- Abu Dhabi rents increase by four per cent year on year
- Sale prices for apartments and villas have remains steady
Abu Dhabi rental rates have increased by 4 per cent during the first half of this year when compared to the same period of last year, according to a report released by local real estate firm Asteco.
Apartment rental rates for prime locations are rising with a six per cent increase in rents in the last quarter. The majority of prime, high and mid-quality developments increased by four to six per cent upon contract renewal, whereas new leases were 8 per cent higher than the first quarter of 2015.
Prime developments such as the Eastern Mangroves and St Regis Residences recorded rent renewal increases of 12 per cent and 10 per cent respectively. Many prime locations also have long waiting lists, indicating a shortage of high-end developments, according to the Asteco report.
Prime apartment buildings located on the Corniche recorded little or no increase in the second quarter of this year, with rental rates already at a premium.
The adds that sale prices for apartments and villas have remained steady although year on year figures showed average increases of four per cent in apartment sale prices.
Further to this, Abu Dhabis office market remains very dependent on the hydrocarbons industry, with oil companies dominating top-end office space in the capital. However, as the oil sector continues to suffer at the hands of falling global prices, the emirates main oil companies, many of which are state-owned, may begin to scale down operations. If this happens, it is likely to affect the market as a whole.