Apartment Rents in Abu Dhabi Fall

Rents had resumed their marginal downward trend in November after more than four consecutive months of stability in the rental market in the capital, disclose the survey results, which were used to create the KT-Asteco Rental Monitor.

Increase in availability and revival of market activity after the usually slow active summer period were the factors identified by the Asteco analysts for marginally pushing down the rents in Abu Dhabi since November.

Recommended For You

Israel, Lebanon ceasefire will be extended by 45 days, US says

UAE minister discusses Iran's attacks, threats to vessels with IMO chief

UAE affirms its measures were defensive to protect sovereignty, civilians

India's CBSE mandates three languages for students from Grade 9 starting July 1

Israel attacks targets in southern Lebanon following evacuation orders

 

The handover of Al Reef villas has led residents to move from apartments in the city centre to villas, thus leading to a decline in rentals rates. New buildings were also being handed over in Mohammed Bin Zayed City area near Mussaffah and this was leading to a slide in the rental levels in those areas. Interestingly, the survey had shown that rents remained unchanged in October and November for one-, two- and three-bedroom apartments in Mussafah areas.

However, on the whole one-and two-bedroom apartment units are still in high demand in Abu Dhabi with little available supply.

On the other side, the low rental rates in Dubai (in Discovery Gardens, for example) combined with higher quality of living are persuading more residents to move to Dubai and commute daily to Abu Dhabi. This in turn affects Abu Dhabi rentals as residents are less willing to pay high rents when they have better quality options for lower rates in Dubai, the Asteco analysts said.
Earlier surveys had found that apartment rents in Abu Dhabi were declining from April to June. The growing availability of units, a cash squeeze experienced by many tenants, and an internal shift of population were some of the most important factors, which contributed to this earlier slide. But that downward trend paused for the first time in July, when rent levels remained unchanged from the previous month's level. The stability in the rental market continued till November when the slide resumed, albeit in a slow pace.

Rents for one-bedroom apartments in the sought-after areas such as Corniche, Khalidiyah, Bateen, Khalifa Street and Salam Street have declined to Dh100,000 in December from Dh110,000 in November. The leasing prices of two bed-room apartments fell from Dh135,000 in November to Dh125,000 in December. The rates for three bedroom apartments came down to Dh165,000 from Dh180,000 which was the prevailing rent in the last couple of months including November, 
the survey shows.

The study shows that the average annual rent for a single-room apartment in the Passport Road Area, Defence Road, Tourist Club area, Airport Road and Hamdan Street, declined from Dh90,000 in November to Dh80,000 in December. Rents for two bedroom apartments in these areas edged down to Dh110,000 in December from the level of Dh120,000 prevailing in the last couple of months. Rents for three-bedroom apartments in these areas also came down to Dh135,000 in December, from the level of Dh150,000 in 
the recent months.

In areas like 'Between the Bridges', Mussafah, Mohammed Bin Zayed, Khalifa A and Khalifa B, average rents of one-bedroom apartments came down to Dh70,000 in December. The prevailing rate was Dh80,000 for this category of apartments in those areas. The rents for two-bedroom apartments in those areas came down to Dh80,000 in December from the levels of Dh95,000 prevailing in the previous months. There was also a decline in the rates for three-bedroom apartments to Dh110,000 in December. The rates were Dh125,000 in the previous months. - ramavarman@khaleejtimes.com