Abu Dhabi residents chase lower rental locations

Dubai: Abu Dhabi’s residents concerned about affordability are heading out to Mohammad Bin Zayed City in a search for lower rents. Some are also starting to get help from their landlords by way of multiple cheques.

But, on the whole, average rentals in Abu Dhabi have remained steadfastly high during the first quarter, according to the latest update from CBRE, the consultancy. If at all there has been some softening, these are limited to the higher end residential apartments. Even then leases in Corniche and Khalidiya for upscale one- and two-bedroom units are a whopping Dh120,000 and Dh180,000 respectively.

     Check rental apartments in Abu Dhabi from the listings' page.

Abu Dhabi’s residential rental space remains in the grip of demand and supply imbalances.

Fewer supply of mid-tier rental properties means that those that are already there carry a higher rental demand. And the majority of these are already occupied.

“With a continued shortage of affordable homes in the capital, rental levels for lower priced residences will remain strong, with the residential market gravitating towards value amidst sustained growth in the cost of living,” said Mat Green, Head of Research & Consulting UAE, CBRE ME.

As for property sales, transaction volumes remained flat through the first three months. There was “no major change in average residential prices”.

Leading developers will be hoping to ignite some sort of demand during the latest edition of Cityscape Abu Dhabi, which opens Tuesday.

“Al Raha Beach and Reem Island remain popular investment locations with typical sales rates ranging from Dh14,265–Dh17,760 per square metre,” said Green.

     You may also want to check Al Raha Beach property listings.

“Al Reef and Hydra Village, which serve as more cost sensitive locations, had prices ranging between Dh8,500-Dh12,375 per square metre.”

Source: Staff Report, gulfnews.comGN


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