ABU DHABI // The gap between expensive and low-cost rental properties in the capital is widening, a new map of rent prices shows.
Rents soared on the back of demand created by a rising number of new residents, as well as government employees relocating to the capital last year, while the end of the rent cap has also led to increases in prices.
High-end apartments have gone up the most, as data from Dubizzle, the classifieds website, and estate agents makes clear.
A slice of luxury on Saadiyat Island will cost you about Dh110,000 a year – while a one bedroom flat in Al Bahia costs just Dh25,000.
With The National’s new rent price map, bargain hunters and big spenders alike can now view the city’s prices at a glance.
The map compares the price of one-bedroom apartments, which are in high demand among the city’s expatriate workforce, and are a good proxy for the price of larger flats.
Also launched today is Ndoors.me, a rent comparison site that will allow users to view areas and rents as they change and develop.
Tenants, landlords and estate agents will all benefit from being able to peruse Abu Dhabi’s housing market on an area-by-area basis.
After the end of the rent cap, it’s more important than ever to be fully informed about the emirate’s housing market.
We’re keen to make the housing market more transparent, and to encourage Emiratis and expatriates alike to become ever more financially literate.
Not everywhere has been affected by rent increases equally, data on the housing market shows.
Abu Dhabi’s centre remains reasonably priced, as newer developments prove the most popular. One bedroom apartments in the city’s bustling Tourist Club Area can be picked up for about Dh55,000, in Mushrif for Dh65,000, and in Nahyan Camp for Dh75,000.
Prices in the centre of the island remain lower, due largely to the quality of housing stock in the area.
“Some of the buildings are older, and these are not as popular. Expats want whitewashed flats with modern facilities,” said Thomas Williams, residential leasing consultant at Better Homes.
Flats “further afield become cheaper – the closer you come to the city, the more of a premium you pay”, he said.
Rents are determined by “the number of people who want to live in that locality, and the availability and quality of the product”, said Andrea Menown, head of leasing at LLJ Properties.
“If you’re willing to make a small sacrifice – no amenities, or supermarket, or cafe [for instance] – you can get a lovely property, but a lot cheaper,” said Mr Williams.
“Newer developments are [also] more competitive because of the supply – in Hydra village [in Al Reef], which is quite a way from the city, and it is dramatic to see what you can get for your money.”
Big variations are also seen within areas. Apartments in Al Reem vary in price between Dh75,000 in Ocean’s Cape, while a place in the Marina Square development will cost you Dh110,000.
Jones Lang La Salle’s quarterly report showed rent rises of 16 per cent in Abu Dhabi’s most popular districts last year. Reem Island, Khalifa City, Al Reef, Al Raha Beach, and Khalidiya all increased by this amount on average – with the largest increases seen in Khalifa City, which rose on average by 29 per cent, as commuters sought to take advantage of its relatively lower rents, while new, higher-priced housing stock was added.
“Prices have changed even over the past few months,” said Drica Rodrigues, head of residential leasing and sales at Cluttons, which offers property management, agency and consultancy services.
Data from Dubizzle showed that rent prices have increased in some of the capital’s most exclusive areas by up to 40 per cent.
The Government’s requirement that public-sector workers relocate to Abu Dhabi, and the lifting of the Abu Dhabi rent cap, have both driven changes in rental prices, Mr Williams said.
Data for the rent map was provided by Cluttons.
abouyamourn@thenational.ae
