Bayut & dubizzle’s Abu Dhabi annual rental market report for 2020: Prices remain favourable for tenants

• Affordable Apartment Rental
• Luxury Apartment Rentals
• Affordable Villa Rentals
• Luxury Villa Rentals

After we say our goodbyes to a uniquely challenging year for the entire world, it’s time to look back and analyse the trends for property prices in the UAE. With the Covid-19 pandemic defining new norms of life and home for us, there have been significant changes in consumer behaviour which have impacted the Abu Dhabi real estate market.

To understand the changes in the Abu Dhabi rental price index and gauge consumer preferences, we have compared the 2020 rental prices in Abu Dhabi listed on Bayut & dubizzle (excluding room share) to those in 2019.

On the whole, the Abu Dhabi property rental prices during 2020 experienced an expected decline in prices, making the market more tenant-friendly. As a general trend, tenants looking for affordable properties in Abu Dhabi have mostly concentrated their search to the suburban districts like Khalifa City A and Mohammed Bin Zayed City, while those interested in luxury properties have shown an inclination towards upscale island and waterfront communities like Al Bateen and Al Reem Island.

Bayut & dubizzle’s combined annual report compares the annual asking rents from 2020 to 2019, to provide the average rental prices for apartments and villas. We have also further segregated the popular areas for rental apartments and villas into ‘Affordable’ and ‘Luxury’ to offer a more tailored view of the Abu Dhabi rental market.

Let’s now take a detailed look at the rent trends in Abu Dhabi for 2020.

KHALIFA CITY A HOLDS CONSUMER INTEREST FOR RENTING AFFORDABLE APARTMENTS

RENTAL PRICES IN ABU DHABI FOR AFFORDABLE APARTMENTS IN POPULAR AREAS

Tenants searching for Abu Dhabi apartments for rent in the affordable segment have shown a high level of interest towards Khalifa City A. This well-established suburb has experienced a general decrease in price for all apartment types, with declines ranging between 3.6% and 15.3%, making the area even more attractive to those with a tighter budget.

The rent for studios in Khalifa City A has averaged at AED 27k in 2020, a reduction of 3.6% from 2019. The 1 and 2-bedroom units have been averaging at AED 43k and AED 61k, following price declines of 8.5% and 15.3% respectively.

Prospective tenants have also shown a steady interest for apartments in Al Khalidiya. This is not surprising, given the neighbourhood’s central location and excellent connectivity to other areas in the city. The asking rents for flats in Al Khalidiya have decreased between 6% and 11%. On average, tenants can expect to pay AED 34k for studios, AED 57k for 1-bed and AED 64k for 2-bed Al Khalidiya flats.

The Abu Dhabi rental trends for 2020 have also pointed to healthy demand from tenants for both newer suburban areas and centrally located older districts. Other than Al Khalidiya and Khalifa City A, tenants have also searched for affordably-priced units in Al Muroor, Hamdan Street and Mussafah.

VILLA COMPOUND IS MOST POPULAR FOR RENTING APARTMENTS IN KHALIFA CITY A

Tenants interested in the apartments for rent in Khalifa City A have mainly looked at units in the Villa Compound area. Comprising of low-rise buildings, Villa Compound offers a selection of well-appointed studios, 1 and 2-bed apartments.

Based on our analysis of rental trends in Abu Dhabi, prospective tenants have also searched for apartments in the Al Rayyana, Al Merief, Complex 16 and Al Dahre Compound within Khalifa City A.

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

TOP AREAS TO RENT UPSCALE APARTMENTS IN ABU DHABI

When it comes to finding luxury apartments for rent in Abu Dhabi, Al Reem Island has held steady as the top choice for tenants. Aside from a lavish selection of apartments for rent in Al Reem Island, the area attracts renters’ thanks to its high-end amenities and access to major commercial and leisure hubs.

As per the combined consumer interest on Bayut & dubizzle, the average rent for 1-bed flats in Al Reem Island has decreased by 4.7% to 64k. When it comes to the 2 and 3-bed flats, prices have remained fairly stable averaging at AED 86k and AED 128k respectively.

The waterfront Corniche Area has also attracted tenants in search of expensive apartments in the capital. With minor declines ranging between 1% and 2%, the apartments for rent in Corniche Area have remained attractive to tenants with rents averaging at AED 84k for 1-bed, AED 106k for 2-bed and AED 125k for 3-bed flats.

Besides Al Reem Island and the Corniche Area, renters looking for prime properties have also searched for the apartments available in Al Raha Beach, Corniche Road and Saadiyat Island.

SHAMS ABU DHABI IS THE TOP SUB-COMMUNITY FOR RENTAL APARTMENTS IN AL REEM ISLAND

Those looking for luxury apartments for rent in Al Reem Island have shown a greater inclination towards the properties in Shams Abu Dhabi. Tenants looking at apartments for rent in Shams Abu Dhabi can expect to pay anywhere between AED 42k and AED 260k as annual rent. The area features a variety of luxe flats in studio, 1, 2, 3 and 4-bed layouts.

Other areas in Al Reem Island which have been highly searched for by tenants interested in renting apartments in Abu Dhabi include Marina Square, City of Lights, Najmat Abu Dhabi and Shams Gate District.

MOHAMMED BIN ZAYED CITY RANKS FIRST FOR RENTING AFFORDABLE VILLAS IN DUBAI

ABU DHABI PROPERTY RENTAL PRICES FOR AFFORDABLE VILLAS

Those looking at villas for rent in Abu Dhabi have shown a steady demand for houses in Mohammed Bin Zayed City. Attracting the highest interest from tenants, this quiet residential district on the outskirts of Abu Dhabi is also well-connected to Dubai.

