# Is property ownership allowed in Abu Dhabi?



## Swerveut

As the title asks... is it allowed to own property in Abu Dhabi?

And if it is allowed, what are some of the typical modes of property financing available there?


Regards!


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## saraswat

Yes.. typical financing would be mortgages.. the lending scene is picking up again .. survey the market.. oh and please do read the 'fine print'..

Sent from my Samsung using Expat Forum


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## Swerveut

Cheers. Thanks much.


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## AlexDhabi

The real estate sector is fledgling in Abu Dhabi and foreigners cannot buy on AD island itself. Legally foreigners are not in a strong position when owning property. I'm currently leasing on a rent-to-buy deal with Sorouh thinking/hoping the legal situation and the market would settle down. But so far it is not looking favourable. 
Mortgages are quite expensive, but in the last 2 weeks NBAD and HSBC both launched deals at 3.99%


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## Swerveut

Hello Alex, 

What do you mean foreigners are legally not in a strong position? Can you please elaborate?

So ownership on the island itself is not allowed, but other islands / areas can be bought?


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## AlexDhabi

Buying is allowed. But you do not get the same legal protection that a property owner would expect to get enshrined in law. For example, legal procedures are often based on a "memorandum of understanding" rather than a contract enforceable by the courts. All AD foreign-owned property (even villas) are leasehold, which means you don't own the land so it can be seized and land use changed at any time with or without compensation (such as for road widening or building of a tower block). Also zoning can easily change and you have no control over that. For example, at a future point you could be told (like the UK friend who bought in Sharjah) that now only in this zone can GCC nationals own there. The registration process is fledgling. Also strata law is also not yet enacted in AD so issues can arise if maintenance fees are not paid by owners of flats/apartments. Progress is slow but law changes will come in time.


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## Swerveut

Ok. Thanks much for the answer Alex. I guess that has put me off of property investment in Abu Dhabi. Any other investment ideas anybody?


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