Monday, 9 December 2013

@property_finder @PFUAE Al Reem Island is Abu Dhabi’s most desirable community for renters

Al Reem Island has topped the list of Abu Dhabi’s most covetable neighbourhoods from January till November this year, revealed, the UAE’s leading property portal, based on reports from its data centre that offers up-to-the-minute prices trending in the market and user behaviour on the website. The other communities to follow Al Reem Island to make up the list of top five rental communities in the capital include Al Reef, Khalifa City, Al Khalidiya and Al Raha Beach.

Whilst the neighbourhoods popular amongst renters have stayed the same since the start of the year, the price ranges within which tenants are looking for properties show interesting variations, explains Renan Bourdeau, Managing Director and Partner at “In the first quarter, we notice that people searched for rentals in the price ranges AED 80-100,000, AED 140-160,000 and AED 160-180,000. In Quarter 2, the 3rd spot was replaced by the AED 60-80,000 price bracket, which in turn jumped to 2nd spot in Quarter 3.”

Analysing the plausible reasons for this, Bourdeau said, “One explanation could be the residency rule that was implemented in September. Driving thousands to relocate to the capital, the decree is likely to have increased searches and the demand for budget properties. However, this trend was short-lived, as the top rental brackets in October and November have been AED 80-100,000, 100-120,000 and 140-160,000.

Abu Dhabi’s rental market has seen numerous regulations this year, the latest one being the removal of the rental cap. "With higher demand for residential units due to the housing decree and higher rents in Dubai closing the gap between the two emirates, Abu Dhabi owners will now be able to charge higher rents. However, if this increase is market driven, then there will be neighbourhoods like those around the centre that will see sharper rises, driving residents there to seek more affordable locales. How this plays out, we’ll have to wait and watch,” concluded Bourdeau.

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