Dubai:
Abu Dhabi’s residents need a breather from rental spikes and they will need it soon.
‘Following a 12 per cent increase during the past year, many residents in the capital are becoming increasingly concerned over the escalating cost of living, particularly as utility rates are also on the rise’, the latest CBRE report on Abu Dhabi’s realty trends notes. ‘Over the past year average rental growth has been relatively consistent, ranging between 2 and 3 per cent for each of the past four quarters. This preceded an initial spike in rentals during the latter stage of Q4-2013 immediately after the removal of the rent cap’.
Some sort of relief from the burden could come in the form of a ‘new rental matrix’, which will replace the old rental cap system, the CBRE report adds. But the launch schedule for the rental matrix is yet to be confirmed. Over the next four years, a best estimate suggests around 35,000 residential units getting completed in the emirate.
For two-bedroom units, always racking up the highest demand, average rentals were Dh141,000 per year, while at prime developments, these would scale up to around Dh150,000-Dh205,000.
Meanwhile, three-bedroom apartments averaged Dh168,500, rising by more than 10 per cent within a 12-month time-frame, according to CBRE. For prime locations, these shoot up to Dh240,000-285,000. The highest three-bedroom rental rates are also found within the St. Regis Residence.
At the Aldar built Burj Mohammad Bin Rashid Tower, there is already a 90 per cent occupancy — out of 474 units — in the short time it has been on the market. It was handed over late last year,
Rents for two-and three-bedroom units average Dh150,000 to Dh245,000, according to CBRE.
