High demand for home rentals in Abu Dhabi has left house-hunters struggling to find suitable and affordable accommodation, property experts have told The National.
The emirate recorded a significant increase in residential rental contracts during the first half of 2024, with 49,135 contracts registered, according to data released by the Statistics Centre – Abu Dhabi last week.
This is an increase of 24,811 contracts compared to the same period last year, demonstrating a 102 per cent growth.
“The residential rental market in Abu Dhabi is buzzing right now with lots of activity,” said Mubarak Al Amry, owner of Abu Dhabi-based property agency Mi Casa Real Estate.
“This is mostly because the city is a hot spot for expatriates and professionals, thanks to its strong economy and high quality of life.”
More than 10 residential projects are expected to be completed by the first quarter of 2025, but the current supply, especially in prime areas, is often unable to meet the growing demand, said Svetlana Politova, chief operating officer of real estate agency Whitewill Abu Dhabi.
“This limited supply intensifies competition for available units, pushing rental rates higher,” she added.
Mr Al Amry said many of his clients have struggled to find suitable accommodation “because you can book the unit today [but] the next hour it’s not available any more”.
Al Ain city also experienced a 77 per cent rise in documented rental contracts, while Al Dhafra region reported 331 contracts compared to 144 last year.
This record growth in the property market is fuelled by growing confidence in the city among local and international high-net-worth individuals, said Diana Nilipovscaia, chief executive of international real estate developer Mered.
“Abu Dhabi’s competitive pricing, at about one-third more affordable than Dubai, has made it an attractive market for both high-net-worth domestic and international buyers who are willing to spend $408.3 million on residential property, further stimulating the rental market,” she added, citing a recent report by Knight Frank.
Ms Politova agreed the city’s robust economic growth and stability make it an attractive destination for professionals, entrepreneurs and investors.
“As one of the main economic hubs in the Middle East, Abu Dhabi draws a diverse population seeking a stable and prosperous environment,” she told The National.
“Abu Dhabi offers exceptional quality of life, with world-class infrastructure, luxurious amenities and a rich array of cultural and recreational options, and this appealing lifestyle attracts both residents and visitors, further driving up rental demand.”
Luxury homes in demand
Upscale apartments and villas are particularly popular in the emirate, according to Asteco’s latest UAE real estate market report.
Landlords in Abu Dhabi’s prime residential areas, particularly in waterfront communities such as Al Raha Beach, Saadiyat, Yas and Al Reem Islands, have benefitted from strong occupancy rates and some properties are now on waiting lists, Asteco stated.
Dubizzle’s latest report on the capital’s rental property market for H1 2024 found mixed trends for average rents among apartments and villas. Compared to H2 2023, the average rent for luxury villas has gone up by 12 per cent, whereas the average yearly rent for high-end apartments has increased by 14 per cent, it stated.
Mr Al Amry said rental prices can vary quite drastically depending on the type of property and its location. Costs range between Dh45,000 and Dh70,000 per year for studios, while one-bedroom apartments are usually priced from Dh70,000 to Dh100,000 and two-bedroom options range from Dh100,000 to Dh150,000, he said.
Villas are at least Dh150,000 for a three-bedroom, with prices going over Dh300,000 for larger ones.
“One and two-bedroom apartments are especially popular among smaller families and young professionals who want a good mix of convenience and cost,” said Mr Al Amry.
“Villas are also in demand, especially for larger families or those who need more space.”
Key areas like Saadiyat Island, Yas Island, Al Reem Island and Al Raha Beach remain top choices “due to their exceptional amenities and quality of life”, said Ms Politova.
“For potential tenants, this means stable rents in most areas, but expect higher costs in these premium communities.”
Sales on similar trajectory
It’s a similar story for property sales, with Bayut’s Abu Dhabi latest report noting price increases of up to 10 per cent in the affordable category, with an appreciation of up to 6 per cent for luxury apartments and over 10 per cent for villas, for the first half of the year.
Abu Dhabi remains a strong player in the global real estate market, offering long-term stability and growth potential for investors
Diana Nilipovscaia,
chief executive at Mered
The rental price hikes are directly impacting property sales, as more people who have been priced out of renting look for stability in the market.
Abu Dhabi resident Imran Rajwani, for example, bought his first property two years ago after his landlord on Al Reem Island tried to increase his rent for a two-bedroom apartment from Dh62,000 to Dh74,000.
“He gave me the option to move out or pay the same amount,” he told The National. “I realised I would face similar problems if I move to a new place.”
This is when he and his family – his wife, son and parents – decided to buy a two-bedroom apartment on Al Reem Island for Dh980,000. They haven't looked back since, and now consider it their “forever home”.
Ms Nilipovscaia said this robust growth and strong investment potential is what has led her company to expand to the capital with a new residential project, also on Al Reem Island.
“Luxury apartments on Al Reem Island offer a projected rental yield of 6.94 per cent,” she said, adding it was the “ideal location” for Mered's new development.
“The continuous increase in the emirate’s population and foreign direct investment, supported by favourable regulatory framework by Abu Dhabi Global Market and diverse off-plan projects, ensures that Abu Dhabi remains a strong player in the global real estate market, offering long-term stability and growth potential for investors.”
‘Be flexible with preferences’
Mr Al Amry advised house-hunters to remain flexible with preferences as they navigate this competitive rental market.
“It’s a good idea to start your search early and check out different neighbourhoods,” he said.
Ms Politova said thoroughly researching the location is key. “Look beyond the property itself to understand the area’s infrastructure, amenities and overall vibe,” she said.
