Rents in affordable residential areas in Abu Dhabi will remain unchanged | Job Binary


Dubai: Rents in Abu Dhabi’s medium and affordable residential areas were little changed in the 12 months to September, while increases in even the most expensive locations were limited to a few percentage points, according to Asteco’s new market update. .

In areas like Al Khalidiya and Al Bateen, a one-bedroom lease in a slightly older building would average Dh35,000 to Dh45,000, while in central Abu Dhabi it would be Dh42,000 to Dh45,000.

Head to Khalifa City and MBZ City, where a one-bedroom would average between Dh32,000 and Dh42,000.

Expand your search for high-end properties, and a one-bedroom on the Corniche would cost an average of Dh60,000-70,000. But what is significant are the near-static rates in Abu Dhabi’s wider residential rental market, while Dubai’s average rent increases have crossed the 20 percent mark and Sharjah’s new/existing leases are around 5-8 percent.

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Abu Dhabi has seen continued buyer interest in offplan launches such as the Bloom Living development. In the next 3 to 5 years, there may be a big change in the buying interest of end users in the emirate.

It’s not as if there has been a massive influx of newly completed buildings in Abu Dhabi, which is why rents remain stable. Asteco estimates that 5,100 apartments were completed in the first half of 2022 and 1,000 apartments in July-September. In the current quarter, 2,350 additional units are expected.

In fact, “a number of lower-quality buildings on Abu Dhabi’s main island have seen marginal declines in rental rates,” Asteco’s report said. “This is mainly due to increased transfers from the city to areas where a significant amount of new goods have been delivered and handed over over the years, including Al Reem Island.”

How are Al Reem Island rents increasing?

According to the latest listings, one-bedroom apartments on Al Reem Island are available from Dh47,000, with many priced between Dh50,000 and Dh52,000. But new high-end builds even have the same shape for well over Dh70,000. Similar expensive buildings in Saadiyat Beach or Yas Island also have one beds, averaging Dh70,000-80,000 and Dh65,000-75,000 respectively.

“While average residential rental prices remained broadly unchanged over the past three months, Asteco recorded significant rental growth across a range of premium and quality apartments,” the report adds.

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The $10 billion Jubail Island is a huge project overall and has consistently recorded project and sales milestones.

Much the same had happened in Dubai last year, with the first rental incomes in five years starting in the Palm, Downtown and DIFC areas, before soon filtering towards Dubai Marina, Business Bay and JLT.

Watch out for trends in job creation

Whether Abu Dhabi’s upper middle and mid-market areas also witness such rental incomes will depend a lot on new jobs and the addition of new residents. New hires in the energy and financial services sectors will be key in determining whether rents will remain unchanged. And if so, how soon will it happen.

For now, as noted in Asteco’s report, relocations will continue as residents take full advantage of the current rental trend. More buildings will be delivered next year, and that would take up a lot of that as well.

Let’s compare again the real estate market in Dubai from the beginning of 2021, when the high migration rate started. At that time, tenants wanted to move to bigger properties, preferably ones that offer plenty of green and living space. As this phase established, upper and mid-market areas such as JVC, Arjan, parts of Dubailand and Midriff saw significant demand. It was at that time that rents also started to bring significant profits.

Make those decisions quickly

Abu Dhabi renters are still considering whether to move or renovate, they need to make these decisions quickly. The market dynamics may soon change in rental premises.

Offplan is launched in Abu Dhabi

Off-plan launches benefit Abu Dhabi developers in Abu Dhabi, while Aldar continues with new off-plan launches – for example in Saadiyat and Yas – projects from the likes of Bloom Holdings (and Bloom Living) and Q Properties (Reem Hills) have picked up. strong buyer interest. There is also the massive Jubail Island, which has achieved major projects and sales milestones.

“Home sales market activity continued strong in Q3-2022, and demand for new off-plan villa projects and completed villas was high, especially in well-developed communities,” Asteco reported in its latest update. “The villa sales market developed exceptionally well during the last 12 months. The high-quality villa communities, located mainly in Saadiyat and Yas Island, recorded growth of 3-8 percent in Q3-2022 and more than 10 percent compared to the same period last year.



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