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The National
12 hours ago
- Business
- The National
Aldar sells Abu Dhabi's 'most expensive home' for $109m
Abu Dhabi developer Aldar has sold an eight-bedroom ultra-luxury mansion for Dh400 million ($109 million), which it described as the " most valued home ever sold" in the UAE capital. Located in beachfront project Faya Al Saadiyat, the mansion offers the largest allocation of space, on Saadiyat Island, spanning 6,561 square metres, Aldar said in a statement on Thursday. Its amenities include a private car gallery, a golf simulator and an in-house cinema, as well as wellness and fitness suites. It also offers direct access to a beach. The sale comes amid robust growth in Abu Dhabi's luxury real estate market, driven by rising demand from high-net-worth individuals, long-term residents and international investors, the company said. "Saadiyat Island continues to attract homebuyers and investors from around the world," said Jonathan Emery, chief executive at Aldar Development. "This sustained momentum reflects the success of Abu Dhabi's long-term vision, enabled by progressive government policies, long-term residency initiatives and strategic investment in infrastructure, culture, and entertainment.' Millionaire investors are increasingly looking towards Abu Dhabi property. The UAE capital is home to the highest number of luxury properties on sale in the country, with 352 homes for sale valued above $1 million, a recent report by real estate developer Bloom Holding found. The highest property price growth in the country between 2020 and 2025 was in Abu Dhabi, with growth of 202 per cent, and 8,490 properties on sale increasing in value, the report found. Low taxes and substantial sovereign wealth, along with high living standards, were listed as significant factors in attracting ultra-high-net-worth individuals to Abu Dhabi for long-term property investments. Abu Dhabi's population has also increased from 2.7 million in 2014 to more than 4.1 million in 2024. In the first three months of 2025, total real estate transactions in Abu Dhabi grew by 34.5 per cent annually, climbing to Dh25.3 billion, according to the Abu Dhabi Real Estate Centre (Adrec). The number of property deals during the period also increased more than 19 per cent to 6,896. Adrec is focused on "upholding strong governance and regulatory oversight" of the sector, said Ghazi Al Otaibi, executive director of the real estate transactions sector at Adrec. "Transactions of this scale reflect the strength of a maturing market and the effectiveness of a regulatory framework we've put in place designed to support and attract responsible, high-value investment.' The latest sale follows the Dh137 million sale of Aldar's Nobu Residences Abu Dhabi penthouse on Saadiyat Island in March last year. Aldar said it recorded Dh5 billion in sales on Saadiyat Island in the first half of this year. Foreign residents accounted for 86 per cent of buyers, including 46 per cent residents and 40 per cent non-residents. The buyers were mainly nationals of Russia, France, the UK, China and the US. Faya Al Saadiyat is an exclusive luxury gated community with 21 homes, including two eight-bedroom mansions and 19 six to seven-bedroom villas, scheduled for completion in 2028. It is being designed by 1508 London Interior Design Studio and Nordic Office Architects.
