The residential rents in Abu Dhabi have risen since the beginning of 2015 until the end of August by roughly ten per cent, compared with the same period last year, say real estate experts.
The increases are mainly in the centre of Abu Dhabi as a result of a shortage in supply, compared with freehold areas, as well as the ongoing practice by some landlords to raise prices, reports UAE-based Aliqtisadi.
However, experts stress that the rate of increase in the emirate’s rents is slowing, compared with 2014, which saw a rise in prices during the first half itself by approximately 15 per cent. This was the result of the liberalisation of rental contracts and the exploitation of some owners who imposed unreasonably high price increases.
Asteco Property Services reveals that the rents for contract renewals of high- and medium-quality apartments in Abu Dhabi during the second quarter of 2015 increased by four and six per cent, respectively, while the prices of new contracts increased by eight per cent, compared with the first quarter.
The company announced rising rents in some well-known areas, such as the Eastern Mangroves and St. Regis Residences, by 12 and ten per cent respectively, during the second quarter, while rents for apartments in the main buildings located on the Corniche settled at the first quarter rates.