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In July through September 2022, the situation in the real estate market was mostly stable. Data from the consulting firm Asteco shows that the rent grew only in a few top-tier elite residential projects.
The rent on villas increased by 2% quarter-on-quarter and by 4% year-on-year. The rent on apartments rose by only 1% compared to both the previous quarter and the previous year.
In the second quarter of 2022, the rates were stagnant.
The report by Asteco says that the rent reduced slightly in some low-quality buildings located on Abu Dhabi’s main island. The key reason was people moving from Downtown to other communities, where construction of a significant number of new properties, including those on Al Reem Island, was completed over the last few years.
JLL, a real estate agency, reported a sight 2% growth of rent in the capital compared to last year. It noted a strong demand for new housing in investment zones, particularly for townhouses and villas.
Meanwhile, the average rents in the affordable housing segment remained mostly stable, according to Bayut and dubizzle. Slight fluctuations during the year never exceeded 5% for some types of hotel rooms and 11% for luxurious rental homes.
Over the past year, the UAE real estate market demonstrated a rapid growth, as the economy in general recovered after the slowdown caused by the coronavirus pandemic.
The growth was the greatest in the villa segment: by 4% compared to the previous quarter in the Al Raha Beach and Hidd Al Saadiyat communities. The latter accommodates the emirate’s most expensive rental homes. Local rates exceed AED 700,000 (USD 190,000) per year. The rent on apartments increased the most on Saadiyat Island (+3%).
The demand for residences with a large floor area has remained consistently high since the first months of the pandemic, when quarantines and the shift to remote work made many people seek sufficiently spacious homes. This was the reason why the rent on villas grew, especially in the luxury segment, as reported by Bayut and dubizzle. In the case of more affordable properties, on the other hand, homeowners were competing with each other, cutting the prices to attract tenants.
Tenants with a limited budget preferred such districts as Khalifa City A, Al Khalidiya, Mohamed bin Zayed City, and Al Muroor, while wealthier residents opted for Al Reem Island with its opulent apartments.
