High-net-worth individuals are fuelling a surge in property investments in Abu Dhabi and Ras Al Khaimah. A recent report surveyed 317 wealthy investors with a collective net worth of $5.4 billion, revealing significant investment intentions.
Record-Breaking Investments in Abu Dhabi
In 2023, Abu Dhabi witnessed record property transactions totalling AED 87.1 billion, a notable increase from AED 61 billion in 2022. Interest from wealthy investors varies with net worth; 14% of those worth $2-5 million and 57% of those worth over $15 million are keen to invest in the capital.
Stable residential values over the past four years and competitive pricing at around AED 1,000 per square foot have spurred domestic and international interest. Popular investment areas include Abu Dhabi Island and Saadiyat Island, the latter known for cultural landmarks like the Louvre Abu Dhabi.
Government initiatives, such as the ‘Visit Abu Dhabi’ campaign, have positively impacted investor sentiment, with 50% of UAE-based and 67% of global investors worth over $20 million expressing increased interest in the market.
Ras Al Khaimah’s Growing Appeal
Ras Al Khaimah (RAK) is also attracting significant attention, partly due to the upcoming Wynn Resort set to open in 2026. RAK’s unique natural landscapes and adventure attractions provide a stark contrast to Dubai’s urban skyline, carving out a niche as an alternative tourist and investment destination.
Findings show that 46% of investors view RAK more favourably due to its growing infrastructure, a sentiment that rises to 75% among those worth over $20 million. The Wynn Resort has influenced 80% of UAE foreign expats and 60% of Saudi foreign expats to consider RAK’s property market.
Average investment budgets in RAK are around $500,000, but higher net worth individuals are willing to invest more, with 37% of those worth over $15 million planning to spend $2-4.9 million.
Conclusion
The report underscores a significant shift in the UAE real estate landscape, with both Abu Dhabi and Ras Al Khaimah emerging as prime destinations for high-net-worth investors. This trend highlights the UAE’s growing appeal as a global property investment hub.
