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Abu Dhabi residence law leads to 20 per cent rent increases
| Published: | 14 Oct at 6 PM |
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Tagged: Property Abroad, Dubai
The decree passed by the Abu Dhabi government that all public employees must live within the emirate has caused a huge hike in rents within the region.
The decree was aimed at stopping the two-hour daily commute from nearby Dubai by expat employees and wealthy Emiratis, all domiciled in Dubai due its more relaxed lifestyle. According to local real estate specialists, the former commuters have mostly moved to three areas, Teem Island, Al Reef and Raha Beach, causing both house prices and rentals of upscale properties to hit a rising spiral.
Average rents for luxury condos in the newly popular areas of Marina Square and Abu Dhabi Island have leapt by between 20 and 29 per cent as against rents in formerly fashionable areas such as the Corniche and central Abu Dhabi , which have fallen by around 40 per cent. One property agent stated that, if a vacant property is found, his company can easily find a tenant willing to pay a premium price.
Even so, property prices across the board in Abu Dhabi have not yet reached the heights seen just before the financial crash in 2008, with most between 20 and 50 per cent lower and demand still to rise to its peak. Local real estate agents are insisting that the present rises are not the first signs of a property bubble in the region, and are encouraging investors to buy now to take advantage of further increases in the future.
The decree was aimed at stopping the two-hour daily commute from nearby Dubai by expat employees and wealthy Emiratis, all domiciled in Dubai due its more relaxed lifestyle. According to local real estate specialists, the former commuters have mostly moved to three areas, Teem Island, Al Reef and Raha Beach, causing both house prices and rentals of upscale properties to hit a rising spiral.
Average rents for luxury condos in the newly popular areas of Marina Square and Abu Dhabi Island have leapt by between 20 and 29 per cent as against rents in formerly fashionable areas such as the Corniche and central Abu Dhabi , which have fallen by around 40 per cent. One property agent stated that, if a vacant property is found, his company can easily find a tenant willing to pay a premium price.
Even so, property prices across the board in Abu Dhabi have not yet reached the heights seen just before the financial crash in 2008, with most between 20 and 50 per cent lower and demand still to rise to its peak. Local real estate agents are insisting that the present rises are not the first signs of a property bubble in the region, and are encouraging investors to buy now to take advantage of further increases in the future.
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