The world’s wealthiest individuals are about to invest almost USD 800 million in properties located in Abu Dhabi and Ras Al Khaimah (RAK).
Globally, high-net-worth individuals (HNWIs) are willing to spend USD 796.8 million on residential real estate in the two emirates; those interested in Abu Dhabi are willing to spend USD 408.3 million, while those interested in Ras Al Khaimah are expected to spend USD 388.5 million, according to recent research from Knight Frank.
The survey used to compile the report included 317 HNWIs: 217 from across the globe and 100 from the Gulf Cooperation Council (GCC). With 1,149 homes owned worldwide, the respondents have a USD 5.04 billion combined net worth.
According to Faisal Durrani, Partner and Head of Research, MENA, among HNWIs, 40% intend to purchase a property in Abu Dhabi for investment purposes, 8% are eager to purchase a property to use as their primary residence, and 15% are likely to purchase a second property in the emirate.
The emirate’s “Visit Abu Dhabi” campaign has contributed to the notable level of investor interest in the emirate.
As a consequence of the Department of Culture and Tourism Abu Dhabi’s global campaign, half of expat HNWIs based in the GCC and 67% of HNWIs worldwide with a net worth of over USD 20 million said they would be interested in visiting the city, according to Knight Frank.
Increasing investor interest has also been aided by real estate markets offering properties at appealing prices. According to Shehzad Jamal, Partner, Strategy & Consulting, MEA, homes in the UAE capital sell for about AED 1,000 per square foot, which is roughly a third less than in Dubai.
“Residential values in Abu Dhabi have remained relatively stable for the last four years, which has played a significant role in encouraging domestic buyers to transition from renting to owning. International buyers too have become increasingly active, contributing to the rising deal volumes now being recorded in the emirate,” Jamal noted.
According to Knight Frank’s report, Ras Al Khaimah ranks fourth among the UAE’s property investment destinations for high-net-worth individuals from around the world.
Nearly half (46%) of HNWIs worldwide view RAK more favourably, because of the emirate’s growing tourism infrastructure and economic transformation. This percentage rises to 75% among those whose net worth exceeds USD 20 million. A third (30%) of HNWIs worldwide are planning to spend USD 500,000 on real estate in RAK.
In the RAK real estate market, 37% of people with a net worth of more than USD 15 million would be willing to spend between USD 2 and USD 4.9 million, and 21% would be willing to spend more than USD 5 million.