Bayut & dubizzle’s Abu Dhabi annual rental market report 2021: Competitive prices drive demand in the capital
As we bid adieu to 2021, it’s time to get an insight into how Abu Dhabi’s real estate market has fared during the last year.
As per our analysis of Abu Dhabi’s property market, 2021 has been a fairly strong year for the capital, with steady growth over the course of twelve months after a strong rebound from the early waves of the pandemic. The emirate’s strict and swift response to COVID-19, followed by the prolific administration of vaccines, has greatly contributed to the performance of Abu Dhabi’s real estate sector as well as the region’s local economy.
Our Abu Dhabi real estate market report 2021 reveals that the market has exhibited moderate price decreases in the affordable segment, with luxury rental prices having taken an uptrend.
To offer you a complete overview of trends, our report includes a list of areas that have retained and/or generated high interest from tenants searching for both affordable and luxury properties. Within the list, family-friendly suburbs such as Khalifa City A and Mohammed Bin Zayed City have emerged to be highly sought-after for renting reasonably-priced properties. In the case of upscale villas and apartments, waterfront communities such as Al Reem Island, Saadiyat Island and Al Raha Beach have been largely favoured by tenants in 2021.
To give you an in-depth insight into Abu Dhabi’s property prices for rental properties, Bayut & dubizzle’s combined yearly Abu Dhabi rental property market report compares average rental prices for villas and apartments from 2021 to 2020 (excluding room share). We have further segmented popular areas into ‘Affordable’ and ‘Luxury’ sections for a better analysis of consumer behaviour.
KHALIFA CITY A CONTINUES TO BE THE POPULAR CHOICE FOR RENTING AFFORDABLE APARTMENTS
RENTAL PROPERTY PRICES IN ABU DHABI FOR AFFORDABLE APARTMENTS IN POPULAR AREAS – BAYUT & DUBIZZLE ANNUAL REAL ESTATE MARKET REPORT
POPULAR AREAS | STUDIO Avg. Yearly RentChange from 2020 | 1-BED Avg. Yearly RentChange from 2020 | 2-BED Avg. Yearly RentChange from 2020 |
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| Khalifa City A | STUDIO Avg. Yearly RentChange from 2020
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| Al Khalidiyah | STUDIO Avg. Yearly RentChange from 2020
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| Al Muroor | STUDIO Avg. Yearly RentChange from 2020
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| Hamdan Street | STUDIO Avg. Yearly RentChange from 2020
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| Tourist Club Area (TCA) | STUDIO Avg. Yearly RentChange from 2020
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As per our Abu Dhabi rental market report 2021, Khalifa City A has taken the first spot with tenants searching for renting affordable apartments in Abu Dhabi. The area’s rising popularity can be attributed to its provision of lifestyle amenities and proximity to Dubai.
The yearly rent for studios in Khalifa City A has averaged at AED 27k in 2021, after a 2.4% decrease from 2020. The 1-bedroom for rent apartments in Khalifa City A has remained stable at AED 42k, whereas 2-bed rental flats in Khalifa City A have shown a moderate uptick of 3.4%, to average at AED 61k.
Next on our list of most popular areas for renting cheap flats in Abu Dhabi is Al Khalidiyah, preferred by locals and expats alike for its central location in the capital city.
The average rent of studios in Al Khalidiyah has remained constant at AED 29k, compared to 2020, whilst a decrease of up to 6.8% has been observed in the rents of 1-bed apartments, which are now averaging at AED 51k. Declining marginally by 0.7%, 2-bed apartments for rent in Al Khalidiyah have averaged at AED 67k annually.
Other than these areas, tenants interested in budget flats have shown an inclination towards family-friendly communities like Al Muroor, Hamdan Street and Tourist Club Area (TCA) in 2021.
AL RAYYANA IS THE MOST SOUGHT-AFTER RESIDENTIAL COMPLEX IN KHALIFA CITY A
As per our data, Al Rayyana has emerged as the most popular residential complex to rent affordable apartments in the heart of Khalifa City A. Comprising 33 apartment buildings, Al Rayyana offers as many as 1,537 flats, overlooking the iconic Abu Dhabi Golf Club. The flats for rent in Al Rayyana come in 1 to 3-bed configurations, starting at AED 68k per annum.
Besides Al Rayyana, Al Forsan Village has also attracted tenants for renting affordable apartments in Khalifa City A.
AL REEM ISLAND RETAINS POPULARITY FOR LUXURY APARTMENT RENTALS IN ABU DHABI
POPULAR AREAS TO RENT HIGH-END APARTMENTS IN ABU DHABI – BAYUT & dUBIZZLE 2021 ABU DHABI MARKET REPORT
POPULAR AREAS | 1-BED Avg. Yearly RentChange from 2020 | 2-BED Avg. Yearly RentChange from 2020 | 3-BED Avg. Yearly RentChange from 2020 |
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| Al Reem Island | 1-BED Avg. Yearly RentChange from 2020
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| Al Raha Beach | 1-BED Avg. Yearly RentChange from 2020
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| Corniche Area | 1-BED Avg. Yearly RentChange from 2020
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| Corniche Road | 1-BED Avg. Yearly RentChange from 2020
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| Saadiyat Island | 1-BED Avg. Yearly RentChange from 2020
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According to combined consumer interest on Bayut & dubizzle in 2021, the waterfront communities of Abu Dhabi have been the most-searched-for areas with upscale rental apartments in the city. Known for high-end amenities and seafront living, Al Reem Island has emerged as the most sought-after area to rent luxury flats in Abu Dhabi.
