Sunday, 18 April 2021 08:50 GMT

Abu Dhabi rents rising but at a slower pace


(MENAFN - Khaleej Times)

Despite what some real estate companies are saying rents are not dropping in the Capital. In fact they are still rising but not as much as they did in previous years.

"With the oil prices down and a lot of people leaving the emirate we were expecting rent to at least stay the same. But we've just got a letter from the landlord informing us that our rent will increase by 15 per cent from next June when we are due to renew" said Amira Khalifa a Lebanese resident here.

Currently her family pays Dh95000 per year for a three bedroom apartment in downtown Abu Dhabi but from June she would have to pay Dh110000 per year.

"We moved into this apartment two years ago as the landlord in our previous one was raising the rent by 20 per cent which we couldn't afford. Now we are forced to look elsewhere putting up with moving costs and stress again because Dh110000 is too much" she added.

By Abu Dhabi standards Dh110000 for a three bedroom apartment is a rare gem as this is usually the price of a one bedroom flat but Khalifa's apartment is owned by the Abu Dhabi Commercial Properties which rents out properties at lower rates than private investors owners or real estate agencies. "My neighbours in Al Raha Gardens had to move out because the landlord was asking for a 20 per cent rent increase. They tried to negotiate the hike with the owner but he didn't reduce a penny. Now the property has been empty for six months" said Jane Leason a Briton residing in Abu Dhabi.

Many have also hoped that the new Law No 3 of 2015 regulating the real estate sector in Abu Dhabi which came into effect on January 1 this year would bring the rent cap back or introduce a rent calculator that would somewhat regulate and keep rent increase under control but the new law does nothing for residents.

According to some real estate agents in Abu Dhabi the rent situation in the Capital is becoming "better". A property shop investment agent said he managed to even bring down the asking rent for a couple of properties this year. He also added that "more and more landlords" are keeping the rent as it is for existing tenants.

"In my experience that is not the case" said Zubair Mir a Pakistani resident here.

"Everybody I know friends family friends of friends says their rents keep going up. The increase is not as much as it used to be but the minimum landlords are asking is five per cent hike" he told Khaleej Times.

"Another trend is the one cheque payment. Many owners say they will only increase the rent by five per cent if the tenant pays the annual rent in full as against two or three cheques."

With rent hikes reaching a all-time high last year coupled with lack of car parking traffic or construction noises and a lack of outdoors spaces more residents are moving outside the main island. Not surprisingly the rents in places such as Muneera Khalifa City or Hydra Village some 50km outside Abu Dhabi have gone up by 32 per cent last year.

A two bedroom townhouse in Hydra Village for example has gone up from Dh90000 annual rent in 2015 to Dh105000 now.

Silvia Radan I'm a senior journalist with 22 years experience in all forms of mass media. Originally from Romania I lived and work in Bosnia Uzbekistan England and for the past 10 years in UAE. I specialize in art culture traditions heritage but also environment and the hospitality industry. I'm passionate about jazz and world music cinema mythology and offroading - I'm a marshal with one of UAE's offroading clubs!


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