Bayut’s Abu Dhabi Rental Market Report for 2023
- Top Neighbourhoods
- Affordable Apartment Rentals
- Luxury Apartment Rentals
- Affordable Villa Rentals
- Luxury Villa Rentals
With 2023 now officially in the books, it’s the perfect time to review the last year for Abu Dhabi’s booming real estate market. To provide valuable insights into consumer search preferences and trends throughout the market, Bayut has compiled its annual Abu Dhabi rental market report for 2023.
The capital’s rental market has grown substantially in recent years, showcasing an increasing demand for residential properties. With a strong need for housing options, it becomes crucial to understand the dynamics of the Abu Dhabi real estate market and the factors influencing rental prices.
A quick look at Bayut’s Abu Dhabi annual rental market report for 2023 reveals that:
- An increasing demand for luxury apartments has pushed rental property prices upwards by up to 14%, mainly in island communities. On the flip side, rental rates for affordable apartments in the emirate have remained tenant-friendly, decreasing by up to 3% in some areas and staying consistent in others.
- Villa rentals experienced increases in both the affordable and luxury sectors. However, upscale villas in island destinations recorded significant price hikes of up to 23%. compared to a 4.91% appreciation in the affordable sector.
To give you a detailed view of the Abu Dhabi rental market, we have compared the average advertised rents for villas and apartments from 2023 to those observed in 2022 (excluding room share).
RENTAL TRENDS IN ABU DHABI: TOP NEIGHBOURHOODS FOR RENTING VILLAS AND APARTMENTS IN 2023
The Abu Dhabi rental market experienced growth and stability in 2023. In recent years, there has been a significant increase in demand for both upscale and budget-friendly residential properties. This surge can be attributed to several factors, including the city’s economic development, population growth and the changing preferences of expatriate residents.
The latest Abu Dhabi real estate market report data from Bayut suggests that the property market has shown increased demand for larger luxury homes in key communities during 2023. In response to this trend, landlords have raised rental prices, particularly within the luxury sector, to capitalise on the demand. However, renters can still find affordable, competitive and attractive options.
As per Bayut’s Abu Dhabi annual rental market report for 2023, budget-conscious tenants had a strong liking for districts such as:
- Khalifa City
- Al Khalidiyah
- Mohammed Bin Zayed City
- Al Reef
One notable trend in this Abu Dhabi property market report for 2023 is the preference for luxury properties. Tenants are increasingly looking for upscale apartments and villas that offer a range of facilities, such as swimming pools, gyms and 24-hour security. Those interested in extravagant properties preferred coveted destinations like:
- Al Reem Island
- Al Raha Beach
- Yas Island
- Al Raha Gardens
Let’s further investigate the rental trends observed in the Bayut Abu Dhabi 2023 property market report.
KHALIFA CITY 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 2023 MARKET REPORT
POPULAR AREAS | STUDIO Avg. Yearly RentChange from 2022 | 1-BED Avg. Yearly RentChange from 2022 | 2-BED Avg. Yearly RentChange from 2022 |
|---|---|---|---|
| Khalifa City | STUDIO Avg. Yearly RentChange from 2022
| 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
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| Al Khalidiyah | STUDIO Avg. Yearly RentChange from 2022
| 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
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| Al Muroor | STUDIO Avg. Yearly RentChange from 2022
| 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
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| Hamdan Street | STUDIO Avg. Yearly RentChange from 2022
| 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
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| Al Shamkha | STUDIO Avg. Yearly RentChange from 2022
| 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
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Khalifa City remained the most popular area for reasonably-priced rental apartments based on the Abu Dhabi property market report for the 2023 analysis:
- The asking prices of studios and 1-bed rental apartments in Khalifa City reported no change. However, the average rent of 2-bed flats increased by 2.31% from 2022.
- On average, to rent apartments in Khalifa City, tenants paid AED 28k for studios, AED 42k for 1-bed units and AED 63k for 2-bed flats in Khalifa City during 2023.
