Rents fell in some of Abu Dhabi’s cheaper areas in the third quarter of the year, even as the cost of luxury living continues to rise.
Khalifa City A is an attractive option for those looking for bargains, with the average annual rent for studios at a pocket-friendly Dh28,000 (unchanged in quarter two) and one-bedroom apartments at Dh41,000, down 0.9 per cent. in the last three months.
Although luxury rents have risen by 10 per cent across the board, some of the capital’s most popular locations still offer good deals.
Haider Tuaima, a real estate consultant at ValuStrat, said Abu Dhabi has not seen rental costs rise like in Dubai.
The average annual rent for a villa in Dubai was Dh268,758 ($73,171) last month after prices rose 26 percent in the year to the end of September, CBRE reported. Average apartment rents rose 27 percent to $89,986.
“Overall, rents in Abu Dhabi city have stabilized this year, and some properties have even seen a drop in prices,” he said.
Relatively few new properties are entering the market compared to Dubai, where around 50,000 new apartments are under construction.
“We expect around 7,000 new units to hit the market by the end of this year,” he said.
“And there are no major projects that will be completed in the next three to four years, apart from some high-end developments such as Louvre Residences and Jubail villas.”
On Yas Island, the price of a two-bedroom apartment has fallen by 10.27 percent and a one-bedroom apartment by 5.7 percent, Bayut and dubizzle’s Q3 2022 report on the Emirate of Abu Dhabi showed.
On Reem Island, rents for one- and two-bedroom apartments have fallen by less than 2 percent, according to the report.
Rents for cheaper apartments in the Hamdan Street and Tourist Club area also fell by 1-4 percent. The rental price of a two-bedroom apartment in Khalifa City A also fell by 2.36 percent in the third quarter.
Some of the biggest rent increases were found on the Corniche.
A one-bedroom apartment currently costs around Dh75,000 on average (up 6.67 per cent in the second quarter), a two-bedroom apartment typically costs Dh101,000 (up 3.59 per cent) and a three-bedroom apartment costs Dh116,000 on average (up 9.06 per cent) .
Where to rent in the capital
Khalifa City A
Khalifa City A, located along Dubai’s main highway, is the most popular and cheapest area to rent in Abu Dhabi, according to the report. The area has developed into a large residential center full of schools and kindergartens.
The price of a two-bedroom in the area will be Dh60,000 in the third quarter of 2022 – down 2.36 per cent from the last quarter.
One-bedroom apartments in Khalifa City A also fell by 0.90 percent to Dh41,000, while studio rents remained unchanged at Dh28,000.
Al Khalidiya and Muroor
Al Khalidiya also remains popular for its affordable units. One- and two-bedroom properties cost Dh53,000 and Dh68,000, respectively, and have reported no increase this quarter. Studio prices remain unchanged at 30,000 DH.
The rents in Muroor, located a few blocks away from the busy Al Salam Street, have also remained unchanged.
Exchange rates for one- and two-bedroom apartments are steadily averaging Dh40,000 and Dh53,000. But rent for studios rose 3.74 percent to $29,000.
Al Reem Island
Al Reem Island, located 600 meters from the center of the capital, is the most sought-after luxury residential area.
The mixed-use development with a mix of luxury apartments, penthouses and villas is one of the fastest growing residential communities in Abu Dhabi.
The average rent for a one-bedroom apartment is now Dh58,000 (down 1.25 per cent), the rent for a two-bedroom apartment is Dh86,000 (down 0.98 per cent).
The average rent for a three-bedroom apartment remained unchanged at Dh127,000.
Al Raha Beach
Al Raha beach apartments and villas have attracted residents who want to live closer to the beach and away from the hustle and bustle of the city center.
A one-bedroom apartment costs an average of Dh64,000 (down 3.64 percent) and a two-bedroom apartment costs Dh97,000 (down 7.16 percent).
Three-bedroom rents are still Dh162,000.
Known as the entertainment center of Abu Dhabi, Yas Island is home to Ferrari World, Yas Water world and the Warner Brothers theme park. Many new residential communities have also been created, making it a rapidly expanding community.
Rents for two-bedroom apartments in the seaside community fell by 10.27 per cent and are now available for an average of Dh89,000.
The price of one-bedroom apartments has also decreased by 5.7 percent to $60,000.
Rents for five- and six-bedroom villas also fell by 1.95 and 0.30 percent, respectively.
But market trends show that rental prices for four-bedroom villas have increased by 4.86%.
A four-bedroom house costs around Dh294,000 in Yas, while five- and six-bedroom homes cost around Dh302,000 and Dh548,000 respectively.
Updated: 18/10/2022 at 9:47