Is It Better To Buy Real Estate In Dubai Or Abu Dhabi?

Both Dubai and Abu Dhabi offer something for all investors. Yet, all investors are not the same, and each city will appeal to one type of investor but not another.

There are a lot of similarities between these two cities, and a close comparison of the two should help people to decide which city fits their investment or residential needs.

Keep reading to find out more about these two cities and see which one is best for your investment dollars.

Is Real Estate A Good Investment In Abu Dhabi?

Without question, this city is a very good investment opportunity. Both it and Dubai have areas that are available to ex-pats as well as areas ex-pats are excluded from buying property.

If you look at the return on investment (ROI) for both cities, you will find that Abu Dhabi is not as profitable as Dubai, but the ROI is nothing to sneeze at either. The current forecast for Abu Dhabi ROI is well above 5%, and in Hydra Village, it almost reaches 7%.

That is a very good investment return. However, Mohammed Bin Rashid City, for both four and 5-bedroom homes, equals Abu Dhabi’s Hydra Village in ROI expectations.

The big difference between these two cities, ROI-wise, is that the neighbourhoods examined for Dubai do not go below 6.5%. While a good real estate investment portfolio in Abu Dhabi is good, Dubai just happens to be slightly better.

The biggest problem in investing in Abu Dhabi is that it is still very oil dependent. The real estate values decrease somewhat as oil prices decrease. That situation should be factored in as you contemplate investing in this city.

Is The Property Cheaper In Abu Dhabi Or Dubai?

Dubai is more of an international city and has more ex-pats living in its homes than Abu Dhabi. This factor plays an important role in real estate values, not to mention all the amenities found in Dubai.

For renting, you will find that similar properties will rent cheaper in Abu Dhabi over Dubai. A studio in Abu Dhabi can rent for as low as 31,000 AED, while the same property in Dubai will rent for 39,000 AED.

A one-bedroom apartment rents for 64,000 AED in Dubai, while its counterpart in Abu Dhabi rents for only 52,000 AED. This rental cost difference remains the same as you look at those apartments and homes with 3 to 5 bedrooms in them.

As for buying property, it is cheaper to buy in Abu Dhabi than in Dubai. In a look at 4 top neighbourhoods in this city, the most expensive house, with five bedrooms, reaches just over 4,000,000 AED.

But in the other neighbourhoods, 3, 4, & 5-bedroom homes are in the 2,000,000+ AED range, with one four-bedroom home reaching 3.1 million AED and one 3-bedroom home selling for under 1,000,000 AED.

In comparison to Dubai, the same type of homes start at roughly 2.5 million AED, but the majority are over 5,000,000 AED and reach 16.5 million AED in the Mohammed Bin Rashid City neighbourhood.

Is Dubai Better Or Abu Dhabi

This is a subjective question. It all depends on what you are looking for in a city. Some people find small towns better than city life, while others find the reverse to be true.

As for property purchase or rent expenses, Abu Dhabi would be the better city. But for the ROI factor, Dubai would be the better city. But which one tops the other in terms of being better would depend on your investment purpose.

Dubai has a very high international population, while Abu Dhabi has a very high Middle Eastern population. Both cities offer nice amenities, including malls and entertainment venues.

So it boils down to what you want out of a city. It is highly recommended that you buy a home in the city that you will be working in, and that means your choice is made for you.

Ex-pats seem to prefer the loud, bragging Dubai over the quiet and unassuming Abu Dhabi, but the latter may be the perfect city for you.

Is Life Better In Dubai Or Abu Dhabi?

This is hard to answer as well, as it depends on the preferences of the real estate investor. If you want a more subdued and quiet neighbourhood, then Abu Dhabi would be better to live in.

But if you want nice nightlife or recreational activities, then Dubai may be the better choice. If lower monthly payments are what you are looking for, then life would be better in Abu Dhabi.

Plus, the cost of living should be lower in Abu Dubai over Dubai. It has been said that Dubai has some strict rules for its beach use, while Abu Dhabi is more family orientated and less strict.

You will find that both cities have the same type of shopping opportunities with their share of malls and markets. The public transportation system seems to be better in Dubai over Abu Dhabi, but that would be logical since Dubai is looking to attract more international ex-pats.

Life is better in either city if they meet your living and lifestyle preferences. Some ex-pats will like Abu Dhabi over Dubai and vice versa. It just depends on what you are looking for when you buy a residence or want to invest in real estate.

Some Additional Words

When you are looking to invest in the UAE region, give our real estate firm a call. We have been in the Dubai, Abu Dhabi, and UAE real estate business for over ten years.

Our estate agents are experts in both cities and can provide you with all the best and most objective information about both cities so you can make up your mind about which is better for you.

Give us a call today so we can help you find the perfect city for you to buy real estate and enjoy life in either city.

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