The apartment rental market of Abu Dhabi posted stronger numbers than its glitzy neighbor Dubai, with the average rental value registering an increase of 3 per cent over July 2016 to arrive at Dh130,000. At 6.6 per cent, the average yield for apartments in the UAE capital in August also remained stronger than Dubai’s, Bayut.com’s calculations showed.
Category-wise, studio units were the clear winners. Though rents stayed stable in August compared to July 2016, the impressive yield of 7.9 per cent made the apartment category a clear favourite with investors. At Dh56,000, the average rent for these units could also be termed affordable.
One-bed units recorded an average rent of Dh91,000, down 1 per cent from the July value; however, the average yield for the category was recorded at an attractive 6.8 per cent. The average rent for 2-bed apartments increased by 2 per cent to Dh132,000 in August from Dh129,000 in July 2016, while the average rent for 3-bed apartments fell to Dh171,000, registering a negligible decrease of 1 per cent in August 2016. Average yield for 2-bed units in Abu Dhabi was recorded at 7.1 per cent, while 3-bed apartments featured an average rental yield of 6.3 per cent.
The average rent for 4+ bed apartments fell 5 per cent to Dh235,000 in August 2016, while rental yield for the category remained 5.5 per cent.
Top localities for renting apartments in Abu Dhabi (August 2016)
1. Al Reem Island
2. Khalifa City A
3. Al Raha Beach
4. Al Muroor
5. Corniche Area
Top localities for buying in apartments Abu Dhabi (August 2016)
1. Al Reem Island
2. Al Raha Beach
3. Al Reef
4. Saadiyat Island
5. Al Ghadeer
Abu Dhabi is warming up for a development spree in the coming years that is set to boost its status as a key regional and international realty hub further. The two combined continue to not only provide immense benefits to investors, but also to the UAE economy as it persists with its drive to prosper through diversity.