Bayut’s 2022 Abu Dhabi rental market report

• Top Neighbourhoods
• Affordable Apartment Rentals
• Luxury Apartment Rentals
• Affordable Villa Rentals
• Luxury Villa Rentals

With 2022 now in the books, it’s time to take an in-depth look at what was undoubtedly another positive year for the Abu Dhabi real estate market. For a comprehensive understanding of search preferences, Bayut’s Abu Dhabi rental market report for 2022 provides a complete overview of the advertised property prices observed in prominent communities during the last year.

A quick look at the Abu Dhabi property market statistics for 2022 reveals a sustained demand for bigger homes, pushing rental property prices upwards for villas. On the flip side, rental costs for apartments in the emirate remained tenant-friendly.

• Prices decreased by up to 9% for apartments, whereas villa rentals experienced increases of up to 12% in the affordable sector.

• Prices in the luxury segment decreased by up to 15% for apartments, with significant increases of up to 29% reported for villas.

To give you a detailed view of the Abu Dhabi rental market, we have compared average rents for villas and apartments from 2022 to those observed in 2021 (excluding room share).

RENTAL TRENDS IN ABU DHABI: TOP NEIGHBOURHOODS FOR RENTING VILLAS AND APARTMENTS IN 2022

As per the data for advertised properties on Bayut, the demand for bigger houses across key communities in the Abu Dhabi property market increased during 2022. This has led landlords to price their rental properties higher, particularly within the luxury sector, to capitalise on the increased demand for villas. As far as the affordable segment is concerned, the rental costs remained competitive and attractive to tenants interested in cheaper properties.

As per Bayut’s 2022 rental market report for Abu Dhabi, budget-conscious tenants searched in areas such as:

• Khalifa City A
• Al Khalidiyah
• Mohammed Bin Zayed City
• Shakhbout City (Khalifa City B)

Those looking for upscale properties preferred the well-established communities of:

• Al Reem Island
• Al Raha Beach
• Al Mushrif
• Al Raha Gardens

Let’s now go in-depth into the rental trends observed in the Bayut Abu Dhabi 2022 property market report.

KHALIFA CITY A IS THE MOST SEARCHED-FOR AREA TO RENT AFFORDABLE FLATS IN ABU DHABI

RENTAL PRICES IN ABU DHABI FOR AFFORDABLE APARTMENTS IN POPULAR AREAS – BAYUT’S 2022 MARKET REPORT

POPULAR AREAS	STUDIO Avg. Yearly RentChange from 2021	1-BED Avg. Yearly RentChange from 2021	2-BED Avg. Yearly RentChange from 2021
Khalifa City A	STUDIO Avg. Yearly RentChange from 2021 28,000 0.00%	1-BED Avg. Yearly RentChange from 2021 42,000 0.00%	2-BED Avg. Yearly RentChange from 2021 61,000 -3.18%
Al Khalidiyah	STUDIO Avg. Yearly RentChange from 2021 29,000 -6.12%	1-BED Avg. Yearly RentChange from 2021 52,000 0.98%	2-BED Avg. Yearly RentChange from 2021 67,000 0.00%
Hamdan Street	STUDIO Avg. Yearly RentChange from 2021 33,000 -1.35%	1-BED Avg. Yearly RentChange from 2021 43,000 -2.60%	2-BED Avg. Yearly RentChange from 2021 59,000 0.81%
Al Muroor	STUDIO Avg. Yearly RentChange from 2021 30,000 -8.49%	1-BED Avg. Yearly RentChange from 2021 39,000 -5.34%	2-BED Avg. Yearly RentChange from 2021 53,000 -1.66%
Tourist Club Area (TCA)	STUDIO Avg. Yearly RentChange from 2021 33,000 -5.44%	1-BED Avg. Yearly RentChange from 2021 42,000 0.00%	2-BED Avg. Yearly RentChange from 2021 57,000 0.00%

Khalifa City A remained the most popular area for reasonably-priced rental apartments in Abu Dhabi based on search trends on Bayut:

• The asking rents of studios and 1-bed apartments in Khalifa City A reported no change. However, the average rent of 2-bed flats decreased by 3.18% from 2021.

• On average, to rent apartments in Khalifa City A, tenants paid AED 28k for studios, AED 42k for 1-bed units and AED 61k for 2-bed flats in Khalifa City A during 2022.

