Bayut & dubizzle’s Abu Dhabi rental market report for Q3 2022

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

We’ve arrived in the last quarter of 2022 and it’s fair to say that the Abu Dhabi real estate market has continued its upward trajectory. To see how the market performed in the past three months, the Bayut & dubizzle Abu Dhabi Q3 rental property market report 2022 takes an in-depth look into the rental trends observed in the key residential areas of the capital during that time.

A quick look at the trends observed for Bayut & dubizzle’s Q3 Abu Dhabi rental market report 2022 reveals that:

• The prices remained largely stable in the affordable segment, with modest fluctuations of up to 5% for certain bed types.
• Prices for luxury rentals generally increased by up to 11%.

To give you a more tailored view of Abu Dhabi’s rental market, we have compared average rents for villas and apartments from Q3 2022 to those observed in Q2 2022 (excluding room share).

TOP NEIGHBOURHOODS FOR RENTING VILLAS AND APARTMENTS IN Q3 2022

As per the collective data for advertised properties extracted from Bayut & dubizzle, the demand for bigger homes across established communities in the Abu Dhabi real estate market remained steady during Q3 2022. This has pushed the price upwards for rental villas, in particular, within the luxury sector. With regard to the affordable sector, landlords priced their properties competitively to make them more appealing to tenants.

According to the Q3 rental market report for Abu Dhabi, tenants on a stricter budget preferred areas such as:

• Khalifa City A
• Al Khalidiyah
• Mohammed Bin Zayed City
• Al Muroor

Those intending to buy upscale properties showed an inclination towards the well-established communities of:

• Al Reem Island
• Al Raha Beach
• Al Mushrif
• Yas Island

Let’s now take a closer look at the rental trends reflected in the Abu Dhabi Q3 property market report 2022.

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 & DUBIZZLE’S Q3 2022 MARKET REPORT

POPULAR AREAS	STUDIO Avg. Yearly RentChange from Q2 2022	1-BED Avg. Yearly RentChange from Q2 2022	2-BED Avg. Yearly RentChange from Q2 2022
Khalifa City A	STUDIO Avg. Yearly RentChange from Q2 2022 28,000 0.00%	1-BED Avg. Yearly RentChange from Q2 2022 41,000 -0.90%	2-BED Avg. Yearly RentChange from Q2 2022 60,000 -2.36%
Al Khalidiyah	STUDIO Avg. Yearly RentChange from Q2 2022 30,000 0.00%	1-BED Avg. Yearly RentChange from Q2 2022 53,000 0.00%	2-BED Avg. Yearly RentChange from Q2 2022 68,000 0.00%
Al Muroor	STUDIO Avg. Yearly RentChange from Q2 2022 29,000 3.74%	1-BED Avg. Yearly RentChange from Q2 2022 40,000 0.00%	2-BED Avg. Yearly RentChange from Q2 2022 53,000 0.00%
Hamdan Street	STUDIO Avg. Yearly RentChange from Q2 2022 34,000 0.00%	1-BED Avg. Yearly RentChange from Q2 2022 43,000 -3.38%	2-BED Avg. Yearly RentChange from Q2 2022 56,000 -1.06%
Tourist Club Area (TCA)	STUDIO Avg. Yearly RentChange from Q2 2022 34,000 -2.01%	1-BED Avg. Yearly RentChange from Q2 2022 44,000 3.19%	2-BED Avg. Yearly RentChange from Q2 2022 57,000 0.00%

As per the trends observed by our data experts at Bayut & dubizzle for Q3 2022, Khalifa City A emerged as the most popular choice to rent affordable apartments in Abu Dhabi:

• The asking rents of apartments in Khalifa City A remained unchanged for studios, whereas rental prices of 1 and 2-bed units decreased by 0.90% and 2.36%, respectively. 

• On average, tenants spent AED 28k to rent studios, AED 41k for 1-bed flats and AED 60k for 2-bed rental apartments in Khalifa City A during Q3 2022.