The asking rent for homes in MBZ City have experienced modest declines of up to 5% during 2020. On average, tenants can expect to pay AED 92k for 3-bed villas in MBZ City while 4 and 5-bed units are priced at an average of AED 123k and AED 143k respectively.

Khalifa City A has been another popular area among tenants looking for affordable villas in Abu Dhabi. Interested residents can easily find a 3-bed villa for an average annual rent of AED 127k. The 4-bed units for rent are priced at AED 150k and the 5-bed villas are rented out for AED 163k per annum on average.

Tenants interested in affordable villas in Abu Dhabi have also shown interest in the inventory available in Al Reef, Shakhbout City (Khalifa City B) and Al Muroor.

ZONE 15 IS THE FAVOURITE FOR RENTING VILLAS IN MOHAMMED BIN ZAYED CITY

When it comes to the most popular communities within Mohammed Bin Zayed City, tenants have shown an inclination towards the villas in MBZ City Zone 15. This centrally located, family-friendly sub-community offers proximity to schools, universities, healthcare facilities and other lifestyle amenities.

The villas for rent in MBZ City Zone 15 have a starting price of AED 145k.

Other areas in MBZ City that have garnered tenant interest include Mohammed Bin Zayed Centre, Zone 17, Zone 18 and Zone 20.

AL BATEEN TAKES THE TOP SPOT FOR HIGH-END VILLAS FOR RENT IN ABU DHABI

MOST POPULAR AREAS TO RENT LUXURY VILLAS IN ABU DHABI

Based on the Bayut & dubizzle analysis of rental prices in Abu Dhabi, Al Bateen has emerged as a clear favourite for tenants interested in luxury villas in the capital. The villas for rent in Al Bateen come in 3, 4, 5 and 6-bed configurations.

With barely any change in average asking rent from 2019, the 4-bed villas in Al Bateen are priced at AED 200k. The 5-bed houses in the area on the other hand reduced by 11%, averaging at AED 205k in 2020. The 6-bed houses in Al Bateen witnessed a 6.8% decrease in rent, averaging at 245k per annum.

It is important to note that there is negligible difference between the average asking rents for 4-bed and 5-bed villas in Al Bateen. This anomaly can be attributed to the fact that most of the 4-bed villas for rent in Al Bateen in the area are new luxury properties, whereas the 5-bed units are mostly older properties that have depreciated in value over time.

Ranking second in popularity, the villas for rent in Yas Island have also garnered considerable renter interest. During 2020, the rent for 4-bed villas in Yas Island averaged at AED 220k, while the 5-bed units in the area have averaged at AED 290k.

Those in search of luxury villas for rent in Abu Dhabi have also shown interest in other established areas such as Saadiyat Island and Al Raha Gardens.

AL KHALEEJ AL ARABI STREET IS THE TOP AREA FOR RENTING VILLAS IN AL BATEEN

Properties on Al Khaleej Al Arabi Street have garnered the most tenant interest for luxury rental villas in Abu Dhabi. Ideal for those in search of larger family homes in Abu Dhabi, villas for rent in Al Khaleej Al Arabi Street come in 4, 5 and 6-bed units.

Other sub-communities in Al Bateen popular for rental villas in Abu Dhabi include Al Bateen Villas, Al Bateen Airport, Royal M Hotel & Resort and Al Bateen Wharf.

That brings us to the end of our analysis of rental prices in the Abu Dhabi real estate market for 2020. With the real estate market across the UAE becoming increasingly buyer-friendly, this is a good time to invest in property. Take a look at our Abu Dhabi Annual Sale Report for 2020 to discover the best areas to buy luxury and affordable properties in the capital.

Tenants looking at housing options in Dubai can look at Dubai’s Rental Market Report for 2020 to find out what popular areas work best for their budget. Our Dubai Property Market Sale Report for 2020 can tell you where to put your money for better returns on your real estate investments.

Talking about the Abu Dhabi real estate market in 2020, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said: 

“Given the exceptional circumstances we encountered in 2020, it’s remarkable to see how demand has sustained and even grown in the capital. It’s not surprising that rents have become more competitive, considering how price sensitive the market is at the moment, but what is reassuring is the performance of the sales market. Price fluctuations have been extremely controlled, with some high-end areas even recording recovery over the course of the year. This is in part due to the government’s excellent efforts to contain the pandemic and support the real estate sector in Abu Dhabi. 

Similarly, at Bayut & dubizzle, we were able to quickly adapt to the circumstances and focus on how to provide value to our consumers and partners during these challenging times. It’s certainly been a defining year for us; our parent company EMPG became the region’s only homegrown tech unicorn, while our family at Bayut & dubizzle joined forces in our upgraded and extended office in d3. 

We’re optimistic about the year ahead, especially since the capital has left no stone unturned in combating the pandemic. The widespread vaccination campaign launched by the Abu Dhabi health authorities has also been critical in cementing the emirate’s appeal among residents and investors.”

We will also be releasing our comprehensive reports on the Sharjah and Ajman property markets soon. So stay tuned!

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Disclaimer: The above report is based on prices advertised on Bayut.com and dubizzle.com by real estate agencies on behalf of their clients. These prices are not representative of actual real estate transactions conducted in Abu Dhabi.