Rents in Abu Dhabi for one-bedroom apartments in Mohammed Bin Zayed City in Abu Dhabi dipped by 10 percent in the second quarter of 2015 compared to the first quarter, with average rentals at Dh45,000 per annum (pa), according to the latest Abu Dhabi Property Watch report.
The second cheapest area to get a house on rent is Al Ghadeer, where the average rents for one-bed units is Dh52,500 pa, down three percent quarter-on-quarter (q-o-q), Land Sterling, a chartered surveyors and property consultancy was quoted as saying by Emirates 24/7 in the report.
While Rents in Abu Dhabi for Al Reef Downtown registered a five percent increase in rentals, leases average at Dh84,000 pa, the third most affordable community in the capital, the report said.
The costliest area to rent is Saadiyat Beach – average rent for one-bed dwellings – is Dh117,000 pa, but are down three percent q-o-q, it added.
Rents in Abu Dhabi for Tourist Club Area and Muroor went up by 9 percent, with average rents at Dh93,000 pa and Dh100,000 pa, respectively, it was pointed out.
The report further said overall rental activity remained strong across all investment areas as most of the areas maintained positive quarterly and yearly growth.
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Affordable housing segment continues to be under-served despite high demand with little respite expected in the near term as new supply is skewed toward high-end properties.
The emirate removed the rental caps in November 2013, after which certain areas experienced over 50 percent rental hikes, the consultancy reportedly said.
Meanwhile, the report also said average apartment sales prices remained sluggish in the second quarter 2015, as market conditions remained hostile due to oil price volatility that continues to stunt growth.
The overall quarterly prices in the investment areas remained stable, with maximum fall witnessed in Al Reem Island at 5 percent. By end-2015, Al Reem Island may experience further pressure price-wise as new supply is expected to come online, the consultancy was quoted as saying by Emirates 24/7.