Al Khalidiyah also retained its popularity for reasonably-priced rental apartments in Abu Dhabi:

• Rental prices for all apartment types in Al Khalidiyah remained constant. 

• The rent of studios in Al Khalidiyah averaged at AED 30k. The 1 and 2-bed flats in Al Khalidiyah were priced at AED 53k and AED 68k, on average, respectively.

Al Muroor emerged as the third-most-popular area to rent affordable apartments in the emirate:

• The rent of studios in Al Muroor increased by 3.74%, whereas the prices of 1 and 2-bed rental units in the area remained unchanged.

• The average rent of studios in Al Muroor was recorded at AED 29k, whereas 1 and 2-bed apartments in Al Muroor were priced at AED 40k and 53k, respectively.

Other areas that also appealed to budget-conscious tenants included:

• Hamdan Street
• Tourist Club Area (TCA)

Asking rents in these areas generally decreased by 1% to 4%. The 1-bed apartments in Tourist Club Area, however, became more expensive by 3.19%.

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 & DUBIZZLE Q3 2022 ABU DHABI MARKET REPORT

POPULAR AREAS	1-BED Avg. Yearly RentChange from Q2 2022	2-BED Avg. Yearly RentChange from Q2 2022	3-BED Avg. Yearly RentChange from Q2 2022
Al Reem Island	1-BED Avg. Yearly RentChange from Q2 2022 58,000 -1.25%	2-BED Avg. Yearly RentChange from Q2 2022 86,000 -0.98%	3-BED Avg. Yearly RentChange from Q2 2022 127,000 0.00%
Al Raha Beach	1-BED Avg. Yearly RentChange from Q2 2022 64,000 -3.64%	2-BED Avg. Yearly RentChange from Q2 2022 97,000 -7.16%	3-BED Avg. Yearly RentChange from Q2 2022 162,000 0.00%
Corniche Area	1-BED Avg. Yearly RentChange from Q2 2022 75,000 6.67%	2-BED Avg. Yearly RentChange from Q2 2022 101,000 3.59%	3-BED Avg. Yearly RentChange from Q2 2022 116,000 9.06%
Yas Island	1-BED Avg. Yearly RentChange from Q2 2022 60,000 -5.73%	2-BED Avg. Yearly RentChange from Q2 2022 89,000 -10.27%	3-BED Avg. Yearly RentChange from Q2 2022 124,000 2.00%
Corniche Road	1-BED Avg. Yearly RentChange from Q2 2022 88,000 5.37%	2-BED Avg. Yearly RentChange from Q2 2022 115,000 7.61%	3-BED Avg. Yearly RentChange from Q2 2022 135,000 7.97%

On the luxury front, Al Reem Island retained its standing as the most sought-after area to rent luxury apartments in Abu Dhabi:

• The average rents of 1 and 2-bed apartments in Al Reem Island declined by 1.25% and 0.98%, respectively. The rental cost of 3-bed units in Al Reem Island, however, showed no change from Q2 2022.

• On average, tenants paid AED 58k for 1-bed units, AED 86k for 2-bed flats and AED 127k for 3-bed apartments in Q3 2022.

The waterfront area of Al Raha Beach also emerged as a popular choice for tenants interested in luxury flats:

• During Q3 2022, the average rental cost of 1-bed units in Al Raha Beach decreased by 3.64%, whereas the average rent of 2-bed units in Al Raha Beach dropped by 7.16%. The rent for 3-bed apartments in the area remained unchanged.

• The cost of apartment rentals in Al Raha Beach averaged at AED 64k for 1-bed flats, AED 97k for 2-bed apartments and AED 162k for 3-bed units.

Tenants also showed a preference for Corniche Area when it comes to luxury apartments, in the third quarter of 2022:

• As per the data, the average rent for apartments in Corniche Area experienced increases of between 3% and 9%.