The asking prices of 1-bed and 2-bed apartments for rent in Al Reem Island have averaged at AED 58k and AED 85k, declining by 0.5% and 5% respectively. The average rent of 3-bed apartments in Al Reem Island has also decreased by 2% to AED 125k in 2021.
Another waterfront area that has also appealed to tenants is Al Raha Beach. In 2021, the neighbourhood has seen a minor appreciation of 0.5% to 1.8% in the rents of 1 and 3-bed units, with the exception of 2-bed units that have dipped slightly by 2.4% when compared to 2020. If we look at the average prices of units in the community, 1-bedroom apartments in Al Raha Beach have been priced at AED 77k, while the yearly rents of 2 and 3-bed flats have averaged at AED 113k and AED 157k respectively.
Apart from these communities, tenants have also focused on well-established, waterfront areas like Corniche Area, Corniche Road and Saadiyat Island. Amidst all these areas, Saadiyat Island has particularly shown a rise of up to 31.35% driven by a price shift subsequent to an increase in the higher-priced inventory listings from Saadiyat Cultural District.
SHAMS ABU DHABI IS THE MOST POPULAR SUB-COMMUNITY IN AL REEM ISLAND
For high-end apartments in Al Reem Island, home-seekers have shown considerable interest in Shams Abu Dhabi. Offering premium seafront living, Shams Abu Dhabi is one of the most popular areas to rent in Al Reem Island. The community offers state-of-the-art facilities such as pools, saunas and play areas for kids. The rent of apartments in Shams Abu Dhabi starts at AED 38k per annum.
Apart from Shams Abu Dhabi, areas such as Marina Square, Shams Gate District, City Of Lights and Najmat Abu Dhabi have appealed to prospective tenants in the luxury segment.
- 2 BEDS
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- 3 BATHS
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- 1560 SQFT
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- 3 BATHS
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- 1547 SQFT
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- 3 BATHS
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- 2369 SQFT
- 1 BED
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- 2 BATHS
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- 699 SQFT
- 2 BEDS
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- 3 BATHS
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- 893 SQFT
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- 3 BATHS
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- 1527 SQFT
MOHAMMED BIN ZAYED CITY IS THE MOST POPULAR FOR AFFORDABLE VILLA RENTALS IN ABU DHABI
MOST SOUGHT-AFTER AREAS TO RENT AFFORDABLE VILLAS IN ABU DHABI – BAYUT & DUBIZZLE 2021 ABU DHABI MARKET REPORT
POPULAR AREAS | 3-BED Avg. Yearly RentChange from 2020 | 4-BED Avg. Yearly RentChange from 2020 | 5-BED Avg. Yearly RentChange from 2020 |
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| Mohammed Bin Zayed City | 3-BED Avg. Yearly RentChange from 2020
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| Khalifa City A | 3-BED Avg. Yearly RentChange from 2020
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| Al Reef | 3-BED Avg. Yearly RentChange from 2020
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| Shakhbout City (Khalifa City B) | 3-BED Avg. Yearly RentChange from 2020
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| Al Muroor | 3-BED Avg. Yearly RentChange from 2020
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As per the trends observed on Bayut & dubizzle, Mohammed Bin Zayed City has continued to gain traction among those looking for affordable villas in Abu Dhabi. The fact that the area is accessible to Dubai and offers a host of lifestyle amenities make it a popular choice with tenants in the capital city.
The asking rents of 3-bedroom villas in Mohammed Bin Zayed City have averaged at AED 93k, increasing by 1.4%. The average rent of 4-bed houses has appreciated by 3% to AED 128k. Similarly, 5-bed houses for rent in Mohammed Bin Zayed City have shown a minor decrease of 0.1% to average at AED 146k.
Khalifa City A has emerged as the second most in-demand community to rent cheap houses in Abu Dhabi thanks to its family-friendly amenities and excellent connectivity.
As per Bayut & dubizzle’s combined market report, the rents in Khalifa City A have shown marginal decreases of up to 1%, with the exception of 3-bed homes that increased by 3%. The price of 3-bedroom rental villas in Khalifa City A has averaged at AED 131k, whereas the average yearly price of renting 4 and 5-bedroom houses in Khalifa City A has stayed competitive at AED 148k and AED 162k in 2021.
Apart from the aforementioned areas, tenants have shown interest in Al Reef, Shakhbout City (Khalifa City B) and Al Muroor to rent reasonably-priced houses in Abu Dhabi.
