Townhouses for Sale in Abu Dhabi

The wealthiest of the seven emirates of the United Arab Emirates (UAE), Abu Dhabi had an economy that was mostly reliant on fishing and pearl diving. The discovery and exploration of natural reserves gave a boom to the economy of Abu Dhabi and the city was able to fund a period of rapid development. The once desert emirate has turned into one of the leading cosmopolitan cities of the world. The financial stability and affordable cost of living in the emirate have attracted professionals and families from different countries to live and invest in Abu Dhabi.

The new Abu Dhabi Freehold Property Law of 2019 is cherished by foreign investors as well as expats looking for long-term accommodation in the emirate. As per the law enacted by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, non-UAE nationals can buy freehold properties in the investment zones of Abu Dhabi such as Al Raha Beach, Saadiyat Island, Yas Island and Al Reem Island. Interested buyers can find a range of residential properties in these areas including apartments, villas and townhouses. For those planning to buy a townhouse in Abu Dhabi can choose from off-plan and ready-to-move units available in different configurations.

Freehold vs Leasehold Property in Abu Dhabi

There are two categories of property ownership in Abu Dhabi; freehold and leasehold. Leasehold means the buyer can take the title of a property for a fixed period but does not own the land on which the property is built. Freehold ownership in Abu Dhabi means that the investor has direct and complete ownership of the land and the property constructed on it.

The amendment to the Abu Dhabi Freehold Property Law of 2019 allows expatriates and foreigners to purchase freehold property in designated investment zones of the emirate. Before this amendment, the property ownership in the UAE’s capital was limited to GCC and UAE Nationals only. Foreign investors and expats purchased property in Abu Dhabi through three main systems; long-term leases (for 25 years or more), Musataha (a 50-year renewable lease) and usufruct (generally a 99-year lease). The changes in the law were enacted after examining the needs of the real estate sector in Abu Dhabi. This amendment will not only attract foreign investment but also boost the economy in the emirate.

The investment areas for expats and foreign investors in Abu Dhabi are Al Maryah Island, Yas Island, Al Raha Beach and Al Reem Island. The areas suitable for buying townhouses in Abu Dhabi include Al Reef, Lulu Island and Masdar City. Other freehold areas of the emirate are Saadiyat Island and Seih Al Sedirah.

Leasehold and freehold areas are determined by the government and are subject to change.  

Types of Townhouses in Abu Dhabi

Townhouses for sale in Abu Dhabi come in different sizes and options. There are 2-bed to 6-bed townhouses in the emirate with the option of ready-to-move and off-plan properties. The ready-to-move townhouses in Abu Dhabi for sale are available in furnished and unfurnished options while off-plan units are those that have been sold before construction. Before buying a townhouse for sale in Abu Dhabi one should know that the price range of the off-plan property is generally more affordable than the ready-to-move unit.

Townhouses for sale in Abu Dhabi are equipped with modern amenities and an ideal residential unit for families looking for privacy. Most two-storey townhomes consist of a laundry, parking area, landscape garden, maid’s room and storeroom. As these houses are mostly located in a gated-community, tenants can also enjoy the shared facilities such as access to a fitness centre and swimming pool.

Popular Areas to Buy Townhouses in Abu Dhabi

Yas Island is one of the popular areas to buy a townhouse in Abu Dhabi. Other areas where buyers can purchase townhomes are Al Raha Beach and Al Reem Island. Al Ghadeer is also a sought-after destination for buying a townhouse. Those looking for an off-plan property can find various options in Saadiyat Island.

Sales Trends for Townhouses in Abu Dhabi

The sales price for 2-bedroom townhouses in Abu Dhabi starts from AED 1.7M and goes up to AED 3.9M in areas like Al Reem Island and Saadiyat Island. A 3-bedroom townhouse can be purchased for AED 1M to AED 1.5M. The starting price of a 4-bedroom townhouse is AED 2M in Al Raha Beach while a 5-bedroom townhouse can cost around AED 3.9M at the minimum. There are a few options available for 6-bedroom townhouses in Abu Dhabi. These houses are available on Al Raha Beach with a minimum sales price of AED 3.1M.

ROI for Townhouses for Sale in Abu Dhabi

Investing in Al Ghadeer can reap a 6.9% rental yield while buying a townhouse in Al Reef can generate a 6.4% return on investment. Investors can expect a high rate of investment for townhouses in Al Raha Beach which is 6.1%.

How to Buy a Townhouse in Abu Dhabi?

To buy a townhouse in Abu Dhabi, one can search for the desired property using Bayut. Here you will find a plethora of residential properties from where you can choose the unit according to your budget and space requirements. Once you have selected the property, the next step is to agree on a Memorandum of Understanding (MOU) with the seller. The buyer will pay 2% of the property’s value to the real estate agency/agent as a service fee and 2% to the Abu Dhabi Municipality while signing the MOU. After signing the agreement and paying the purchase value, the developer will issue the ownership certificate to the buyer. The developer will also demand an administrative fee of AED 5k from the buyer before issuing the certificate. If you are an expat and interested in buying a townhouse in Abu Dhabi for sale then you can purchase in designated investment zones of the emirate only while GCC and UAE Nationals have no such restrictions.

Costs Associated with Buying a Townhouse in Abu Dhabi

If you are buying a townhouse in Abu Dhabi, there are a few costs associated with the purchase price of the property. Firstly, one has to pay the registration fee to the Abu Dhabi Municipality which is 2% of the purchase price. The buyer also pays 2% of the property price plus 5% VAT to the real estate agent/agency as a commission fee. Those buying the property directly from the developer do not need to pay the commission fee. If you are purchasing the property with a mortgage then 0.25% of the purchase value will be paid for its registration fee whereas other documentation can cost different charges. The transferring of the title deed of the townhouse for sale in Abu Dhabi through the legal and financial process can cost AED 1,000.

The annual service charges are another cost related to a townhouse for sale in Abu Dhabi. These charges are usually paid by the owners to the developers for maintenance, security, communal electricity and building insurance. Usually, the annual service charges are calculated per square feet (sq. ft.) while the price range of the charges depends on the location and services provided by the buildings.

The buyer contacts the concerned authorities to set up the water, electricity and district cooling connection when it comes to a townhouse for sale in Abu Dhabi. If you are purchasing a fully developed property then the owner does not need to set up the connections but instead needs to transfer the ownership of the connections. The owner will receive the monthly bill after transferring/setting up the connection as per the energy consumption.