Al Khalidiyah emerged as the second most popular area to rent affordable apartments in Abu Dhabi:

• Rental prices in Al Khalidiyah recorded moderate fluctuations. The average rent for studios in Al Khalidiyah decreased by 6.12%, whereas the asking rents for 1-bed flats in Al Khalidiyah increased by 0.98%. The average rent for 2-bed apartments remained unchanged in 2022.

• The asking rents for studios in Al Khalidiyah averaged at AED 29k. The 1 and 2-bed flats in the area were priced at AED 52k and AED 67k, respectively.

Hamdan Street also retained its popularity for affordable apartments in Abu Dhabi:

• Rental prices for studios and 1-bed apartments in Hamdan Street decreased by 1.35% and 2.60%, respectively. However, the average rent for 2-bed flats surged by 0.81% in 2022.

• The average rent for studios in Hamdan Street was recorded at AED 33k, whereas 1 and 2-bed rental flats in Hamdan Street were valued at AED 43k and AED 59k, respectively. 

Other areas that gained traction among budget-conscious tenants in Abu Dhabi include:

• Al Muroor
• Tourist Club Area (TCA)

Average rents in these areas generally decreased by 2% to 9%. However, the asking rents for 1 and 2-bed apartments in Tourist Club Area (TCA) remained unchanged.

AL REEM ISLAND IS THE TOP CHOICE FOR LUXURY APARTMENT RENTALS IN ABU DHABI

POPULAR AREAS TO RENT HIGH-END APARTMENTS IN ABU DHABI – BAYUT’S 2022 ABU DHABI MARKET REPORT

POPULAR AREAS	1-BED Avg. Yearly RentChange from 2021	2-BED Avg. Yearly RentChange from 2021	3-BED Avg. Yearly RentChange from 2021
Al Reem Island	1-BED Avg. Yearly RentChange from 2021 59,000 1.73%	2-BED Avg. Yearly RentChange from 2021 87,000 2.12%	3-BED Avg. Yearly RentChange from 2021 128,000 1.68%
Al Raha Beach	1-BED Avg. Yearly RentChange from 2021 66,000 -14.47%	2-BED Avg. Yearly RentChange from 2021 102,000 -9.20%	3-BED Avg. Yearly RentChange from 2021 165,000 6.37%
Corniche Area	1-BED Avg. Yearly RentChange from 2021 75,000 0.00%	2-BED Avg. Yearly RentChange from 2021 100,000 -2.16%	3-BED Avg. Yearly RentChange from 2021 119,000 -6.89%
Yas Island	1-BED Avg. Yearly RentChange from 2021 61,000 -9.70%	2-BED Avg. Yearly RentChange from 2021 97,000 -8.59%	3-BED Avg. Yearly RentChange from 2021 124,000 -13.18%
Corniche Road	1-BED Avg. Yearly RentChange from 2021 82,000 2.46%	2-BED Avg. Yearly RentChange from 2021 109,000 3.47%	3-BED Avg. Yearly RentChange from 2021 125,000 3.56%

On the luxury front, tenants largely preferred Al Reem Island for renting upscale apartments in Abu Dhabi:

• Rents of all apartment types in Al Reem Island increased by up to 2% in 2022.

• The apartment rentals in Al Reem Island averaged at AED 59k for 1-bed flats, AED 87k for 2-bed apartments and AED 128k for 3-bed units.

Al Raha Beach also remained a firm favourite among tenants in 2022:

• During 2022, the rent for 1-bed apartments in Al Raha Beach recorded a decrease of 14.5%. The rental cost of 2-bed flats in Al Raha Beach also showed a decline of 9.20%. Conversely, average rent for 3-bed apartments increased by 6.37% in 2022.

• On average, tenants spent AED 66k for 1-bed apartments, AED 102k for 2-bed flats and AED 165k for 3-bed units in Al Raha Beach.

Corniche Area continued to be another popular district amongst those seeking to rent luxury apartments in Abu Dhabi:

• The cost of 1-bed rental apartments in the Corniche Area remained stable, whereas the rental costs for 2 and 3-bed flats dropped by 2.16% and 6.89%, respectively.

• On average, 1-bed apartments in Corniche Area were priced at AED 75k. The 2 and 3-bed flats in the area were available for an average of AED 100k and AED 119k, respectively.

Apart from the aforementioned areas, tenants interested in luxury units favoured the following locations to rent expensive apartments in Abu Dhabi:

• Yas Island
• Corniche Road

The asking rents for flats in Yas Island became more affordable by up to 13%. However, the rental costs of 1, 2 and 3-bed apartments in Corniche Road experienced upticks of up to 3.5%.