The National
3 days ago
- Business
- The National
Why Abu Dhabi is becoming more attractive for millionaire investors
Millionaire investors are looking towards Abu Dhabi for long-term investments, according to government data that shows the capital is home to the highest number of luxury property on sale in the UAE. Analysis by real estate developers Bloom Holding found the highest property price growth between 2020 and 2025 was in Abu Dhabi, with the capital having 352 homes for sale valued above $1 million, compared with 343 in Dubai. Abu Dhabi recorded year-on-year growth of 202 per cent in the last five years, with 8,490 properties on sale increasing in value. The capital has 352 homes for sale valued above $1 million, compared with 343 in Dubai. Low taxes and substantial sovereign wealth, along with high living standards, were cited as significant factors in attracting ultra-high-net-worth individuals to choose Abu Dhabi for long-term property investments. Out of the top ten areas in the Emirates reporting the most significant five-year price growth, seven are in Abu Dhabi. While Naseem Villas in Sharjah recorded the highest national property price growth with a staggering increase of 243.27 per cent, Abu Dhabi has two areas in the top three. The first is Remah in Al Ain, which is ranked second with a 241.62 per cent increase, while Zone 12 in Mohamed Bin Zayed City follows in third with 237.90 per cent. A bright future Asad Khan, chief executive of Invest Dubai Real Estate, said Abu Dhabi is becoming a more attractive option for investors. 'With all the government bodies based there, as well as sectors like technology, healthcare, finance and renewable energy all setting up, the bigger players are coming into Abu Dhabi,' he said. 'There's a lot of investment coming into the area, not only from the government but also from the private sector. 'I feel that the future is very, very strong in terms that the entry price is a lot lower in Abu Dhabi – even within the luxury market.' According to the Bloom Holding report that analyses data from online property portals and the Dubai Land Department, Umm Al Quwain has the most expensive average property price in the country at $619 per square metre, followed closely by Dubai at $450 per square metre. 'Abu Dhabi is getting more people coming into that space only because, the entry price is a lot lower,' said Mr Khan. 'You're getting a lot more for your money, both on the commercial side and also on the residential side.' The most expensive place to live, however, is in Abu Dhabi – with Zone 8 of Mohamed Bin Zayed City taking top spot. The capital also has two areas in the top three for property growth. The first is Remah in Al Ain, which is ranked second with a 241.62 per cent increase, followed by Zone 12 in Mohamed Bin Zayed City, which follows in third with a rise of 237.90 per cent. Properties in Al Muroor, Abu Dhabi, have the most million-dollar listings in the UAE, followed by homes in Sheikh Khalifa Bin Zayed Street. Mushrif Villas and Seashore Villas in Rabdan are the other areas in the emirate with the most luxury properties up for sale. One UAE resident looking to invest in Abu Dhabi is Kevin Goodall, who lives in Dubai with his wife and four sons. Mr Goodall sold his IT business last February and moved to Dubai to rent a family villa in Arabian Ranches in August. He has already purchased off-plan in a luxury development in Dubai, but is now looking towards Abu Dhabi for opportunities. 'I will probably be looking to invest around Yas Island or anywhere near where Disneyland is being proposed,' he said. 'Investing in Abu Dhabi is more of a diversification tactic. Obviously it is very different to Dubai, and they've both got very different appeal. 'There are a lot of attractions there like the F1, theme parks and Disney which is definitely appealing. Investing there is more a strategic tactic.' Population growth In a decade, Abu Dhabi's population has grown 51 per cent, rising from 2.7 million in 2014 to over 4.1 million in 2024. In the first three months of 2025, total real estate transactions in Abu Dhabi grew by 34.5 per cent compared with the same period in 2024, climbing from Dh18.82 billion to Dh25.3 billion. Figures from the Abu Dhabi Real Estate Centre showed the number of property deals made in that quarter increased from 5,773 to 6,896. Mortgage transactions also recorded strong growth in Abu Dhabi, reaching Dh9.8 billion through 3,077 transactions – a 49 per cent year-on-year increase. 'Abu Dhabi Vision 2030 is a comprehensive long-term plan that aims to transform the emirate into a diversified, sustainable, and globally integrated economy,' said Arun Bose, director of the International Real Estate & Investment Show that takes place in Abu Dhabi in September. 'At the heart of this vision is real estate development, which plays a pivotal role in shaping the future of urban living, economic growth, and social infrastructure. 'The strategy focuses on creating vibrant, liveable communities supported by smart infrastructure, green spaces, and world-class amenities. 'With investments pouring into mixed-use developments, waterfront districts, cultural hubs, and high-tech business zones, Abu Dhabi is positioning itself as a real estate powerhouse in the region.'
