Analyst firm Asteco prepared a new report on the financial situation in the sector of rental property in the UAE capital Abu Dhabi. According to the report, apartment rental rates in the capital increased in price by an average of 6% quarter-to-quarter.
While calls for return of the rental cap in Abu Dhabi haven’t yet led to the introduction of specific regulations, rental rates keep increasing. Most of the properties in the premium segment, as well as higher and middle-price units increased by an average of 4-6%, according to Asteco, upon lease contract renewal; and those apartments rented for the first time, went up by an average of 8%.
Some very popular residential complexes in Abu Dhabi, such as the Eastern Mangroves and St. Regis Residences, saw rental prices growing even more significantly in the second quarter of the year — by 10-12%, the report said. Demand for these apartments was fueled by long waiting lists of those wishing to rent a property here, while properties in such Abu Dhabi districts, as Corniche, witnessed much lower demand, and therefore rents here have not changed during Q 2 period.
In the sales segment prices have not changed, which’s been the leading trend of the real estate market in Abu Dhabi recently, however, in terms of annual rates, housing prices in Abu Dhabi statistically increased by 4%, Asteco experts report.
“New launches will add in excess of 3,600 new apartment units to the market from 2018, in addition to the 1,800 units announced during 2014, bringing much needed new supply to Abu Dhabi’s market. This is also a strong indication that developers are optimistic about market prospects, and both buyers and tenants will ultimately benefit from more choice,” – also said the report.