Abu Dhabi apartment rents are starting to approach Dubai levels in many neighbourhoods, prompting speculation there may be a migration of commuters to the capital.
"There is increasing evidence and sentiment in the market that many professionals who commute from Dubai to work in Abu Dhabi, will relocate to the capital over the summer," Cluttons suggests in its latest report, released today. "Now seeing Abu Dhabi as a more affordable place to live, they will take advantage of the fall in apartment rental levels."
Rental rates in Abu Dhabi have dropped anywhere from five to 10 per cent in the last quarter alone, according to the Cluttons report. That is consistent with the latest report from Asteco Property Management, which shows prices are down as much 40 per cent in some neighbourhoods in the last year.
In Mohammed bin Zayed City and Khalifa City one bedroom apartments are renting for Dh45,000 a year, Cluttons notes. Higher-end neighbourhoods offer one bedroom apartments for about Dh100,000 a year.
"Some annual rental values in new developments in Abu Dhabi are almost at parity with high-end apartment buildings in Dubai Marina and Palm Jumeirah," Cluttons said.
Will low Abu Dhabi rents lure Dubai commuters?
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