'Better To Own Than Rent': Residents Turn To Property Investment In Abu Dhabi

Rising rents are pushing more residents in Abu Dhabi to consider buying property rather than continuing to lease, as the capital's real estate market records strong activity this month. One resident who purchased an apartment at the launch of a new residential project on Reem Island said the decision came after months of watching rental costs climb

“We don't know how long we can withstand the rental increases,” said a South African expatriate who bought his first property as an investment.“It's an owner's market, so we decided it's better to own than remain tenants.” The buyer said he and his wife had been considering entering the property market for about six months before finally deciding to purchase.

When he arrived at the launch event, he was struck by the turnout.“There were around 100 people waiting outside when I got there,” he said.“It was packed. Luckily, my agent managed to guide me through the crowd.”

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The purchase was made at the launch of Tara Park, a new residential development by Modon on Reem Island, offering one- to three-bedroom apartments designed for investors and end users.

Busy month for property deals

Property brokers say March has been one of the most active months so far this year, with deals rising significantly compared with February and January.“What I can see currently in the market, in terms of transactions, it is one of the best months from the beginning of the year,” said Hussain Al Tamimi, Founder of Sustainable Homes.“We are talking about 40 to 50 per cent more than February.”

He said much of the demand is coming from residents already living in the UAE.“Almost 65 per cent of buyers were expatriates living in the UAE, and around 18 to 19 per cent were Emiratis,” he said, adding that roughly 30 to 35 per cent were making their first property purchase.

Similarly, Property consultant Ahmad Samy, said there has been an increase in demand by residents.“More residents are becoming owners rather than tenants, especially Indian expats.”

“From my experience in the Abu Dhabi real estate market, I estimate that around 40–50 per cent of recent buyers were driven by rising rental prices. Many tenants realized that annual rents are approaching mortgage levels, making ownership a more logical option,” he explained.

“Strong rental yields, long-term residency plans, and flexible developer payment plan are key factors encouraging buyers to enter the market,” he added.

Recent launches across the capital have also drawn large crowds, highlighting strong appetite for off-plan properties. Earlier this month, developer Ohana Development launched Manchester City Yas Residences, a branded residential project developed in partnership with City Football Group and English football club Manchester City F.C.

The project's sales launch at Etihad Park attracted hundreds of buyers, with some agents reporting queues before sunrise and token numbers exceeding 200 by early morning. Phase 1 of the project sold out within 72 hours, generating more than Dh6 billion in sales, according to the developer.

Agents say such launches reflect strong investor interest in Abu Dhabi's property market. Mohammad Al Jbour, Chief Executive of Unique Homes worldwide properties, said recently launched projects have seen strong demand from both investors and residents.“There were end users and there were investors, which reflects the diversity of the market,” he said, noting that buyers included UAE nationals, residents and international investors who have shown strong interest and have actively invested in the market.

Industry professionals say the location of new projects is also a major factor driving demand. Reem Island continues to attract investors due to its proximity to the capital's financial centre, Abu Dhabi Global Market.

Samy said the area remains one of the most attractive rental markets in the capital.“Reem is one of the highest places where you can apply for rent in Abu Dhabi,” he said.“It's only five to ten minutes from downtown, which makes it very attractive.”

Despite geopolitical uncertainty in the region, agents say confidence in Abu Dhabi's property sector remains strong. Al Tamimi expects prices to remain stable in the short term before increasing later in the year.“I would expect stability for the next two or three months, then an increase in prices.”

Firas Abulaila, chief executive of Property Shop Investment, said the turnout at recent launches reflects strong momentum in Abu Dhabi's property market.“The people who are here today are a big sign that we have high momentum in the Abu Dhabi real estate market,” he said, adding that demand is coming from a mix of investors and end users entering the market with confidence, as developers continue to introduce strong new developments across the emirate. Many buyers are drawn by Abu Dhabi's evolving vision and the strength of its real estate sector, he added.

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