Al Khalidiyah emerged as the second most popular area to rent affordable apartments in Abu Dhabi:
- Prices for Al Khalidiyah rental apartments revealed moderate changes. The average rent for studios in Al Khalidiyah increased by 1.77%, and the asking rent for 1-bed flats decreased by 0.26%. The average rent for 2-bed apartments recorded a 3.02% dip in 2023.
- The rental costs for studios averaged AED 30k in 2023. The 1 and 2-bed flats for rent in Al Khalidiyah were priced at AED 51k and AED 65k, respectively.
Al Muroor was another favourite for finding affordable apartments in Abu Dhabi:
- Al Muroor apartments for rent, particularly studios and 1-bed apartments, saw price increases of 3.60% and 1.23%, respectively. However, the average rent for 2-bed flats remained unchanged in 2023.
- Average rents recorded for studio, 1 and 2-bedroom rental flats in Al Muroor were AED 31k, AED 41k and AED 53k, respectively.
As per Bayut’s Abu Dhabi property market report for 2023, other popular areas for budget-friendly housing options included:
- Hamdan Street
- Al Shamkha
Average prices for apartments for rent in Al Shamkha generally decreased by 1.62% to 2.89%. Studios and 2-bed flats in Hamdan Street reported no fluctuations in rental prices. However, the asking rent for 1-bed apartments in Hamdan Street increased by 3.67%.
AL REEM ISLAND LEADS THE POPULARITY AMONG LUXURY APARTMENT RENTALS IN ABU DHABI
POPULAR AREAS TO RENT LUXURY APARTMENTS IN ABU DHABI – ABU DHABI ANNUAL RENTAL MARKET REPORT FOR 2023
POPULAR AREAS | 1-BED Avg. Yearly RentChange from 2022 | 2-BED Avg. Yearly RentChange from 2022 | 3-BED Avg. Yearly RentChange from 2022 |
|---|---|---|---|
| Al Reem Island | 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
| 3-BED Avg. Yearly RentChange from 2022
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| Al Raha Beach | 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
| 3-BED Avg. Yearly RentChange from 2022
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| Corniche Area | 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
| 3-BED Avg. Yearly RentChange from 2022
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| Yas Island | 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
| 3-BED Avg. Yearly RentChange from 2022
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| Saadiyat Island | 1-BED Avg. Yearly RentChange from 2022
| 2-BED Avg. Yearly RentChange from 2022
| 3-BED Avg. Yearly RentChange from 2022
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On the luxury front, tenants largely preferred Al Reem Island for renting upscale apartments in Abu Dhabi:
- Apartments for rent in Al Reem Island, including 1 to 3-bed units, revealed price increases of up to 2.42% in 2023.
- Asking rents averaged at AED 60k for 1-bed flats, AED 90k for 2-bed apartments and AED 130k for 3-bed units.
Al Raha Beach remained a firm favourite for upscale apartments as per the Abu Dhabi annual rental market report for 2023:
- In 2023, the rent for 1-bed apartments in Al Raha Beach decreased by 5.02%. The rental cost of 2-bed flats in Al Raha Beach showed a decline of 3.54%. The 3-bed flats witnessed a similar 3.69% dip in average rents.
- On average, tenants spent AED 62k for 1-bed apartments, AED 99k for 2-bed flats and AED 159k for 3-bed flats for rent in Al Raha Beach.
Corniche Area continued to be another popular district amongst those seeking to rent luxury apartments in Abu Dhabi:
- Prices for larger rental apartments in the Corniche Area, i.e. 2 and 3-bedroom units, experienced increases of 4.72% and 7.39%, respectively. Asking rents for 1-bedroom flats remained unchanged.
- On average, 1-bed rental apartments in the Corniche Area were priced at AED 76k. The area’s 2 and 3-bed flats were available for an average of AED 108k and AED 128k, respectively.
