market currently blooming
Stability & Risk Factors More volatile, driven by foreign investment More stable, reliant on government spending
Investment Strategies & Pricing Generally higher prices, more mature market Lower prices, attractive for affordable investment
Legislation Comprehensive legislation, various visa options Legislation includes investment zones for foreign ownership
Factors Beyond Investment Strategic global transit hub, high tourism impact Geographical advantages, natural islands, cultural differences
Population Larger population (3.4 million), busier feel Smaller population (1.5 million), quieter atmosphere
Tourism Higher tourist influx, over 11.4 million visitors in 10 months of 2022 Lower tourist numbers, 4.1 million visitors in the same period
Law and Residency Various investor visa options, flexibility 5-year visa option, different residency options based on property investment
Free Zones Over 20 free zones with diverse opportunities Free zones like ADGM, KIZAD, Masdar City, ADAFZ, TwoFour54
Infrastructure Major international airport (Dubai International), larger annual customers Major international airports (Abu Dhabi International), smaller annual customers
Overall Real Estate Market Performance Higher growth in 2022: 12.8% for villas, 9% for apartments Lower growth in 2022: 1.5% overall
Investment Return ROI fluctuates between 5.6% to 9.2% ROI does not surpass 8%

Best Projects in Dubai

Sky Residences at Expo City, Dubai South

Sky Residences at Expo City is a new residential project with luxury 1, 2 & 3 Bed apartments. The amenities here are splendid. Mark our words, you won’t be able to take your eyes off the beautiful units here. On top of such luxury, the developers have ensured a flexible payment plan. You can register your unit with a 10% down payment.

Starting Price: AED 1,797,000
Payment Plan: 50:50
Handover: Q4 2026

Avant Garde Residences by Skyline

Avant Garde Residences at JVC is simply wow! Believe us, you won’t be able to find such studios or one- and two-bedroom apartments with outstanding features. Avant Garde Residences offers flexible payment payment plans. Initially, you have to pay a 10% down to reserve your apartment. During construction, you can pay 40% of the amount. The remaining 50% is payable at handover.

Starting Price: AED 950,000
Payment Plan: 50:50
Handover: Q4 2026

Best Projects in Abu Dhabi

Granada At Bloom Living

Granada by Bloom is the fourth phase of residential living at Bloom Living in Abu Dhabi. It offers a wide range of property types including studios, and 1, 2 & 3-bedroom apartments. With just a 5% down payment, Granada at Bloom Living makes booking simple, even though the industry standard is 10% or higher.

Starting Price: AED 591,000
Payment Plan: 80:20
Handover: Q4 – 2026

Bloom Holding Casares At Bloom Living

Enough of apartments! What about the townhouses in Abu Dhabi? Casare is the place to hunt for. Here you will find cozy townhomes with two or three bedrooms are the focus. With just a 5% down payment, Bloom Holding Casares makes booking simple, even if the industry typical is 10% or higher.

Starting Price: 1,600,000
Payment Plan: 80:20
Handover: Q1 – 2026

Aldar Selina Bay at Yas Island

We get it! The previous one can be out of budget for some. However, what if we tell you there’s another project that won’t disappoint you? Well, it is Aldar Selina Bay, You will find the best 4-bedroom townhouses for sale in Abu Dhabi. Aldar Selina Bay offers unbeatable units with luxurious features and striking surroundings.

Starting Price: AED 960,000
Handover: Q4 2027

Conclusion:

Both places cater to investors with different requirements in Dubai vs Abu Dhabi Homes. For example, if you are looking to invest in a place with high ROI, lots of tourists, fewer government restrictions, and lots of free zones, there’s no better place than Dubai. Yet, if your preferences are stable and less risky, you cannot go wrong with Abu Dhabi. Make sure you understand your goals before investing in any property like Dubai vs Abu Dhabi Homes.