Abu Dhabi is following its glamourous
rival, Dubai, as the emirate engineers a recovery that could pave way for a new
phase in the performance of its real estate market. Following the ‘live local’
policy and the removal of the rental cap last year, rents have ticked up in the
capital, according to propertyfinder.ae, the UAE’s leading property portal.
“Up until the beginning of 2013, rents in Abu Dhabi were
traditionally considered to be higher than those in Dubai. However, just as the
housing decree was passed late last year, we revealed a decline in Abu Dhabi’s
rental prices even as rents in
Dubai continued to rise, narrowing the price gap between the two emirates.
However, with the removal of the rental cap and the number of new
tenants in Abu Dhabi increasing due to the relocation of government workers to
the city, rents in the emirate are seeing an upswing,” commented Michael Lahyani,
CEO and Founder of propertyfinder.ae.
Reporting an overall hike of over 20 percent in leasing
prices in December 2013, propertyfinder.ae has also revealed individual rent
rises in Abu Dhabi’s popular neighbourhoods. “When we ran the numbers on Market
Price Live this month, our up-to-the-minute data centre, Hydra Village for
instance, already showed an increase of three percent from December 2013
figures. Rents in Mohamed Bin
Zayed City, on the other hand, have risen by over two percent,” said Lahyani.
The latest
move by the government to regulate rental prices in the capital was announced
earlier this month. A rent index, expected to be introduced soon, will use
market data to set fair rents for each of Abu Dhabi’s 10-12 residential zones.
“Numerous residents have been forced to downsize due to the surge in rents. So
the hope is that the index will protect tenants and landlords by maintaining
prices at competitive levels as rents are expected to rise further this year,”
added Lahyani.
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