• 1-bed flats in Corniche Area cost around AED 75k, whereas 2 and 3-bed apartments in the area were priced at AED 101k and AED 116k on average, respectively.

Other areas that remained popular with tenants in Q3 2022 included:

• Yas Island
• Corniche Road

The asking rents for flats in these areas increased by 2% to 8%. The 1 and 2-bed units in Yas Island, however, became more affordable by 5.73% and 10.27%, respectively.

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 & DUBIZZLE Q3 2022 ABU DHABI MARKET REPORT ANALYSIS

POPULAR AREAS	3-BED Avg. Yearly RentChange from Q2 2022	4-BED Avg. Yearly RentChange from Q2 2022	5-BED Avg. Yearly RentChange from Q2 2022
Mohammed Bin Zayed City	3-BED Avg. Yearly RentChange from Q2 2022 87,000 -2.14%	4-BED Avg. Yearly RentChange from Q2 2022 130,000 -0.80%	5-BED Avg. Yearly RentChange from Q2 2022 148,000 0.00%
Khalifa City A	3-BED Avg. Yearly RentChange from Q2 2022 135,000 -3.42%	4-BED Avg. Yearly RentChange from Q2 2022 151,000 4.80%	5-BED Avg. Yearly RentChange from Q2 2022 169,000 -2.02%
Al Reef	3-BED Avg. Yearly RentChange from Q2 2022 101,000 0.00%	4-BED Avg. Yearly RentChange from Q2 2022 137,000 0.00%	5-BED Avg. Yearly RentChange from Q2 2022 152,000 0.00%
Al Muroor	3-BED Avg. Yearly RentChange from Q2 2022 108,000 -2.38%	4-BED Avg. Yearly RentChange from Q2 2022 141,000 0.00%	5-BED Avg. Yearly RentChange from Q2 2022 172,000 2.08%
Shakhbout City (Khalifa City B)	3-BED Avg. Yearly RentChange from Q2 2022 115,000 4.55%	4-BED Avg. Yearly RentChange from Q2 2022 133,000 0.72%	5-BED Avg. Yearly RentChange from Q2 2022 149,000 -2.37%

As per the data collected by Bayut & dubizzle for Q3 2022, Mohammed Bin Zayed City remained the top preference for tenants interested in budget-friendly villas in Abu Dhabi:

• The average yearly rental for 3-bed and 4-bed houses in Mohammed Bin Zayed City experienced declines of 2.14% and 0.80%, respectively. However, the cost of renting 5-bed villas in the area remained unchanged.

• On average, 3-bed villas in Mohammed Bin Zayed City were priced at AED 87k per annum. The 4 and 5-bed villas cost around AED 130k and AED 148k on average, respectively.

The family-friendly suburb of Khalifa City A also continued to be a popular choice for budget-conscious tenants in Abu Dhabi:

• During Q3 2022, the average cost of 3 and 5-bed villas in Khalifa City A experienced minor declines of 3.42% and 2.02%, respectively. The 4-bed houses in Khalifa City A became more expensive by 4.80%.

• The yearly cost of rental villas in Khalifa City A stood at AED 135k for 3-bed units, AED 151k for 4-bed houses and AED 169k for 5-bed units.

Based on our Abu Dhabi Q3 rental property market report 2022, prospective tenants also showed their interest in renting affordable houses in Al Reef during Q3 2022:

• The rental prices of villas in Al Reef remained unchanged in Q3 2022.

• The average rent of 3-bed villas in Al Reef stood at AED 101k, whereas the cost of renting 4 and 5-bed villas in Al Reef averaged at AED 137k and AED 152k, respectively.

Aside from these areas, tenants preferred the following areas in Q3 2022:

• Al Muroor
• Shakhbout City (Khalifa City B)

Average rental costs in these areas increased by up to 5%. Priced decreases of up to 3% were recorded for 3-bed houses in Al Muroor and 5-bed houses in Shakhbout City (Khalifa City B).