ZONE 17 IS THE MOST IN-DEMAND AREA IN MOHAMMED BIN ZAYED CITY
Those keen on renting cheap villas in Abu Dhabi have shown major inclination towards Zone 17 in Mohammed Bin Zayed City. Located on the edge of the capital city, Zone 17 offers convenient access to the city centre and keeps lifestyle amenities within easy reach. You can rent villas in Zone 17 at a yearly price starting from AED 60k.
In addition to Zone 17, tenants have shown considerable interest in sub-communities like Mohammed Bin Zayed Centre, Zone 18, Zone 19 and Zone 20 in Mohammed Bin Zayed City.
AL BATEEN IS THE MOST POPULAR AREA FOR RENTING LUXURY VILLAS IN ABU DHABI
MOST POPULAR AREAS TO RENT LUXURY VILLAS IN ABU DHABI – BAYUT & DUBIZZLE 2021 ABU DHABI MARKET REPORT
POPULAR AREAS | 4-BED Avg. Yearly RentChange from 2020 | 5-BED Avg. Yearly RentChange from 2020 | 6-BED Avg. Yearly RentChange from 2020 |
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| Al Bateen | 4-BED Avg. Yearly RentChange from 2020
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| Al Mushrif | 4-BED Avg. Yearly RentChange from 2020
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| Yas Island | 4-BED Avg. Yearly RentChange from 2020
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| Al Raha Gardens | 4-BED Avg. Yearly RentChange from 2020
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| Saadiyat Island | 4-BED Avg. Yearly RentChange from 2020
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| Not available due to low/no historical inventory or influx of off-plan properties | |||
On the luxury front, Al Bateen has turned out to be the most popular community to rent villas in Abu Dhabi. The asking rents of villas in Al Bateen have seen minor to moderate declines across the board. The average rent of 4-bedroom villas in Al Bateen has decreased by 0.6% to AED 223k, while 5 and 6-bed houses have averaged at AED 192k and AED 234k, reflecting a fall of 1% to 8.4%. Due to the popularity of the area and the limited inventory of smaller units, the average price to rent a 4-bed villa in Al Bateen is actually higher than that of a larger 5-bed unit.
Al Mushrif has made an appearance as the second most desirable neighbourhood to rent upscale villas in Abu Dhabi in 2021. The asking rents of houses in Al Mushrif have decreased by up to 2.6%. The average cost to rent 4-bed houses in Al Mushrif has been AED 162k whereas 5 and 6-bed villas in Al Mushrif have been available at an average price of AED 194k and AED 198k, respectively.
The waterfront community of Yas Island has emerged as the third most sought-after area to rent luxury villas in Abu Dhabi. The area recorded a substantial increase in the average rental cost, resulting from a price shift that could be attributed to an increased number of 5 and 6-bed units now available across West Yas and Yas Acres.
The asking rents of 4-bedroom villas in Yas Island have increased by 20.5%, averaging at AED 263k. The annual financial outlay for 5 and 6-bed houses in Yas Island has averaged at AED 322k and AED 493k, respectively.
Other communities that have garnered tenants’ attention include Al Raha Gardens and Saadiyat Island. Prices for properties in Saadiyat Island have also seen steep inclines, with the increased demand for larger homes driving the market.
AL BATEEN VILLAS IS THE TOP COMMUNITY IN AL BATEEN
Al Bateen Villas have emerged as the most attractive community to rent luxury villas in Al Bateen. This development offers an array of spacious villas in the capital city. Houses for rent in Al Bateen Villas come in multiple layouts, ranging from 4 to 6-bedroom units. Their rents start at AED 175k per annum.
- 2 BEDS
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- 3 BATHS
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- 1203 SQFT
- 5 BEDS
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- 6 BATHS
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- 2941 SQFT
Commenting on the trends in the capital, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:
“The economy as a whole in Abu Dhabi has been very positive over the course of 2021, because of various contributors. Looking at the end of year analysis by Reuters, Abu Dhabi has outshone other Middle Eastern markets when it comes to the stock market, exhibiting its best annual performance in 16 years. This is also reflected in the growing positive sentiment when it comes to property sales in the capital. Waterfront areas, family-friendly suburbs and sustainable developments have continued to be popular resulting in the cumulative traffic on Bayut & dubizzle to exceed 14 million sessions in 2021 .”
That brings an end to our Abu Dhabi rental market report for 2021. As is evident from this overview, Abu Dhabi’s property market has shown signs of steady growth driven by the government’s initiatives to bolster the real estate sector of the region. If you want to know how the investment sector of the emirate has performed during the last year, you can check out Abu’s Dhabi annual 2021 sales market report.
Meanwhile, you can find out the latest rent trends in Dubai via our annual Dubai’s rental market of 2021. We have also rolled out Dubai’s yearly sales property market report 2021 for those seeking excellent investment options in the UAE.
If you want to learn all about the seven emirates of the UAE, our guide has all the details.
Besides Abu Dhabi and Dubai, we’ll be releasing our annual market reports for Sharjah and Ajman within the next few days so stay tuned to MyBayut.
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.
