Abu Dhabi: It’s good news for tenants in the capital as rents are likely to remain unchanged in 2015, realty experts told XPRESS.
“In 2015, rents are likely to remain stable as demand for rental properties is well matched with existing supply of property units in the capital,” Andrea Menown, leasing manager LLJ Property told XPRESS.
“Following the rent cap removal in Abu Dhabi last year, landlords hiked rents, forcing some tenants to move out. The second half of the year, however, has seen rents remaining at a more sustainable level as tenants are increasingly negotiating prices with their landlords,” said Menown.
Mario Volpi, managing director of Ocean View Real Estate said: “Pockets of Abu Dhabi have recorded steep rent hikes especially in Al Reef apartments and villas, Saadiyat beach apartments and Shams Reem Island. Rents for mid-range apartments in Abu Dhabi increased six per cent in the last three months,” he said.
According to Ocean View Real Estate, rents for apartments in Al Reef Downtown increased 26 per cent in the last three months alone. “Currently, rents for a one-bedroom property here are between Dh75,000 and Dh80,000 per annum.
A three-bedroom apartment fetches between Dh115,000 and Dh130,000. Villa rentals in the area shot up 11 per cent in last three months, thus rent for a four-bedroom property hovers between Dh150,000 and Dh165,000. In Saadiyat Beach, rent for a one-bedroom unit is as high as Dh125,000 per annum and Dh185,000 for a two-bedroom property.
According to Asteco Property Management, rent for a studio apartment in Raha Beach and Saadiyat Island is between Dh90,000 and Dh100,000. “A two-bedroom apartment in the central part of Abu Dhabi ranges between Dh120,000 and Dh150,000 per annum,” said Jerry Oates, general manager, Asteco - Abu Dhabi.
Menown said rents have gone up 20 per cent year-on-year in 2014. “Tenants are preferring to lease in newer, master planned communities which is driving the rental demand here. Popular buildings in prime locations have gone up by around 10 per cent. Rents for one to three bedroom apartments in Al Reem Island are currently Dh80,000 to Dh230,000. Tenants in older properties which are five years old or more have seen the steepest rises,” she said.
“Many tenants looking at their long-term benefits in Abu Dhabi are even considering buying their own house,” she added.
“We expect a busy start to the New Year with many people moving into Abu Dhabi. However, there is a good amount of supply coming up in the next six months as well. Reem Island and the City Centre areas will see handover of several new buildings, including part of City Of Lights development with more than 500 studios, one and two-bedroom apartments. The recent launch of the Burj Mohammad Bin Rashid building has also excited tenants who are increasingly looking to move to newer and well planned developments,” said Menown.
According to investment firm JLL, 18,000 new residential units will be ready in Abu Dhabi between 2015 and 2016. Oates said: “Abu Dhabi is seeing a number of new launches like Aldar’s Al Hadeel project in Al Raha Beach, the Ansam development on Yas Island. Regulatory changes in Abu Dhabi, with the emirate’s plans to launch its own rental index, will further regulate rental prices in Abu Dhabi.”