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 & DUBIZZLE Q3 2022 ABU DHABI MARKET REPORT

POPULAR AREAS	4-BED Avg. Yearly RentChange from Q2 2022	5-BED Avg. Yearly RentChange from Q2 2022	6-BED Avg. Yearly RentChange from Q2 2022
Al Mushrif	4-BED Avg. Yearly RentChange from Q2 2022 179,000 -0.86%	5-BED Avg. Yearly RentChange from Q2 2022 227,000 10.11%	6-BED Avg. Yearly RentChange from Q2 2022 234,000 8.22%
Yas Island	4-BED Avg. Yearly RentChange from Q2 2022 294,000 4.86%	5-BED Avg. Yearly RentChange from Q2 2022 302,000 -1.95%	6-BED Avg. Yearly RentChange from Q2 2022 548,000 -0.30%
Al Bateen	4-BED Avg. Yearly RentChange from Q2 2022 224,000 4.93%	5-BED Avg. Yearly RentChange from Q2 2022 196,000 -7.23%	6-BED Avg. Yearly RentChange from Q2 2022 223,000 -1.55%
Al Raha Gardens	4-BED Avg. Yearly RentChange from Q2 2022 188,000 1.53%	5-BED Avg. Yearly RentChange from Q2 2022 224,000 1.39%	6-BED Avg. Yearly RentChange from Q2 2022 N/A  N/A
Al Raha Beach	4-BED Avg. Yearly RentChange from Q2 2022 247,000 -3.97%	5-BED Avg. Yearly RentChange from Q2 2022 351,000 3.26%	6-BED Avg. Yearly RentChange from Q2 2022 N/A  N/A
Not available due to low/no historical inventory or influx of off-plan properties

The Bayut & dubizzle’s Abu Dhabi Q3 rental property market report 2022 showed that tenants preferred Al Mushrif for renting luxury villas in the emirate: 

• The average rent of 4-bed houses in Al Mushrif decreased by 0.86%. However, the rents of 5 and 6-bed villas in Al Mushrif showed increases of 10.11% and 8.22%, respectively.

• The asking rent of 4-bed villas in Al Mushrif stood at AED 179k, whereas the rents for 5 and 6-bed houses averaged at AED 227k and AED 234k, respectively.

The seafront community of Yas Island also garnered considerable tenant interest for luxury villas in Q3 2022:

• The average yearly rent of houses in Yas Island decreased by 1.95% and 0.30% for 5 and 6-bed villas, respectively. However, the rent of 4-bed houses in Yas Island became more expensive by 4.86%.

• Tenants considering moving to houses for rent in Yas Island can expect to pay AED 294k for 4-bed houses, AED 302k for 5-bed units and AED 548k for 6-bed villas.

Tenants looking for high-end rental villas also expressed their interest in Al Bateen:

• The average asking rents of 5 and 6-bed houses in Al Bateen declined by 7.23% and 1.55%, respectively. The rents of 4-bed villas in Al Bateen increased by 4.93%. 

• Tenants were looking at paying around AED 224k for a 4-bed villa, AED 196k for a 5-bed home and AED 223k for 6-bed houses in Al Bateen. The 4-bed units are priced higher than others owing to their limited inventory and newer build quality.

That brings an end to our Abu Dhabi rental real estate market report for Q3 2022. If you want to know more about the current standing of the capital’s real estate market, we recommend taking a look at Bayut & dubizzle’s Q3 Abu Dhabi sales market report 2022.

Those who want to gain an in-depth insight into rent trends in Dubai can view the Q3 2022 Dubai rental market report.

We will be releasing our quarterly reports for Sharjah and Ajman shortly, so stay tuned to MyBayut. 

Disclaimer: The above report (MKT RPT Q3 2022) is based on prices for ready properties 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.