The National
7 days ago
- Business
- The National
Rent or buy? UAE rental costs cheaper than mortgage repayments in luxury neighbourhoods
Monthly rental costs in some parts of the UAE are cheaper than mortgage repayments, a new report has found. The trend has put more emphasis on the rent-versus-buy debate, particularly for residents looking to settle in the long term, and comes as the national population surges. The analysis, released by property developer Bloom Holding, was based on 2025 Property Finder data for two-bedroom homes. The study compared monthly rents and mortgage payments across 77 neighbourhoods in Dubai, Abu Dhabi, Sharjah, Ajman and Ras Al Khaimah, finding that in more than half of those (44), renting works out cheaper in the short term. The gap is most clear in Al Marjan Island, Ras Al Khaimah, where the average mortgage payment of Dh18,782 ($5,113) is nearly three times higher than average rent of Dh6,667 ($1,815). This, according to independent mortgage expert Jon Bowe, is because land department fees and developer payment plans in RAK are different to elsewhere in the Emirates. In contrast, Al Reef in Abu Dhabi offers better value for buyers, as mortgage payments are nearly 38 per cent lower than rent (Dh4,659 over Dh7,500, respectively). In Dubai's Culture Village and Jumeirah Village Triangle (JVT), mortgage payments are more than 30 per cent lower than rent, suggesting high-potential entry points for homebuyers, the report says. However, experts are quick to emphasise this is only the case if you are planning to live in a property for two years or less, otherwise buying provides more financial stability in the long term. Can renting be more affordable? Industry experts told The National a number of factors contributed to these findings, such as high property prices, steep down payments and a population that values flexibility. 'Even though rent prices have been increasing, property prices for purchase can be prohibitive for many residents, especially when down payments and continuing maintenance costs are taken into account," Ronan Arthur, director and head of residential valuation at property consultancy firm Cavendish Maxwell, said. Mr Bowe said the primary obstacle for potential homeowners is the ability to afford the initial down payment, which is 20 per cent for properties under Dh5 million and 30 per cent if above, while self-employed buyers will need to pay even more. "This is also the reason we've seen an influx in investors throughout Dubai due to the fact they're receiving higher income from rent than their mortgage payment is costing them, resulting in a higher return on investment." Where do renters get better value? The report highlights a clear divide between luxury and suburban communities. Luxury locations, such as Palm Jumeirah, Downtown Dubai, Emirates Hills and Al Marjan Island, tend to favour renters. High entry prices and service fees, combined with strong rental demand from expats and corporate tenants, make renting more feasible for most. 'Many investors and end users in these areas are willing to accept lower returns in exchange for capital appreciation, prestige and convenience,' Ayman Youssef, UAE managing director at global property company Coldwell Banker, said. However, while mortgage costs can exceed rents in these areas, that doesn't mean buying isn't worthwhile. Daniel Hadi, chief executive at Engel & Volkers Middle East, said: "Many buyers in these communities are focused on long-term capital appreciation or lifestyle benefits, not just monthly costs." Meanwhile, suburban hubs such as Dubai's Town Square, Damac Hills, Dubai South, JVC, JVT and Al Reef in Abu Dhabi offer better value for buyers, as lower property prices and more manageable mortgages attract families and long-term residents. Farooq Syed, chief executive of Dubai agency Springfield Properties, said such communities offer mortgage payments that are often 20 per cent to 35 per cent lower than equivalent rents. 