Print

Abu Dhabi in spotlight after Manchester City buy

Catherine Deshayes

The profile of the UAE as a place for overseas property investors to buy is sure to rise following recent publicity about Abu Dhabi United Investment vehicle buying premiership football club Manchester City.

A group of Abu Dhabi investors has agreed to buy Manchester City from Thaksin Shinawatra, the former Thai prime minister, in a deal that highlights the global interest in owning football clubs in the English Premier League.

The club's equity and debt has been valued at £200 million, and the deal is one of the most high profile to emerge from the UAE's capital.

This move will remind people that there is more to the United Arab Emirates than just Dubai. Whilst Abu Dhabi is one of the wealthiest cities in the world, it has cheaper property prices than other major hubs, such as London.

Abu Dhabi United has said that it has massive ambitions for the club and has already funded the British transfer record acquisition of Brazilian player Robinho for £32.5 million. 

Paul Bartlett, Sales Director at EM Concepts, told TheMoveChannel.com, "Dubai and Abu Dhabi are both very active markets for property investors, although the most publisised and therefore to some extent the most popular is Dubai.

"Not many people realise that Abu Dhabi is easily the wealthiest Emirate, owning over 90 per cent of the oil in the UAE.

"It also has the highest per capita income in the world and in fact, it was Abu Dhabi that bank rolled most of the construction taking place in Dubai.

"Why is it then that Dubai is still seen as the place to invest? Much of the reason is the plentiful stock available in Dubai which is offered out internationally in the press and at exhibitions around the world. As its oil is running lower it needs to find other revenue streams and establish itself as a top tourist destination.

"Abu Dhabi on the other hand does not need to advertise. They haven't ever really needed to focus on encouraging new businesses and tourists to come to their country.

"Developers there sell anything they release instantly and investors, particularly those not in Abu Dhabi, really have to struggle to try and find an apartment to buy. 

"It is this sort of market, with such strong local demand, that people in the know is and have been targeting for some time. Due to the lack of availability on the new projects, the resale market is strong and prices are rising quickly.

"Speculators who have an inside edge have made quick profits by buying multiple units off plan and selling these on in just a few months for handsome profits. The real money however is to be made by looking at the market as a medium to long term investment.

"Abu Dhabi has an ambitious masterplan taking it up to 2030 and is expecting to see the population triple from just under one million in 2007 to three million in 2030. 

"Business is booming and tourism increasing. Investors should look to try and pay under 3000AED per square foot for apartments on either the resale market or on new projects if they can find availability, although there is talk of the average price rising above this after this years huge Cityscape exhibition," added Mr Bartlett.

To browse property in Abu Dhabi for sale, visit www.themovechannel.com/property/Uae/Abu_Dhabi/