Tenants in the UAE are increasingly moving to higher quality properties

According to experts, the average rent for a 1-bedroom apartment in the UAE varies from AED 35,000 to AED 40,000 per year ($9,530 - 10,900), while an additional surcharge of 20% or more may be charged for new apartments.

Tenants in the UAE are increasingly moving to higher-quality real estate, increasing rents in new buildings and Class A buildings against the background of the continued influx of wealthy people into the country.

On the other hand, older and lower-quality buildings with a smaller set of services on the territory have become more likely to face the problem of increasing vacant housing, especially in the Emirate of Sharjah.

In 2022, rents continued to rise in some areas of the country due to a shortage of apartments in the ultra-luxury real estate category, as a large number of foreigners flocked to the country and continue to flock.

However, rents are currently stabilizing after a significant increase over the past couple of years.

Real estate consulting company Savills reported that leasing activity in Abu Dhabi remains stable. "The bulk of the requests come from tenants moving to higher-quality apartments".

In the category of apartments, rents on Saadiyat Island in Abu Dhabi increased the most - by 36.8%, followed by Al-Rim Island (11.1%) and Al-Rif (3.3%). Rents in Al Raha Beach remained stable. In the villa/townhouse segment, Saadiyat Island is again the leader with a 36.8% increase in rents, followed by Al Reef (7.7%) and Al Raha Garden (6.9%). Rents in Hydra Village and Gold Gardens remained stable.

JLL, another real estate consulting company, recently predicted that 2,000 apartments in the capital alone will enter the rental market in the near future.

At the same time, Savills expects that a significant volume of new housing offers in Sharjah will improve the rental situation in 2023 and beyond.