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Dubai: The cost of renting an apartment or villa in Abu Dhabi went up by three per cent in the last quarter, forcing residents to seek cheaper accommodations on the capital’s outskirts, a new report on Tuesday revealed.
According to the latest CBRE report, rents in Abu Dhabi continued to increase between Q3 and Q4 last year, but at a slower pace than at the start of the year. On an annual basis, rents increased roughly 17 per cent.
Mat Green, UAE head of research and consultancy for CBRE Middle East, said more residents are moving to affordable locations. However, the increase in demand for cheaper residential units has led to rent increases in areas that are now popular among the budget-conscious.
Landlords, however, have recently become “more realistic” with their price adjustments, as new residential units have entered the market.
“As the cost of living has risen over the past 12 months, there has been a more noticeable increase in demand for low to middle income units and also for non-prime areas of the capital. This in turn has driven rental growth in more affordable locations as a flight to quality continues,” said Green.
Properties located in the outskirts of Abu Dhabi are now being sought after due to their affordable prices. In particular, more price-conscious tenants are renting units in area outside central city locations, such as Khalifa City A & B, Mohammed bin Zayed City and Mussafa.
The growing number of new schools, healthcare facilities and community retail centres is also helping to attract more family residents into the suburbs.
At the same time, there’s a segment in the tenant community that continues to seek prime properties. According to CBRE, prime master planned projects such as Al Raha Beach, Reem Island and Saadiyat are still popular among tenants looking for quality housing units.
Those who want to live in St. Regis will have to shell out around Dh150,000 to Dh210,000 a year to rent a two-bedroom unit. Houses on Al Raha Beach cost Dh140,000 a year to rent.
Source: Staff Report, gulfnews.com