Short answer
UK investors buy Abu Dhabi property in six steps: set a strategy and budget, choose a project in a freehold investment zone, reserve the unit, sign the sales and purchase agreement, pay the deposit and 2% registration fee into the developer's escrow account, then follow the payment plan to handover. It can all be done from the UK.
The six steps
- Set the strategy. Decide whether you want to sell before handover, hold to handover, or rent the property out. The strategy picks the project, not the other way round.
- Choose the project. Compare launches from the main developers, Aldar and Modon, against resale prices in the same community.
- Reserve the unit. Off-plan launches in Abu Dhabi often need around 5% down to secure a unit.
- Sign the SPA. The sales and purchase agreement is usually signed digitally. Read the payment schedule and handover date closely.
- Pay into escrow and register. Payments go to a regulated escrow account, and the sale is registered with a 2% fee through Abu Dhabi's DARI platform.
- Follow the payment plan. Typical plans are interest-free over three to five years, with 40% to 60% due at handover. That handover payment can now often be mortgaged.
What is different for UK buyers
- Currency. Prices are in UAE dirhams (AED), pegged to the US dollar at 3.6725, so your cost in pounds moves with GBP/USD.
- Tax at home. The UAE does not tax your rent or gains, but UK tax residents usually still owe UK tax. See the tax answer.
- Time zones. Abu Dhabi is 4 hours ahead of the UK in winter and 3 hours ahead in summer, so morning calls in London catch the working day there.
“You have to have a look at the data and have a strategy behind it.”
General information, not financial advice. Figures attributed to Mitch come from transactions he tracks.