Since 1,800 residential units are expected to join the market until the first quarter of next year, the Emirate will also supply building rental values, according to Rashed Al Omaira.
According to a senior official at Abu Dhabi Real Estate Centre (Adrec), Abu Dhabi plans to increase openness and draw in more investment in the real estate industry by providing rental values of individual buildings and updating the rental index on a quarterly basis.
The first residential rental index for the emirate was introduced by Abu Dhabi last month with the goal of offering indicative rental values across the emirate.
The rental index showcases rental prices for apartments and villas in Abu Dhabi City, Al Dhafra, and Al Ain. It may be accessed online at the real estate center’s website.
Rashed Al Omaira, acting director general of Adrec, told The National that the rental index provides you with an exact and correct rental average based on a sector in the emirate of Abu Dhabi that is based on transacted [Tawtheeq] contracts.
The rental index’s next stage is essentially a zoomed-in look at individual residential structures. According to Mr. Al Omaira, this allows us to provide more accurate readings for the rental index because we look at stand-alone buildings individually rather than sectors.
One of the strategy’s objectives is to investigate rental values in the capital’s significant iconic residential buildings. However, Adrec has not disclosed the date of the new initiative’s introduction.
The center was established last year with the goal of regulating the emirate’s real estate market and advancing the industry through innovative strategies.
We let supply and demand decide those pricings, our responsibility is to make sure the market is transparent and partners and customers can obtain information from the real estate industry, according to Mr. Al Omaira.
Presently, when a tenant’s contract is renewed annually, a landlord is not allowed to raise rent by more than 5% per Abu Dhabi law.
In the event that a disagreement arises between the tenant and the landlord, inhabitants have the option to contact Adrec’s phone center or come in person to settle the matter.
We welcome the public to “visit us and raise any inquiries that they may have, as well as to reach us through our digital channels,” according to Mr. Al Omaira.
The real estate market in Abu Dhabi
Due to government initiatives like granting residency permits to retired individuals and remote workers, as well as the expansion of the non-oil economy, the property market in the United Arab Emirates is still seeing a robust recovery after the coronavirus outbreak
According to CBRE, the average price of an apartment in Abu Dhabi increased by 6.2% year over year in the second quarter, while the average price of a villa increased by 3.9%.
The average cost of an apartment was Dh13,405 ($3,650) per square meter, while the average cost of a villa was Dh12,070.
The survey stated that during the same period, rental prices increased significantly, with average villa rents jumping by 2.5 percent and apartment prices growing by 6.6%. The average annual rent for an apartment in Abu Dhabi was Dh66,375, and for a villa it was Dh166,261.
According to Mr. Al Omaira, the real estate market in Abu Dhabi “is very promising.”
“Demand is really high. We recently declared that foreign direct investment has grown at a rate faster than 200 percent annually,” he remarked.
According to the most recent data provided by Adrec, 971 private investors from 75 nations, including the US, UK, China, Russia, and Kazakhstan, purchased Dh3.28 billion worth of real estate in the emirate in the first half of 2024.
Over the course of the six-month period, 12,439 property transactions totaling Dh36.2 billion were reported in the emirate; these consisted of Dh12.5 billion in mortgage transactions and Dh23.7 billion in sales and purchase agreements.
Abu Dhabi’s residential supply
In response to the ongoing demand for real estate, over 1,800 new residential units are anticipated to go up for sale in Yas Island, Saadiyat Island, and Al Reem Island by the first quarter of next year, according to Mr. Al Omaira.
The rollout of new projects and previously approved projects are taken into account as they “carefully monitor” the supply situation, he continued, “to make sure that we’re in an occupancy rate that’s maintained at a healthy delta in the real estate cycle.”
When necessary, we are able to regulate a portion of the stock supply and, as a result, reduce the risk associated with a possible oversupplied market. However, the market is incredibly hopeful right now.
According to him, between 85% and 90% of residential buildings in Abu Dhabi are currently occupied.
As the demand for real estate rises, developers are continuing to start new projects, according to the most recent data.
The largest listed developer in Abu Dhabi, Aldar Properties, unveiled Yas Riva, a new project on Yas Island that offers 151 four, five, and six-bedroom inland & canal-front villas, on Wednesday.
This comes after another project in the Saadiyat cultural district that Aldar launched in July. It is building 281 sky villas and apartments as part of Saadiyat Island’s The Arthouse residential complex.
Abu Dhabi’s Bloom Holding also declared this week that the first phase of the Bloom Living project in Abu Dhabi, which is scheduled for delivery in December, has started with the handover of apartments in Cordoba.
More than 4,500 homes, including villas, townhouses, and flats, are located at Bloom Living, close to Abu Dhabi International Airport. The development spans 2.2 million square meters.
“The ease of doing business in Abu Dhabi and its global footprint both contribute to the city’s attractiveness as a destination for potential investors and to the growth of demand anticipated in the real estate sector,” Mr. Al Omaira stated.
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Source 5 September 2024 National News