Those interested in renting luxury apartments in Abu Dhabi also showed a preference towards:
- Yas Island
- Saadiyat Island
The asking rents for flats in Yas Island saw a noticeable increase of 13.3% for 2-bed apartments, with landlords listing their properties at higher prices to capitalise on the growing demand. The 1-bed flats became 7.36% more expensive, compared to 2022 and 3-bedroom apartments on Yas Island showed a minor 3.37% increase in rental prices during 2023.
Like Yas Island, luxury flats for rent in Saadiyat Island saw moderate to minor price fluctuations according to Bayut’s Abu Dhabi annual rental market report for 2023.
- 3 BEDS
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- 5 BATHS
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- 2163 SQFT
- 2 BEDS
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- 3 BATHS
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- 1717 SQFT
- 2 BEDS
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- 3 BATHS
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- 1585 SQFT
- 1 BED
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- 2 BATHS
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- 896 SQFT
- 1 BED
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- 2 BATHS
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- 943 SQFT
- 2 BEDS
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- 2 BATHS
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- 1025 SQFT
MOHAMMED BIN ZAYED CITY IS THE MOST POPULAR AREA FOR RENTING AFFORDABLE VILLAS IN ABU DHABI
TOP AREAS TO RENT AFFORDABLE VILLAS IN ABU DHABI – BAYUT 2023 ABU DHABI MARKET REPORT ANALYSIS
POPULAR AREAS | 3-BED Avg. Yearly RentChange from 2022 | 4-BED Avg. Yearly RentChange from 2022 | 5-BED Avg. Yearly RentChange from 2022 |
|---|---|---|---|
| Mohammed Bin Zayed City | 3-BED Avg. Yearly RentChange from 2022
| 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
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| Khalifa City | 3-BED Avg. Yearly RentChange from 2022
| 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
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| Madinat Al Riyadh | 3-BED Avg. Yearly RentChange from 2022
| 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
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| Al Reef | 3-BED Avg. Yearly RentChange from 2022
| 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
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| Shakhbout City | 3-BED Avg. Yearly RentChange from 2022
| 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
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For those renting affordable houses in Abu Dhabi, Mohammed Bin Zayed City (MBZ City) emerged as the top choice:
- Regarding villas for rent in Mohammed Bin Zayed City, prices for 3-bed houses increased by 2.11%, whereas 4-bed villas showed no change. The 5-bed villas in Mohammed Bin Zayed City became slightly more expensive by 1.31% in 2023.
- On average, 3-bed villas in Mohammed Bin Zayed City were priced at AED 96k, whereas the 4-bed houses were available for AED 129k. The rent for 5-bed villas in MBZ City averaged at AED 150k per annum.
Tenants also showed a strong inclination towards affordable villas for rent in Khalifa City, a family-friendly area in Abu Dhabi:
- The average yearly rents for 3 and 5-bed houses in Khalifa City experienced minor appreciations of 1.53% and 0.66%. The average rent for 4-bed villas in Khalifa City witnessed a moderate increase of 3.27% in 2023.
- To rent houses in Khalifa City, tenants paid AED 144k for 3-bed villas, AED 157k for 4-bed units and AED 172k for 5-bed houses.
Potential tenants in search of affordable villas in Abu Dhabi displayed a preference for Madinat Al Riyadh:
- Villas for rent in Madinat Al Riyadh witnessed price increases across the board. The most significant appreciation was observed for 4-bed villas, where annual rentals increased by 4.91%. Minor upticks of 0.72% and 0.19% were recorded for 3-bed and 5-bed homes.
- The average rent for 3-bed villas in Madinat Al Riyadh was AED 111k, whereas 4 and 5-bed houses were priced at AED 138k and AED 158k, respectively.
Besides the aforementioned areas, tenants favoured the following communities to rent affordable houses in Abu Dhabi:
Rental prices for villas in these communities largely remained unchanged, although most notably price increases of up to 2.14% were recorded for 5-bed villas for rent in Al Reef.