'This affordability gap is driven by a combination of rising rental prices and stable mortgage rates, which have remained between 3.99 per cent to 4.5 per cent,' he added. Historic boom The UAE's property market is experiencing a historic boom. There were 226,000 transactions in Dubai last year, valued at a record Dh761 billion, a 36 per cent annual jump in volume. In June, a Deutsche Bank report showed Dubai had recorded the highest growth globally for city centre property prices per square metre in the past five years. This is largely driven by a soaring population. By the end of March, Dubai's population had risen to 3.92 million, with 89,695 new residents added in the first three months of the year, an average daily rise of about 1,000. Last month, Abu Dhabi's population surpassed four million, fuelled by a 9 per cent increase to its workforce in 2024. Sharjah's population grew from 1.4 million in 2015 to 1.8 million in 2022, the emirate's most recent census in 2023 revealed. This growth is fuelled by a young, international workforce and government initiatives, such as the golden visa and first-time homebuyer programmes, which aim to make the UAE a long-term home for expats. As supply aims to catch up with demand, however, with a flood of new properties set to enter the market, a report by New York-based ratings agency Fitch Ratings predicted the city's real estate market would enter a 'moderate correction' in the second half of 2025. It forecast residential prices could fall by as much as 15 per cent as a record number of projects are launched. While many homeowners remain unconcerned, the report found some prospective buyers were pausing to reassess. "We are witnessing a gradual shift towards home ownership and that's not expected to change in the long term," said Mr Hadi. Why mortgages still make sense While renting may be cheaper month-to-month in many areas, experts warned that home ownership remains a safer bet for those planning to remain in the UAE for the long term. Mr Arthur said, regardless of market conditions, monthly payments build equity through mortgage repayment rather than rent, which some people consider 'dead money'. Mr Youssef added that buying "includes the potential for capital appreciation, projected supply and demand in the area, infrastructure development, quality of life, exclusivity and income potential". However, he warned that buyers also need to factor in costs such as service charges, maintenance and future resale prospects. Another important consideration is stability, said Mr Hadi. "While mortgage payments in fixed-rate structures remain consistent over time, rental rates can increase year after year. Rising rents can outpace inflation, eroding financial stability. Home ownership, by contrast, offers predictability and greater control over housing costs." Property values in Dubai, for example, have historically trended upwards over the long term, so owning a home means you stand to benefit from capital appreciation, added Mr Hadi. "If a property were to grow even modestly in value each year, that gain would be fully realised by the homeowner, adding further to their long-term wealth." Ultimately, it depends on your timetable and goals, said Mr Syed. "If you're planning to live in Dubai for less than two years, renting is usually the more flexible and practical choice." For anyone planning to stay three years or more, then buying typically becomes the more "financially sound" option, he added. Navigating the decision For renters feeling priced out, Mr Syed advised starting with a savings plan focused on building a down payment. 'Ownership may feel out of reach initially, but incremental steps create momentum. Rent-to-own schemes and developer-led payment plans are expanding, and many emerging communities still offer accessible entry points. Even if the first purchase isn't the dream home, it can be a strategic foothold, laying the groundwork for financial stability and long-term equity.' Conversations with a mortgage adviser and an experienced real estate broker can help you understand how much you need to save, Mr Hadi added. Mr Syed anticipates rent growth to continue at a 'more moderate pace', and for capital values in non-luxury segments to stabilise. "As visa reforms and demographic shifts support long-term residency, the ownership proposition is likely to gain traction among first-time buyers and end users seeking cost control and asset growth."
