Bayut & dubizzle’s Abu Dhabi annual rental market report for H1 2021

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

As we take a look at the trends for property prices based on consumer interest on Bayut & dubizzle in Abu Dhabi over the course of the last six months, it is clear that demand has surged for family-friendly villa communities, with prices appreciating across the board for both the luxury and affordable segment. Rental flats in the capital have conversely become more competitively priced, perhaps as a result of landlords trying to appeal to tenants by keeping rental prices reasonable.

When it comes to the most-searched-for localities in the capital, tenants have preferred a mix of suburban and centrally located districts like Khalifa City A and Al Khalidiya for affordable properties. Those interested in luxury housing have concentrated their searches on upscale waterfront and island communities such as Al Bateen and Al Reem Island.

• Apartments for rent in Abu Dhabi have become more affordable as per consumer trends on Bayut & dubizzle during the last six months. Price changes have, however, been modest ranging between 1% and 8% in both affordable and luxury segments.
• On the contrary, the affordable rental homes in the capital have become up to 13% more expensive, whereas the prices for luxury villas have gone up by up to 22%.

For a comprehensive understanding of the changes in the Abu Dhabi rental price index and tenant preferences for this report, we have compared the H1 2021 rental prices in Abu Dhabi listed on Bayut & dubizzle (excluding room share) to those observed in H2 2020.

Bayut & dubizzle’s combined annual report compares the annual asking rents from H1 2021 to H2 2020, 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.

Now let’s take a detailed look at the rent trends in Abu Dhabi for H1 2021.

KHALIFA CITY A HOLDS CONSUMER INTEREST FOR RENTING AFFORDABLE APARTMENTS

RENTAL PRICES IN ABU DHABI FOR AFFORDABLE APARTMENTS IN POPULAR AREAS

Tenants in search of apartments for rent in Abu Dhabi in the affordable category have focused their searches on Khalifa City A. The rental prices for studio flats in Khalifa City A have averaged at AED 27k after a 2.6% decline from H2 2020. The rents for 1 and 2-bed flats in the neighbourhood have averaged at AED 42k and AED 63k respectively. While the rents for 2-bed units have increased by 7.9%, the prices for 1-bed rental flats in Khalifa City A have remained constant.  

Potential tenants searching for affordable flats for rent in Abu Dhabi have also shown an inclination towards the centrally-located Al Khalidiya district. The asking rents for flats in Al Khalidiya have remained constant, with a minor increase in the price for rental studios. On average, tenants can expect to part with AED 30k for studios, AED 55k for 1-bed units and AED 68k for 2-bed flats in Al Khalidiya.

The H1 2021 Abu Dhabi rental trends have also revealed a steady demand for older, well-established neighbourhoods like Hamdan Street and  Al Muroor. The reasonably priced apartments in the Mussafah suburb have also attracted tenant interest over the past six months.

AL RAYYANA IS MOST POPULAR FOR RENTING APARTMENTS IN KHALIFA CITY A

Prospective tenants looking for apartments for rent in Khalifa City A have mainly concentrated their search in Al Rayyana. This residential project in Khalifa City A comprises of well-appointed 1, 2 and 3-bed apartments.

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

TOP AREAS TO RENT UPSCALE APARTMENTS IN ABU DHABI

For luxury apartment rentals in Abu Dhabi, Al Reem Island has retained its spot as the most sought-after choice for tenants. The lavish collection of flats for rent in Al Reem Island, paired with the premium amenities and proximity to popular leisure districts, makes the island an ideal option for most tenants. 

Based on the combined consumer interest observed on Bayut & dubizzle, the asking rent for flats in Al Reem Island have decreased across the board between 1% and 3%. The asking rent for Al Reem Island studio flats has averaged at AED 59k following a 3.1% decrease. The 2 and 3-bed units have rents averaging at AED 83k and AED 126k after minor declines of 2.1% and 1.7%.

Al Raha Beach has emerged as the second most popular area among tenants looking for expensive apartments in the capital. With minor fluctuations in prices, the luxurious flats in Al Raha Beach have continued to attract tenants in the first six months of 2021. Renters can expect to pay AED 77k for studio flats, AED 111k for 1-bed and AED 151k for 2-bed apartments in Al Raha Beach. 

Besides Al Reem Island and Al Raha Beach, tenants have also searched for upscale apartments in Corniche Area, Corniche Road and Saadiyat Island.

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

Those looking for luxury apartment rentals in Al Reem Island have mostly focused their search on Shams Abu Dhabi. The apartments for rent in Shams Abu Dhabi have annual asking rents listed between AED 42k and AED 240k. The area is known for its luxury flats that come in studio, 1, 2, 3 and 4-bed configurations.

