Abu Dhabi real estate gaining popularity among global HNWIs

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Global real estate consultancy Knight Frank’s 2023 Destination Dubai Abu Dhabi has become the second most popular real estate investment destination after global high net worth individuals (HNWI), report shows dubai.

According to the report’s findings, 21% of respondents cite the UAE capital as their favorite destination for property acquisitions in the UAE. Dubai tops the list (67% of HNWIs prefer the emirate), with Ras Al Khaimah third (5% choose the northern emirates).

Faisal Durrani, Head of Middle East Research at Knight Frank, said: “Abu Dhabi’s global popularity as a destination has been slowly rising, especially with major cultural and entertainment projects such as the Louvre, Qasr Al Wattan, Ferrari World, Sea World and Warner Bros. Theme parks are starting to attract the attention of global tourists. It is paying off, with 45% of global HNWIs saying that development plans in the UAE are positively influencing their perception of the UAE as an investment destination.

“Moving up the wealth spectrum further shows that those with a net worth of more than US$10 million therefore view Abu Dhabi more favorably, with 57 percent keen to invest in the city. According to our survey, among East Asian HNWIs, This figure further increased to 70%.”

Popular destinations in Abu Dhabi

Among them, a whopping 89% expressed interest in investing, especially in the residential sector. Meanwhile, luxury residential properties on Saadiyat Island have begun to attract the attention of the international elite, largely due to highly competitive prices compared with other high-end locations such as Dubai’s Palm Jumeirah.

Durrani continued: “When it comes to committing to real estate investment in Abu Dhabi, 74% are interested in exploring investment options, but as has been the case historically, the challenge is translating this interest into deals.

“One of the most fascinating findings was the impact Dubai had on the perception of Abu Dhabi in the minds of global wealthy individuals. The willingness of Dubai regulars to purchase real estate in Abu Dhabi was 73%, and 50% of them were willing to allocate more than 200% for Abu Dhabi properties. million, with an average allocated budget of $3.7 million.

“Obviously, there is still an opportunity to capitalize on this positive familiarity by developing a more active presence in Dubai, or indeed building greater credibility by entering the Dubai market, similar to what Aldar recently announced with Dubai Holding on the outskirts of Dubai. A joint venture to build 9,000 homes”

Adding to this, Shehzad Jamal, Partner, StratCon, Healthcare, Education and Real Estate, said: “Abu Dhabi is fast becoming a global destination for wealthy individuals looking to invest in real estate. The emirate’s strong economy, stable political environment and world-class The infrastructure in Abu Dhabi is a major factor driving this interest. In addition, cultural attractions in Abu Dhabi, such as the Louvre Abu Dhabi and the upcoming Zayed National Museum, are also attractive to high-net-worth individuals. Abu Dhabi is becoming an even more attractive place to live, work and invest, and we expect this trend to continue in the coming years.”

The Rise of Ras Al Khaimah

Knight Frank’s Destination Dubai study also highlights how wealthy individuals around the world view Ras Al Khaimah’s potential.

While the upcoming Wynn Resort and the adjacent 18,500-square-meter casino on Al Marjan Island are due to open in 2027, 30% of respondents surveyed in the report said the casino would increase their likelihood of investing in RAK properties. Notably, this figure jumped to 60% among East Asian respondents, underscoring the region’s growing interest in investment opportunities in the UAE.

“Ras Al Khaimah has been quietly transforming itself over the past 10 to 15 years to become an alternative tourism hub for Dubai, part of which involves the 1,500-room Wynn hotel and responsible gaming resort currently under construction,” Durrani said. Interestingly, 55% of global HNWIs said the presence of Ras Al Khaimah gaming resorts had not affected their perception of the emirate as an investment location, but 30% said it would make it more attractive. That rises to 50 percent for those with assets above $10 million, while among East Asian HNWIs, 60 percent are more keen on Ras Al Khaimah as a home-buying destination because of Wynn’s development on Al Marjan Island. “