The residential rental market in Abu Dhabi is getting hotter this summer with a significant surge in prices across affordable and luxury apartments and villas recorded in the first six months of this year compared to the second half of 2023.
As per an analysis report by a property portal, strong demand has led to rental prices for apartments in popular luxury neighbourhoods like Saadiyat Island and Al Raha Beach to see double-digit growth, whereas prices for affordable flats in expat hubs of Tourist Club Area and Al Muroor have also climbed.
“If we look at the property advertising trends in H1 2024 for the rental property market report in Abu Dhabi, we can clearly see that demand is quite high, with most areas experiencing increases,” Fibha Ahmed, vice president of property sales, Bayut & dubizzle, told Khaleej Times.
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“The landscape is definitely landlord friendly, with luxury segments seeing the most substantial hikes, with apartment rents rising over 20 per cent and villa rents approximately 12 per cent,” Fibha added.
According to Bayut’s report, Khalifa City and Al Khalidiyah have been prominent choices for affordable apartment rentals. At the same time, Mohammed Bin Zayed City and Khalifa City have emerged as the top searched areas for renting affordable villas.
“Areas like Mohammed Bin Zayed City and Khalifa City have become key focus areas for tenants seeking budget-friendly homes, while those in search of luxury residences preferred Yas Island and Al Raha Gardens. In the affordable apartment segment, Khalifa City and Al Khalidiyah attracted the most interest, whereas Al Reem Island and Al Raha Beach were the top choices for elevated apartment rentals,” Fibha noted.
Affordable apartments
Prices for affordable apartments in popular areas have witnessed a rise of up to 8 per cent compared to the second half of 2023.
Here is the average yearly rents and price hikes for a studio: Al Muroor (Dh32,000 at 7.42 per cent), Khalifa City (Dh30,000 at 3.8 per cent), Al Khalidiyah (Dh29,000 at 3.2 per cent), and Tourist Club Area (Dh23,000 at 1.21 per cent).
Rates for sought-after one-bedroom and two-bedroom flats have climbed by up to 8 per cent in these areas. The rents and percentage rise are accordingly: Khalifa City (Dh44,000 at 4.97 per cent and Dh69,000 at 8.78 per cent), Al Khalidiyah (Dh41,000 at 3 per cent and Dh54,000 at 4.61 per cent), and Al Muroor (Dh56,000 at 4.23 per cent and Dh71,000 at 8.46 per cent). No change was recorded in the Tourist Club Area, where a one-bedroom remained at Dh34,000 and a two-bedroom flat at Dh47,000.
Affordable villas
Average yearly rents have surged more than 3 per cent in top areas for affordable villas, especially three- and five-bedroom facilities. Meanwhile, rents in four-bedroom villas have declined in some areas.
Changes in rents for three-bedroom villas are Al Reef (Dh108,000 at 3.88 per cent), Mohammed Bin Zayed City (Dh104,000 at 3.65 per cent), Khalifa City (Dh161,000 at 3.27 per cent), whereas Shakhbout City (Dh117,000) remained unchanged. Prices for five-bedroom villas were between Dh150,000 and Dh174,000 in these four areas.
However, rents of four-bedroom villas rose 6.49 per cent in Khalifa City to Dh167,000, whereas it dipped 1.07 per cent to Dh134,000 in Shakhbout City and 0.6 per cent to Dh136,000 in Al Reef.
Luxury apartments
Demand for one-bedroom luxury flats has resulted in a huge uptick in rents at Saadiyat Island (Dh97,000 up 20.2 per cent), Al Raha Beach (Dh70,000 at 11.2 per cent), and Yas Island (Dh71,000 at 9.21 per cent). The cheapest one-bedroom in the luxury segment is on Al Reem Island (Dh68,000 at 9.13 per cent). There was less activity in price points in these areas for two-bedroom and three-bedroom flats. The costliest is Saadiyat Island where a two-bedroom remained unchanged at Dh155,000. A three-bedroom is available for Dh224,000 at a 1.99 per cent hike compared to the second half of last year. Rates of a two-bedroom flat in Al Raha Beach were at Dh110,000 up 10.6 per cent, and Reem Island (Dh97,000 at 6.66 per cent).
Luxury villas
Among the top areas for renting luxury villas, prices for a four-bedroom facility dropped by 6.77 per cent to Dh317,000 on Yas Island, but rents climbed 12 per cent to reach Dh259,000 in Al Bateen. Other areas, including Al Raha Gardens (Dh171,000 at 1.47 per cent) and Al Mushrif (Dh161,000 at 0.16 per cent) saw little activity. Rents of five-bedroom high-end villas climbed 8.2 per cent to Dh224,000 in Al Bateen, 4.69 per cent to Dh360,000 on Yas Island, 2.59 per cent to Dh234,000 at Al Raha Gardens, and dropped 0.77 per cent to Dh198,000 in Al Mushrif area.