Other areas in Al Reem Island that have also been highly searched for include Marina Square, Shams Gate District, City of Lights, and Najmat Abu Dhabi.

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

ABU DHABI PROPERTY RENTAL PRICES FOR AFFORDABLE VILLAS

When it comes to villas for rent in Abu Dhabi in the affordable category, there has been a steady demand for homes in Mohammed Bin Zayed City. A quiet suburban lifestyle and proximity to Dubai, paired with affordable housing options have been the deciding factors behind the area’s continued popularity among tenants.

The average rent for houses in MBZ City has experienced modest fluctuations of up to 4% during H1 2021. Tenants interested in the affordable villas in Mohammed Bin Zayed City can expect to pay an average of AED 92k for 3-bed villas in MBZ City. The 4 and 5-bed units are priced at an average of AED 129k and AED 146k respectively.

The second most popular option for tenants looking at affordable villas in Abu Dhabi has been Khalifa City A. This well-established suburb has offered interested residents 3-bed villas for an average annual rent of AED 135k. The 4-bed units for rent have been priced at AED 150k, while the 5-bed villas have been rented out for AED 162k on average.

Renters looking for cheap villas for rent in Abu Dhabi have also shown inclination towards the available properties in Al Reef, Shakhbout City (Khalifa City B) and Al Shamkha.

ZONE 17 IS THE FAVOURITE FOR RENTING VILLAS IN MOHAMMED BIN ZAYED CITY

Within Mohammed Bin Zayed City, tenants have mostly preferred renting villas in MBZ City Zone 17.

The villas for rent in MBZ City Zone 17 have a starting price of AED 80k. Other areas in MBZ City that tenants have shown interest in, include Mohamed Bin Zayed Centre, Zone 18, Zone 19 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

According to the Bayut & dubizzle analysis of rental prices in Abu Dhabi, Al Bateen has been the most searched for option by renters in search of luxury villas in the capital. Villas for rent in Al Bateen come in 3, 4, 5 and 6-bed layouts

With minimal fluctuations in average asking rents from H2 2020, the 4-bed villas in Al Bateen are being rented out for AED 226k. The 6-bed houses in the area have rents averaging at AED 238k after a 4.2% decline from H2 2020. 

You might notice that the 4-bed villas for rent in Al Bateen are almost as expensive as the 6-bed homes. The anomaly is attributable to the fact that most 4BHK homes in Al Bateen are newer properties, priced comparatively higher than the older 5 and 6-bed units.  

Another firm favourite among tenants, the villas for rent in Yas Island have continued to attract considerable interest. During H1 2021, the asking average rents for 4-bed villas in Yas Island have been AED 256k, while those for larger 5-bed units have averaged at AED 339k.

Tenants considering premium villas for rent in Abu Dhabi have also been interested in the properties in Saadiyat Island and Al Raha Gardens.

AL BATEEN VILLAS IS THE TOP AREA FOR RENTING VILLAS IN AL BATEEN

The Al Bateen Villas community has been the most popular area for renting luxury villas in Al Bateen throughout H1 2021. The area offers large 4, 5 and 6-bed houses that are ideal for bigger families. Rents for homes in Al Bateen Villas start at AED 145k per annum. 

Other Al Bateen sub-communities popular for rental villas in Abu Dhabi in the luxury segment include Al Khaleej Al Arabi Street, Al Bateen Airport, Royal M Hotel & Resort and Al Bateen Wharf.

Commenting on the prevailing real estate market trends in Abu Dhabi, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said: 

“Over the last year, Abu Dhabi has sent a strong message to the global community with the way it has handled the public health implications of the pandemic, highlighting its appeal as a well-integrated family-friendly city where you can build roots and be secure. This has also played a part in creating more demand for the residential property market and particularly family friendly villas in Abu Dhabi, both among tenants and prospective homeowners. 

The proactive containment measures and widespread vaccination drives have also enhanced the attractiveness of Abu Dhabi for investors and buyers. Coupled with this, the drive towards developing the portfolio of affordable, sustainable communities with high projected rental yields and luxurious island communities with amenities that are at par with most global investment hubs has also resulted in rising demand for properties in Abu Dhabi.”

That wraps up our analysis of rental prices in the Abu Dhabi real estate market for H1 2021. For more insights into where best to invest your money in the Abu Dhabi real estate market, take a look at our Abu Dhabi H1 2021 Sales Report. 

Tenants looking for homes in Dubai will find our Dubai Rental Market Report for H1 2021 helpful, with details of all the emirate’s popular areas, spanning from affordable to luxury. Our Dubai Property Market Sale Report for H1 2021 can also provide invaluable insight into which areas offer the best returns on real estate investments.

We will also be releasing our detailed real estate market reports for Sharjah and Ajman 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.