Top 5 Types of Properties in Abu Dhabi - An Investor's Guide

Choosing to invest in your own residential property is one big decision. With the different types of properties you can invest in, you might find yourself confused and/or unsure on how to proceed. To assist you throughout this process, we have compiled a list of the top five types of properties in Abu Dhabi.

Types of Properties in Abu Dhabi

1. Apartments

Many people prefer the flexibility and convenience of apartment living, particularly if they are new to the area or don't want to commit to financial obligations of home ownership just yet.

An apartment is a separate dwelling within a house or a rented residential unit that is a part of one (or more) residential buildings. Usually, one owner or management business is responsible for all of the units' maintenance and upkeep.

The rental lease terms might be as short as a few months or as long as a year, with a year being the most common. Most of the time, residents of apartments have access to communal spaces such as the gym, pool, and parking. 

2. Townhouses

A townhouse is a multi-story residence that has neighbors on either one or both sides of a shared wall. Townhouses are likely to have a consistent appearance and be managed by a homeowners' association. Only the interior of the unit is the homeowner's responsibility; the homeowners’ association is in charge of the front yard, back yard, and shared amenities’ maintenance. Additionally, the townhouse community pays lesser fees because the homeowners' association is mostly responsible for maintenance. Typically, the association dues cover the cost of water, sewage, and garbage pickup.

The guidelines for how to maintain particular places and facilities are set by the homeowners’ association. Townhouses, for instance, may have shared spaces like tennis courts, swimming pools, and golf courses, among others. The association is in charge of ensuring that residents appreciate every feature of the area.

3. Villas

A villa is a large solitary structure with expansive grounds surrounding it. It is very lavish and could include amenities like pools and gardens. Villas are primarily occupied by a single family, as opposed to townhouses and condos, which are designed to accommodate many families. Villas are found in less populous locations while condos and townhouses are found in more congested areas. A villa needs the same upkeep and insurance as a house or a townhouse does. Villas are distinctive due to their opulent facilities and seclusion. Instead of remaining there, a villa's owner has the option to rent it out as a vacation home.

4. Penthouses

A penthouse is a large, luxurious apartment that is typically found on the top floor of a residential complex, condominium, or hotel. The term is now used by realtors to describe any unit that has a floor plan that is much more opulent and larger than the other flats, making it the costliest unit. Modern penthouses have a few traits that make them distinctive:

1. High ceilings: A penthouse unit's high ceilings and huge ceiling windows, which let light stream in and provide the impression of more space, are defining characteristics.
2. Outdoor access: Opulent penthouses are set back from the exterior walls and the rest of the structure. This creates access from the penthouse to an outdoor terrace where residents could host visitors, meditate, or eat.
3. Premium finishes: Since penthouses are luxurious apartments, they frequently come with high-end hardware, appliances, and other finishing touches that improve the room.
4. Exquisite views: A penthouse's access to the best views is its most distinguishing quality. Because of this, a penthouse may be situated on a lower floor where it might have access to greater, unobstructed views, even if the premium residences are often on the top floor.

5. Hotel Apartments

A hotel apartment is a place to stay for a short while. The cost of temporary housing is estimated on a per-night, per-week, or per-month basis. Under certain circumstances, long-term rentals are also feasible.

As if it was their own house, the tenant enjoys the apartment on their own. However, they are not allowed to settle there. Several buildings or individual flats scattered throughout a city may have hotel residences, as may a single apartment rented from a private landlord. Either an individual person or a business can run the lodging.

Self-catering hotel flats, as opposed to hotel rooms, offer the advantage of being ideal for daily activities: you may cook there, wash your dishes, and do your laundry, among other chores. For long-term stays or monthly rentals, hotel apartments could be preferred.

5 Elements that Contribute to your Property's Profitability

At the end of the day, real estate investors want to profit. Here are five crucial elements that can contribute to the success of a rental property investment:

1. Market trends

The increase in the population and the number of jobs directly affects how high the demand is for rental properties. Housing costs typically grow and the demand for investment property rises as more people relocate for employment.

2. Demand and Supply

The market rents decrease as vacancies occur. Because there are more options for the most eligible tenants, landlords must offer incentives and concessions to attract them.

3. Place of the Property

The neighborhood's quality, the caliber of the public schools in the area, the accessibility of parks and shopping, and the crime rate are all elements that influence how desirable one property's location is compared to another.

4. Flow of Funds 

Two of the main justifications for purchasing rental real estate are recurring cash flow and long-term market value growth. How successful a rental venture is, will depend significantly on market rentals, property taxes, and growth possibilities.

5. Property Management

Investing in quality property management can be priceless. Some rental homes in the same neighborhood yield more than others and produce great returns; the reason for this is frequently the property manager. Professional property managers with experience, and who know the market, have a network of reliable suppliers, and know how to fill vacancies quickly.

In conclusion, granted, there are different steps you need to go through, such as deciding which type of property you need, its location, and the budget, among other things. However, a crucial step that you most definitely want to examine closely is finding a real estate agency whose purpose is to improve your quality of life while ensuring that you receive the needed education to make an informed decision.