AL RAHA GARDENS IS THE MOST POPULAR AREA FOR RENTING LUXURY VILLAS IN ABU DHABI
MOST POPULAR AREAS TO RENT LUXURY VILLAS IN ABU DHABI – ABU DHABI ANNUAL RENTAL MARKET REPORT FOR 2023
POPULAR AREAS | 4-BED Avg. Yearly RentChange from 2022 | 5-BED Avg. Yearly RentChange from 2022 | 6-BED Avg. Yearly RentChange from 2022 |
|---|---|---|---|
| Al Raha Gardens | 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
| 6-BED Avg. Yearly RentChange from 2022
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| Yas Island | 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
| 6-BED Avg. Yearly RentChange from 2022
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| Al Mushrif | 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
| 6-BED Avg. Yearly RentChange from 2022
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| Al Bateen | 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
| 6-BED Avg. Yearly RentChange from 2022
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| Saadiyat Island | 4-BED Avg. Yearly RentChange from 2022
| 5-BED Avg. Yearly RentChange from 2022
| 6-BED Avg. Yearly RentChange from 2022
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| Not available due to low/no historical inventory or influx of off-plan properties | |||
Those seeking high-end villas in Abu Dhabi showed the most interest in Al Raha Gardens:
- During 2023, villas for rent in Al Raha Gardens showed mixed trends. Prices for 4-bed villas became 3.78% cheaper, whereas 5-bed units appreciated by 1.39%.
- The rent for 4-bed villas in Al Raha Gardens averaged at AED 168k, while 5-bed villas in the area were priced at AED 227k.
Yas Island villas for rent secured the second spot among popular areas to rent luxury houses in the UAE capital:
- The 4-bed villas on Yas Island recorded a 12.7% increase in rental prices because landlords priced their properties higher in the face of increased demand. The more spacious 5-bedroom villas experienced a 7.28% hike in rents.
On the luxury front, Al Mushrif was also a popular choice with tenants searching for upscale villas in Abu Dhabi:
- Prices for rental villas in Al Mushrif saw moderate declines. As per our data, the asking rents decreased by 5.64% for 4-bed houses and 4.37% for 6-bed units. 5-bed villas reported no changes in asking rents.
- The rent costs for villas in Al Mushrif averaged at AED 163k for 4-bed houses, AED 201k for 5-bed homes and AED 206k for 6-bed units.
In addition to the above-mentioned areas, tenants searching for luxury villa rentals showed interest in the following communities:
- Al Bateen
- Saadiyat Island
Saadiyat Island experienced a significant increase in average rental prices for villas, with the 6-bedroom units witnessing a surge of 22.2%. Such a price jump could be attributed to the ever-increasing popularity of the area with tenants. For those interested in renting villas in Saadiyat Island, 4 and 5-bedroom houses became 7.52% and 7.19% more expensive in 2023, respectively.
- 4 BEDS
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- 5 BATHS
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- 1947 SQFT
- 4 BEDS
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- 5 BATHS
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- 6771 SQFT
- 4 BEDS
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- 6 BATHS
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- 5787 SQFT
That brings an end to our Abu Dhabi rental market report for 2023. If you’re interested in long-term investments, you can learn about the current market dynamics with our Abu Dhabi 2023 annual sales market report. Alternatively, you can gain an in-depth understanding of Dubai’s rental property market via Bayut’s Dubai 2023 rental market report.
The future outlook for the Abu Dhabi rental market remains positive, with continued growth and development expected. The city’s economic diversification efforts and ongoing infrastructure projects will attract more residents and businesses, driving the demand for rental properties.
Stay tuned to MyBayut for a more in-depth analysis, where we explore rental and sales prices, popular areas, emerging trends and more across the UAE in the 2023 Annual Market Reports.
Disclaimer: The above report (MKTRPTYE2023) is based on prices for ready properties advertised on Bayut.com by real estate agencies on behalf of their clients. These prices do not represent actual real estate transactions conducted in Abu Dhabi.
