If you should rent or buy an apartment is a perpetual question asked by anyone moving from one to another place. But, in case you are moving to Abu Dhabi, then most people will tell you to buy.
Property prices are low; it’s relatively easy to get a loan, and pretty much everything else points to an excellent long-term investment. But then some are still on the fence, and sometimes it’s because of the lack of information about the real estate market, while other times because of the uncertainty about staying in the country long-term.
Here we have a list of factors that are worth considering. They will help you determine your best option – to rent or to buy an apartment in Abu Dhabi. In any case, know that there is an even selection of apartments for sale in Abu Dhabi as it is for rent.
What’s your financial situation?
If you have a good job that produces a decent income, the decision on whether to buy or rent is somewhat easier. But at the same time, you also need to make a down payment, which is 25% (the bare minimum for expatriates).
So, if you can make the deposit and afford the monthly installments, then you are in a good position to invest in an apartment in Abu Dhabi.
On the other hand, if you opt for renting, you will also be paying monthly installments, which are often even or higher than the potential mortgage rates for that same place.
The logic here is simple – why you shouldn’t pay towards owning an apartment. Once you are done paying off your loan – 5, 10, or 15 years later, you will own a piece of property in UAE, and that comes with quite a few perks.
In the meantime, you don’t even need to live there. You can easily rent the apartment and repay your loan from the collected rent.
How long do you plan to stay in Abu Dhabi?
If you plan to spend a year or two tops, then renting is probably the best option. That gives you plenty of flexibility as you can vacate the property with short 3-month notice.
But if you might be there for four or more years, then buying is a far better decision. Current apartment prices are quite low, and if we are to believe real estate experts, that won’t be the case for too long.
How’s the market doing?
In 2019, there was an oversupply of apartments. However, the market is now consolidated. Supply and demand are in harmony, and it seems lessons from the past are learned.
Real estate experts predict that 2020 will be the year when the real estate market will start growing again. We already see signs of growth in the first month of 2020. Thanks to a new set of progressive real state laws, it is expected to see a wave of foreign buyers. A wave that will push the stagnating real estate industry forward, and that will increase the prices per square foot.
To put it, those that can afford to buy an apartment in Abu Dhabi should do it right away. The market is ripe, and the prices per square foot are just right. Plus, loans have never been cheaper.