Realtors attributed it to the strong demand with the increase in commercial and investment activity... and attracting talent

Tenants: Abu Dhabi rents rise by up to 10% during the summer

  • Realtors confirmed that there is a demand for housing in new properties in Abu Dhabi.

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Tenants in Abu Dhabi said that residential rents increased by up to 10% this summer, amid the absence of offers, noting that the summer period in general is witnessing stability or decline in rents with incentive offers, such as giving tenants a month or two free of charge or increasing the number of payments.

Real estate company officials attributed the rise in rents to the increase in commercial and investment activity in Abu Dhabi, thanks to the facilitations approved by the government during the recent period, which contributed to attracting new tenants, as well as the new residency and visit laws, which had a significant impact on attracting talent from all over the world. Thus increasing the demand for real estate.

Absence of offers

In detail, the tenant, Ahmed Anwar, said that he was surprised by the request of the owner of the building in which he lives in Abu Dhabi, for an annual increase in rent of more than 10% during the past month, amid the absence of summer offers that attract tenants such as getting a month for free or increasing the number of annual payments, noting that The landlord insisted on increasing the rent and gave him two weeks to inform him if he agreed to increase or vacate the apartment.

Anwar added that the summer period during the past two years did not witness increases in rents, but on the contrary, the owner had previously agreed to reduce the rent by 5%, driven by the lack of demand after the repercussions of the “Corona” pandemic.

For his part, the tenant, Rami Suleiman, said that the owner of the building in which he lives informed him, early this month, of his intention to raise the rent by more than 10%, at a time when the offers he was accustomed to during the renewal of the lease contract at this time of the year were absent, such as granting The renter has a month or two free of charge or an increase in the number of payments.

Suleiman pointed out that his income did not increase and it was difficult for him to pay the increase in rent, and therefore he decided to vacate the apartment and look for alternative housing.

calm

The tenant, Suha Al-Taweel, agreed that owners are asking for increases in rents during the current summer, despite the fact that the summer period in general is witnessing calm and stability in rental values, if not a decline.

She stated that the landlord asked her to increase the rent, and that she began searching for an alternative apartment, noting that she had noticed an increase in rents compared to the previous period at different rates.

Attract

In turn, the Chairman of the Board of Directors of the “Future 23” Real Estate Company, Ekrami Hammad, said that the current summer period is witnessing a rise in demand for rental in Abu Dhabi for the first time in years, despite the fact that many families have traveled abroad during the summer since the beginning of the pandemic, explaining that the high Demand has led to increases in rents by up to 10%.

Hammad added that the increase in commercial and investment activity in Abu Dhabi, thanks to the facilities approved by the government during the recent period, contributed to attracting new tenants to reside in the capital, which supported the demand for rental.

Hammad considered that Al Reem Island is one of the top places in demand for rent in Abu Dhabi during the recent period, especially in light of the availability of services and facilities that are in great demand, such as the presence of parking lots, gyms and swimming pools in the buildings.

rise of

Saeed Abdul Karim Al Fahim, CEO of Stratum for Owners Association Management, said, "Abu Dhabi rents are on the rise, even though we are in the summer period, and the rental yield is good and is one of the best in the country now."

Al-Fahim indicated that some owners stopped giving facilities, such as giving one or two months free of charge, or increasing the number of payments and other facilities provided by owners during the pandemic period, after the high demand.

He pointed out the importance of investing in Abu Dhabi now, with the selection of the best places to invest after a comparative study to determine the best real estate investment places during the current period.

Turnout

In the same context, CEO of Skyline Real Estate in Abu Dhabi, Nader Hassan, said that residential rents in Abu Dhabi witnessed increases of up to 10% this summer, pointing out that there is a demand for housing in new properties with the provision of services such as gyms. And the swimming pool, which is not provided by the old buildings.

He stated that there are many options for housing in Abu Dhabi with the presence of new areas that attract tenants in Al Raha Beach and Yas Island, in addition to Al Reem Island, after the companies started handing over new real estate projects in those areas.

stability

In a related development, the real estate expert and CEO of Medallion Associates, Masoud Al Awar, said that the stability in the Emirates and the unparalleled great government support for various sectors, especially the economic and financial sectors during a period considered the most difficult in the world, is the period of the Corona pandemic, as well as residency laws. And the new visit, all of this had a great impact in attracting talent from all over the world and thus increasing the demand for real estate in Abu Dhabi of various categories, especially foreigners, with the increase in real estate investment, which is the backbone of other investments. 

correct bounce

The real estate expert and CEO of Medallion Associates, Masoud Al Awar, said that the increase in Abu Dhabi rents, after two years of decline during the pandemic, is normal in light of an emerging and free market, noting that the increase is reasonable and that it comes based on market data, as it is a correct regression. For all parties including the owner and the tenant.

Al-Awar expected that the market will continue its upward trend during the coming period, in light of the improvement of various indicators after the end of the effects of the pandemic on the economy.

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