Ruling on housing will slash illegal villa-sharing in Abu Dhabi

Reem Island is a property hot spot for newcomers to the capital.

ABU DHABI // A boom in property prices and an end to illegal villa-sharing and illegitimate contracts are expected to be among the benefits of the Abu Dhabi housing decree.

Thousands are thought to have packed their bags and made the move already, filling up what were once half-empty apartment buildings and more remote areas.

With some preferring to remain close to the kind of amenities they had in Dubai, the hot spots for newcomers have been Abu Dhabi's newest developments, including Reem Island, Al Reef and Raha Beach.

"Raha Beach has seen a huge influx over the past four to five months, to the extent that prices have increased," said Bem Crompton, managing partner at Crompton Partners Estate Agents. "There is very little availability there now."

The population surge, he said, had led to more remote areas being seen as legitimate communities.

Many in Abu Dhabi have also moved out of illegally partitioned villas and obtained legal contracts, as it is now necessary to provide proof of residence.

Mr Crompton said illegal villas were a common occurrence in Khalifa City and on the island.

Anita Mathews, office manager at Quest property services, said she knew of cases where contracts were drawn up, but the properties stayed empty. Now, employees will also be required to present utility bills."People will need to move out of split villas where they cannot get water and electricity bills split," she said.

Mr Crompton said that although there was a price surge as demand increased in some areas, more specifically Abu Dhabi's latest developments, rents in Abu Dhabi city centre have decreased since the start of the year, by as much as 10 per cent.