MOHAMMED BIN ZAYED CITY IS THE MOST POPULAR AREA FOR AFFORDABLE VILLA RENTALS IN ABU DHABI

MOST SOUGHT-AFTER AREAS TO RENT AFFORDABLE VILLAS IN ABU DHABI – BAYUT 2022 ABU DHABI MARKET REPORT ANALYSIS

POPULAR AREAS	3-BED Avg. Yearly RentChange from 2021	4-BED Avg. Yearly RentChange from 2021	5-BED Avg. Yearly RentChange from 2021
Mohammed Bin Zayed City	3-BED Avg. Yearly RentChange from 2021 93,000 -7.36%	4-BED Avg. Yearly RentChange from 2021 128,000 0.00%	5-BED Avg. Yearly RentChange from 2021 147,000 0.65%
Khalifa City A	3-BED Avg. Yearly RentChange from 2021 134,000 1.22%	4-BED Avg. Yearly RentChange from 2021 148,000 -2.12%	5-BED Avg. Yearly RentChange from 2021 169,000 3.82%
Shakhbout City (Khalifa City B)	3-BED Avg. Yearly RentChange from 2021 115,000 4.55%	4-BED Avg. Yearly RentChange from 2021 133,000 0.81%	5-BED Avg. Yearly RentChange from 2021 150,000 0.54%
Al Shamkha South	3-BED Avg. Yearly RentChange from 2021 118,000 12.0%	4-BED Avg. Yearly RentChange from 2021 131,000 -6.26%	5-BED Avg. Yearly RentChange from 2021 157,000 1.51%
Al Reef	3-BED Avg. Yearly RentChange from 2021 102,000 0.07%	4-BED Avg. Yearly RentChange from 2021 137,000 0.00%	5-BED Avg. Yearly RentChange from 2021 152,000 0.00%

For those renting affordable houses in Abu Dhabi, Mohammed Bin Zayed City (MBZ City) emerged as the top choice:

• The asking rents for 3-bed villas in Mohammed Bin Zayed City decreased by 7.36%, whereas 4-bed villas showed no change in their rental costs. The 5-bed villas in Mohammed Bin Zayed City became slightly more expensive by 0.65% in 2022.

• On average, 3-bed villas in Mohammed Bin Zayed City were priced at AED 93k, whereas the 4-bed houses were rented out for AED 128k. The rent for 5-bed villas in MBZ City averaged at AED 147k per annum.

Tenants also sought out affordable houses in Khalifa City A, a family-friendly area in Abu Dhabi:

• As per trends observed in 2022, the average yearly rents for 3 and 5-bed houses in Khalifa City A experienced minor appreciations of 1.22% and 3.82%, respectively. On the contrary, the average rent for 4-bed villas in Khalifa City A fell by 2.12% in 2022.

• To rent houses in Khalifa City A, tenants have paid AED 134k for 3-bed villas, AED 148k for 4-bed units and AED 169k for 5-bed houses on average.

Potential tenants looking for budget-friendly villas in Abu Dhabi also showed an inclination for Shakhbout City (Khalifa City B):

• The rental costs of villas in Shakhbout City (Khalifa City B) increased across the board. Asking rents appreciated by 4.55% for 3-bed houses, 0.81% for 4-bed units and 0.54% for 5-bed homes. 

• The average rent for 3-bed villas in Shakhbout City (Khalifa City B) was AED 115k, whereas 4 and 5-bed houses in Shakhbout City were priced at AED 133k and AED 150k, respectively.

Besides the aforementioned areas, tenants favoured the following communities to rent affordable houses in Abu Dhabi:

• Al Shamkha South
• Al Reef

Rental costs in these communities increased by up to 12%. Price declines of up to 6% were recorded for 4-bed houses in Al Shamkha South. The rents of 4 and 5-bed villas in Al Reef remained unchanged during 2022.

