A recently introduced rental index will soon allow tenants in Abu Dhabi to follow changes in the real estate market.
You can access the index at adrec.gov.ae. The Abu Dhabi Real Estate Center (ADREC) is in charge of it. It also includes Al Ain rental ranges.
“The Rental Index will energise the rental market in Abu Dhabi and further contribute to the emirate’s competitive edge to attract international investors,” said Rashed Al Omaira, Acting Director General, Abu Dhabi Real Estate Centre.
“This initiative will increase the attractiveness of the real estate sector and contribute to our efforts to create a more sustainable and resilient market.”
The new Rental Index will assist in setting new leasing activity benchmarks or resetting those that already exist in the Abu Dhabi real estate market, which has witnessed a rise in rental rates in recent years.
As more homes are turned over on Yas, Saadiyat, and Reem islands, Abu Dhabi has witnessed a significant increase in new leasing activity at the top end of the residential rental market. In the most recent quarters, rent increases have stayed within a limited range.
“Average apartment rents saw modest quarterly and annual increases of 1- and 2 per cent, respectively,” says a new report from Asteco. “However, select developments/areas registered more substantial growth, with quarterly increases nearing 5 per cent and annual growth reaching up to 10 per cent.”
Yas Island two-bedroom apartments from the property services company typically rent for Dh105,000 to Dh135,000. A comparable apartment on Saadiyat Island would cost between Dh80,000 and Dh110,000.
When it comes to more mid-tier apartment choices, ‘especially those in the CBD (Central Business District) and Corniche areas ‘also recorded slight rental increases’. “Comparable mid-end properties in prime investment areas like Reem and Yas Islands experienced annual growth of over 5per cent,” the Asteco report finds.
“Properties at the lower end of the market exhibited stability, primarily due to landlords offering attractive lease terms to entice tenants. However, the emphasis on quality remained a driving force, contributing to overall modest rental growth. Older properties lacking modern amenities may face slight downward adjustments in rental rates.”