“Consider the reputation of the management company, as this can greatly impact your living experience.”
Local community forums can be a “treasure trove” of information, she added. “[They offer] insights and warnings from residents about specific buildings or management companies.”
Finally, keep up to date on the latest developments in the market, said Ms Nilipovscaia.
“Staying informed about the latest market trends will enable you to make well-timed, informed decisions, ensuring you secure the best value for your money.”
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
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SQUAD
Ali Khaseif, Fahad Al Dhanhani, Adel Al Hosani, Mohammed Al Shamsi, Bandar Al Ahbabi, Mohammed Barghash, Salem Rashid, Khalifa Al Hammadi, Shaheen Abdulrahman, Hassan Al Mahrami, Walid Abbas, Mahmoud Khamis, Yousef Jaber, Saeed Ahmed, Majed Sorour, Majed Hassan, Ali Salmeen, Abdullah Ramadan, Khalil Al Hammadi, Fabio De Lima, Khalfan Mubarak, Tahnoun Al Zaabi, Ali Saleh, Caio Canedo, Muhammed Jumah, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri
Top New Zealand cop on policing the virtual world
New Zealand police began closer scrutiny of social media and online communities after the attacks on two mosques in March, the country's top officer said.
The killing of 51 people in Christchurch and wounding of more than 40 others shocked the world. Brenton Tarrant, a suspected white supremacist, was accused of the killings. His trial is ongoing and he denies the charges.
Mike Bush, commissioner of New Zealand Police, said officers looked closely at how they monitored social media in the wake of the tragedy to see if lessons could be learned.
“We decided that it was fit for purpose but we need to deepen it in terms of community relationships, extending them not only with the traditional community but the virtual one as well," he told The National.
"We want to get ahead of attacks like we suffered in New Zealand so we have to challenge ourselves to be better."
WHEN TO GO:
September to November or March to May; this is when visitors are most likely to see what they’ve come for.
WHERE TO STAY:
Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.
HOW TO GET THERE:
Etihad Airways regularly flies from Abu Dhabi to Kathmandu from around Dh1,500 per person return, including taxes. Buddha Air (buddhaair.com) and Yeti Airlines (yetiairlines.com) fly from Kathmandu to Bharatpur several times a day from about Dh660 return and the flight takes just 20 minutes. Driving is possible but the roads are hilly which means it will take you five or six hours to travel 148 kilometres.
Spec%20sheet
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%204.7%22%20Retina%20HD%2C%201334%20x%20750%2C%20625%20nits%2C%201400%3A1%2C%20True%20Tone%2C%20P3%3Cbr%3E%3Cstrong%3EChip%3A%3C%2Fstrong%3E%20Apple%20A15%20Bionic%2C%206-core%20CPU%2C%204-core%20GPU%2C%2016-core%20Neural%20Engine%3Cbr%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%2012MP%2C%20f%2F1.8%2C%205x%20digital%20zoom%2C%20Smart%20HDR%2C%20Deep%20Fusion%3Cbr%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%204K%2B%40%2024%2F30%2F60fps%2C%20full%20HD%2B%40%2030%2F60fps%2C%20HD%2B%40%2030%20fps%3Cstrong%3E%3Cbr%3EFront%20camera%3A%20%3C%2Fstrong%3E7MP%2C%20f%2F2.2%2C%20Smart%20HDR%2C%20Deep%20Fusion%3B%20HD%20video%2B%40%2030fps%3Cbr%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%20Up%20to%2015%20hours%20video%2C%2050%20hours%20audio%3B%2050%25%20fast%20charge%20in%2030%20minutes%20with%2020W%20charger%3B%20wireless%20charging%3Cbr%3E%3Cstrong%3EBiometrics%3A%3C%2Fstrong%3E%20Touch%20ID%3Cbr%3E%3Cstrong%3EDurability%3A%3C%2Fstrong%3E%20IP67%2C%20dust%2C%20water%20resistant%20up%20to%201m%20for%2030%20minutes%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh1%2C849%3C%2Fp%3E%0A
Dubai World Cup prize money
Group 1 (Purebred Arabian) 2000m Dubai Kahayla Classic - $750,000
Group 2 1,600m(Dirt) Godolphin Mile - $750,000
Group 2 3,200m (Turf) Dubai Gold Cup – $750,000
Group 1 1,200m (Turf) Al Quoz Sprint – $1,000,000
Group 2 1,900m(Dirt) UAE Derby – $750,000
Group 1 1,200m (Dirt) Dubai Golden Shaheen – $1,500,000
Group 1 1,800m (Turf) Dubai Turf – $4,000,000
Group 1 2,410m (Turf) Dubai Sheema Classic – $5,000,000
Group 1 2,000m (Dirt) Dubai World Cup– $12,000,000
Simran
Director Hansal Mehta
Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey
Three stars
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
The specs: 2018 BMW R nineT Scrambler
Price, base / as tested Dh57,000
Engine 1,170cc air/oil-cooled flat twin four-stroke engine
Transmission Six-speed gearbox
Power 110hp) @ 7,750rpm
Torque 116Nm @ 6,000rpm
Fuel economy, combined 5.3L / 100km
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday, February 8 v Kenya; Friday, February 9 v Canada; Sunday, February 11 v Nepal; Monday, February 12 v Oman; Wednesday, February 14 v Namibia; Thursday, February 15 final
UK%20record%20temperature
%3Cp%3E38.7C%20(101.7F)%20set%20in%20Cambridge%20in%202019%3C%2Fp%3E%0A
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