AL MUSHRIF IS THE MOST POPULAR AREA FOR RENTING LUXURY VILLAS IN ABU DHABI

MOST POPULAR AREAS TO RENT LUXURY VILLAS IN ABU DHABI – BAYUT 2022 ABU DHABI MARKET REPORT

POPULAR AREAS	4-BED Avg. Yearly RentChange from 2021	5-BED Avg. Yearly RentChange from 2021	6-BED Avg. Yearly RentChange from 2021
Al Mushrif	4-BED Avg. Yearly RentChange from 2021 180,000 10.97%	5-BED Avg. Yearly RentChange from 2021 204,000 4.18%	6-BED Avg. Yearly RentChange from 2021 218,000 9.95%
Al Raha Gardens	4-BED Avg. Yearly RentChange from 2021 179,000 10.37%	5-BED Avg. Yearly RentChange from 2021 221,000 0.67%	6-BED Avg. Yearly RentChange from 2021 N/A  N/A
Al Bateen	4-BED Avg. Yearly RentChange from 2021 226,000 2.03%	5-BED Avg. Yearly RentChange from 2021 214,000 7.34%	6-BED Avg. Yearly RentChange from 2021 226,000 0.00%
Yas Island	4-BED Avg. Yearly RentChange from 2021 286,000 8.74%	5-BED Avg. Yearly RentChange from 2021 299,000 -6.61%	6-BED Avg. Yearly RentChange from 2021 549,000  N/A
Al Raha Beach	4-BED Avg. Yearly RentChange from 2021 261,000 0.54%	5-BED Avg. Yearly RentChange from 2021 353,000 28.60%	6-BED Avg. Yearly RentChange from 2021 351,000  N/A
Not available due to low/no historical inventory or influx of off-plan properties

On the luxury front, Al Mushrif continued to be the most popular choice with tenants searching for upscale villas in Abu Dhabi:

• Rents for all villa types in Al Mushrif increased across the board. As per our data, the asking rents for villas in Al Mushrif increased by 10.9% for 4-bed houses, 4.18% for 5-bed homes and 9.95% for 6-bed units.

• The asking rent for villas in Al Mushrif averaged at AED 180k for 4-bed houses, AED 204k for 5-bed homes and AED 218k for 6-bed units.

Al Raha Gardens was another area that captured the interest of those looking for high-end villas in Abu Dhabi:

• During 2022, the asking rents for 4 and 5-bed villas in Al Raha Gardens appreciated by 10.4% and 0.67%, respectively.

• The rent for 4-bed villas in Al Raha Gardens averaged at AED 179k, whereas 5-bed villas in the area were priced at AED 221k.

Tenants looking for high-end villas in Abu Dhabi also focused their interest towards Al Bateen:

• The area witnessed a 2.03% and 7.34% increase in average rents for 4 and 5-bed villas. The rent for 6-bed villas in Al Bateen remained unchanged. 

• Tenants paid around AED 226k for 4-bed villas, AED 214k for 5-bed houses and AED 226k for 6-bed units in Al Bateen. The 4-bed rental villas in Al Bateen are priced as much as the 6-bed units because they’re relatively newer houses available in a limited inventory.

Aside from these areas, the following communities gained traction from tenants:

• Yas Island
• Al Raha Beach

The villas in these areas have become generally more expensive by up to 28.6%. Al Raha Beach reported the highest surge in average rental costs of 5-bed villas, which could be attributed to the properties being priced higher to tackle increasing demand in the area. 

Commenting on the trends in the capital, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said: 

“The overall stability of the capital city’s economy has continued to make it a destination of choice among property buyers interested in the region. In the last two quarters of 2022, there was a significant increase in both volume and value of sales transactions based on the data released by DARI. The value of transactions in Abu Dhabi increased by well over 60% in Q4 2022, which is a clear indication of the rising demand for real estate in the capital, and is also evident by the growing traffic of over 12M sessions on our portal over the course of the last year for listings in Abu Dhabi alone. 

With the market firmly on a growth trajectory, we can expect more need for transparency and digitisation. The government in the capital is already proactively preparing for this and has taken the first steps with the launch of DARI in February 2022. As the leading portal in the region, we will continue to provide the necessary support to all stakeholders as we move towards a more transparent, regulated ecosystem.”

That brings an end to our Abu Dhabi rental market report for 2022. If you’re interested in making long-term investments, you can learn about the current dynamics of the market with our Abu Dhabi sales market report 2022.

Alternatively, you can gain an in-depth understanding of Dubai’s rental property market via Bayut’s Dubai 2022 rental market report.

For more information and updates about the UAE real estate sector, stay tuned to MyBayut.

Disclaimer: The above report (MKTT RPT YE 2022) is based on prices for ready properties advertised on Bayut.com by real estate agencies on behalf of their clients. These prices are not representative of actual real estate transactions conducted in Abu Dhabi.