It will offer approximate rental prices in various locations for both landlords and tenants.
With the goal of giving prospective renters and landlords in the various parts of the capital an idea of what to charge for their rentals, Abu Dhabi has introduced the first residential rental index in the emirate.
The Abu Dhabi Real Estate Centre stated on Tuesday that the Rental Index, which shows rents in various localities, is accessible online at www.adrec.gov.ae.
“The platform provides easily obtainable and trustworthy data on residential properties, empowering both foreign nationals and locals to gain a better understanding of the rental market and make well-informed decisions grounded in credible information,” stated Adrec.
The latest news is released while Abu Dhabi rentals are still rising. In Abu Dhabi, the latest report from Asteco shows that although villa rents grew by 5% during the second quarter, apartment rents increased by 2% annually.
Additionally, there was a rise in sales prices, with villa prices growing by 3% and apartment prices rising by 5% annually.
“The Rental Index is expected to stimulate the rental market in Abu Dhabi and enhance the emirate’s ability to draw in foreign investors,” stated Adrec’s acting director general, Rashed Al Omaira.
Head of research at CBRE Mena Matthew Green says that the new rental index added a level of transparency to the real estate market, which is clearly very significant when you are an investor.
Before purchasing an asset, investors can use this useful resource to estimate their potential rental income, Mr. Green told The National.
He continued, “clarity for tenants” is another benefit of the rental index when renting an apartment or villa.
“I may check online to find out the typical rental prices for studio apartments, as well as for one, two, and three beds. As a tenant, it facilitates future planning and helps you comprehend what your expenses will be, according to Mr. Green.
According to a separate research by CBRE, average apartment rents in Abu Dhabi rose by 6.6% in the second quarter compared to the same period last year, while average villa rents jumped by 2.5%.
The average yearly rent for an apartment in Abu Dhabi as of the second quarter was Dh66,375, while the average cost for a villa was Dh166,261.
According to him, Abu Dhabi’s rental market rebounded from COVID considerably more slowly than what we probably observed in Dubai.
But over the last 12 to 18 months, as diversification initiatives have led to an increase in the emirate’s population and the growth of its non-oil economy, demand for real estate has increased.
“The non-oil employment sector is growing at a good rate, and that is helping the residential market as well,” Mr. Green stated.
The most recent data from Statistics Centre-Abu Dhabi shows that the population of Abu Dhabi increased to little under 3.8 million last year, a significant rise of 83% since 2011.
Abu Dhabi Media Office stated in April, citing Scad data, that the emirate’s non-oil economy grew by 9.1% year over year in 2023, led by “significant strides” in the building, finance and insurance, and transportation and storage industries.
The rise of the non-oil industry helped Abu Dhabi’s overall GDP grow by 3.1% annually over the time, reaching its highest level in ten years.
The rent calculator was also revised recently by Dubai’s Real Estate Regulatory Authority. The Rera calculator is updated on a regular basis to reflect current market rental prices for specific areas and buildings. It was last calibrated on March 1st to make it more indicative of open-market pricing.
We at Henry Wiltshire International welcome any additional information and transparency in the real estate market. The new rental index will give an understanding and overview for tenants and landlords but our specialist leasing consultants will be able to give a greater level of accuracy and specific valuation for your property – or advice on rents in different buildings for tenants.
For more information, please contact us at +971 56 483 3380
