Rental prices dropped in some of Abu Dhabi's less expensive areas in the third quarter of the year, though the cost of luxury living is on the rise.
Khalifa City A is an attractive option for those looking for a bargain, with the average yearly rent for a studio at a pocket-friendly Dh28,000 — unchanged from quarter two — and one-bedroom apartments at Dh41,000, down 0.9 per cent in the past three months.
While luxury rentals are up 10 per cent across the board, there are still good deals to be found in some of the capital's most popular spots.
Haider Tuaima, from real estate consultancy ValuStrat said Abu Dhabi has not seen a surge in rental costs as Dubai has.
The average annual rent for a villa in Dubai reached Dh268,758 ($73,171) last month after prices jumped 26 per cent in the year to the end of September, CBRE reported. Average apartment rents soared 27 per cent to Dh89,986.
"As a whole, Abu Dhabi city has seen rents stabilising this year with some properties even seeing a fall in prices," he said.
There are relatively few new properties coming on to the market compared to Dubai, where about 50,000 new homes are in the works.
"We are expecting some 7000 new units in the market by the end of this year," he said.
"And there are no major projects that will complete in the next three or four years except for some high-end developments like Louvre Residences and Jubail villas."
On Yas Island, the price of a two-bedroom apartment has dropped by 10.27 per cent and one-bedroom units by 5.7 per cent, Bayut and dubizzle’s third quarter report for 2022 for the emirate of Abu Dhabi showed.
On Reem Island, the rental price of one- and two-bedroom units has dropped by less than 2 per cent, says the report.
Rents for cheaper units in the Hamdan Street and Tourist Club area also decreased by 1 to 4 per cent. The rental price for a two-bedroom apartment in Khalifa City A also fell by 2.36 per cent in the third quarter.
Some of the biggest rental increases were found in the Corniche.
A one-bedroom unit currently costs about Dh75,000 on average (up 6.67 per cent on Q2), a two-bedroom apartment will typically set you back Dh101,000 (up 3.59 per cent), and a three-bedroom unit is Dh116,000 on average (up 9.06 per cent).
Where to rent in the capital
Khalifa City A
Khalifa City A, located on the main motorway to Dubai, is the most popular and cheapest area to rent in Abu Dhabi, as per the report. The area has developed into a sprawling residential hub, dotted with schools and nurseries.
The going rate for two bedrooms in the area is Dh60,000 for the third quarter of 2022 — a decrease of 2.36 per cent from the last quarter.
The price for one-bedroom units in Khalifa City A also fell by 0.90 per cent to Dh41,000 while rents for studios remained unchanged at Dh28,000.
Al Khalidiya and Muroor
Al Khalidiya also remains popular for reasonably priced units. One- and two-bedroom properties cost Dh53,000 and Dh 68,000, respectively, and have not reported an increase this quarter. Studio prices remain unchanged at Dh30,000.
Rents in Muroor, located a few blocks away from busy Al Salam street, have also remained unchanged.
The going rate for one- and two-bedroom apartments are steady at an average of Dh40,000 and Dh53,000, respectively. But the rent for studios increased by 3.74 per cent to Dh29,000.
Al Reem Island
Al Reem Island, located 600 metres away from the capital's city centre, is the most sought-after area for luxury apartments.
The mixed-use development, with its combination of luxury apartments, penthouses and villas, is one of Abu Dhabi’s fastest growing residential communities.
The average rent of a one-bedroom apartment is now Dh58,000 (down 1.25 per cent), with a two-bedroom property available for Dh86,000 (down 0.98 per cent).
The average rent for a three-bedroom home remained unchanged at Dh127,000.
Al Raha Beach
Al Raha beach apartments and villas have attracted residents who want to live closer to the beach and far away from the hustle and bustle of the city centre.
A one-bedroom apartment will cost an average of Dh64,000 (down 3.64 per cent), with two-bedroom properties at Dh97,000 (down 7.16 per cent).
Three-bedroom rentals remain at Dh162,000.
Known as Abu Dhabi’s entertainment hub, Yas Island is home to Ferrari World, Yas Water world and Warner Brothers theme park. Many new residential communities have also sprung up, making it a quickly expanding community.
Rents for two-bedroom units in the seafront community fell by 10.27 per cent and are now available at an average of Dh89,000.
The price for one-bedroom units has also dropped by 5.7 per cent, to Dh60,000.
The rent for five- and six-bedroom villas also dipped by 1.95 and 0.30 per cent, respectively.
But market trends show rental prices for four-bedroom villas have increased by 4.86 per cent.
A four-bedroom house costs about Dh294,000 in Yas, while five- and six-bedroom homes cost around Dh302,000 and Dh548,000, respectively.