Khaleej Times
15-07-2025
- Business
- Khaleej Times
UAE property market: Top areas where renting is cheaper than owning home
The UAE's property market has matured significantly over the years, evolving into a more stable and reliable sector that delivers consistent returns. Driven by an influx of new professionals and wealthy individuals in the post-pandemic period, the market continues its upward trajectory. Where renting offers better value According to a recent study by Bloom Holding, eight locations across the UAE currently provide better financial returns for tenants than for homeowners. Al Marjan Island, an artificial archipelago in Ras Al Khaimah, tops the list. The median monthly mortgage payment in the area is Dh18,782, almost three times the average monthly rent of Dh6,667. Similar trends are seen in Al Barsha (Dubai) and Al Amerah (Ajman), where the rent-to-mortgage gap exceeds 60 per cent. In Saadiyat Island, a luxury neighbourhood in Abu Dhabi, renters pay 60.01 per cent less than homeowners. The average rent is Dh14,167, compared to a mortgage of Dh22,669. Other areas with notable rent-to-mortgage gaps include Muwaileh (Sharjah), Expo City (Dubai), Al Hamra Village (Ras Al Khaimah), and Al Rashidiya (Ajman), with rental savings ranging from 46.44 per cent to 59.23 per cent. "These areas make renting a financially savvy choice," said a spokesperson from Bloom Holding. Where buying a home makes more sense Conversely, there are areas in the UAE where buying a home proves more cost-effective than renting. Based on Bloom Holding's research, four communities in Abu Dhabi offer the most compelling advantages for buyers. Al Reef, a family-oriented community near Zayed International Airport and Al Raha Beach, shows the most significant cost gap. The average monthly rent is Dh7,500 — 37.88 per cent higher than the median mortgage payment of Dh4,659. In Khalifa City, located near Abu Dhabi International Airport, the median rent stands at Dh11,250 — 19.61 per cent higher than the average mortgage of Dh9,044. While the gap is narrower, the cost benefit of owning remains notable. In Dubai, two communities also stand out. In Culture Village (Al Jaddaf), the median rent is Dh21,250, compared to a mortgage payment of Dh14,531 — a 31.62 per cent difference. Jumeirah Village Triangle, located between Sheikh Mohammed bin Zayed Road and Al Khail Road, shows a similar trend, with average rent at Dh13,333 versus a mortgage of Dh9,190 – a 31.07 per cent gap. In Tilal City (Sharjah), renting costs Dh9,167 per month, while a mortgage is Dh8,061 — a 12.07 per cent difference. Lastly, Al Sawan in Ajman presents a 10.61 per cent gap, with average rent at Dh3,750 and a mortgage at Dh3,352.
What's On
10-07-2025
- Business
- What's On
Rent vs. buy in the UAE: The best-value areas in 2025
If you've ever wondered whether it's better to rent or buy in the United Arab Emirates, here's your answer: it depends on where you're looking. A new report by Bloom Holding crunched the numbers across 77 neighbourhoods in five emirates, namely Dubai, Abu Dhabi, Sharjah, Ajman, and Ras Al Khaimah. And the results reveal clear trends. In 44 of those areas, renting still wins on cost. In others, buying now could save you thousands – making it a smart time to revisit the question of rent vs buy in the UAE. When renting makes more sense From Saadiyat Island in Abu Dhabi to Al Marjan Island in Ras Al Khaimah, there are places where the cost of owning shoots up by 50 to 180% compared to renting. These high-demand areas come with big mortgages and service fees, meaning tenants are often getting the better end of the deal – especially for short stays or contract-based moves. Where buying pays off In spots like Al Reef (Abu Dhabi) and Culture Village (Dubai), monthly mortgage costs are well below rental prices – by up to 38%. If you're planning to stay put for a while or looking to build equity, these areas offer strong value for money. What the monthly numbers say It's not just a small gap – some of these neighbourhoods show serious monthly savings for owners. Al Reef, Abu Dhabi: Rent averages around Dhs 7,500, but a mortgage sits at Dhs 4,659 – that's nearly 38% less. Culture Village, Dubai: Owning drops monthly outlay to Dhs 14,531, compared to rent at Dhs 21,250. Jumeirah Village Triangle, Dubai: Rent is roughly Dhs 9,190, but buying cuts it to Dhs 3,333. Other strong contenders include Khalifa City and Al Reem Island in Abu Dhabi, plus Tilal City in Sharjah – ideal for those looking to buy in maturing, well-connected communities. Smart strategy, not just savings The takeaway? This isn't just about cutting costs. For businesses managing regional teams, expat relocations, or long-term base setups, aligning your rent-or-buy decision with your wider goals makes all the difference. Think flexibility vs. permanence, upfront spend vs. long-term payoff. So whether you're eyeing a two-year secondment or putting down roots, this data gives you something valuable in real estate: clarity. > Sign up for FREE to get exclusive updates that you are interested in
