Bayut & dubizzle’s Q1 2021 Abu Dhabi rental market report: Steady recovery driving demand for rental units in the capital

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

In the first quarter of 2021, following the welcome announcements regarding remote work visa schemes, the revised citizenship law and more, the Abu Dhabi real estate market has been on a steady upward trajectory. With consumer preferences evolving as a result of the pandemic, driving greater demand for private homes, and larger more secluded units, the rental prices in Abu Dhabi have also shown a corresponding upward trend.

Our analysis of tenant preferences for the Bayut & dubizzle Abu Dhabi real estate market for Q1 2021 has revealed that well-established suburbs like Mohammed Bin Zayed City and Khalifa City A continued to attract those looking for affordable properties. Those interested in the luxury market, have been more inclined towards the communities like Al Reem Island and Al Bateen for upscale waterfront and island living. 

Bayut & dubizzle’s combined real estate market report compares the annual asking rents from Q1 2021 to Q4 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.

To understand the changes in the Abu Dhabi rental price index and gauge consumer preferences, let’s now take a detailed look at the rent trends in Abu Dhabi for Q1 2021.

KHALIFA CITY A REMAINS TOP CHOICE FOR RENTING AFFORDABLE APARTMENTS

RENTAL PRICES IN ABU DHABI FOR AFFORDABLE APARTMENTS IN POPULAR AREAS – BAYUT & DUBIZZLE Q1 REAL ESTATE MARKET REPORT

Price-conscious tenants in search of Abu Dhabi apartments for rent have shown sustained interest in the well-integrated community of Khalifa City A.

If we look at the individual average rents for apartments in Khalifa City A, the prices for studios have remained constant at AED 28k. The 1-bed apartments in Khalifa City A have averaged AED 42k following a minor reduction of 1.14% since Q4 2020, while the prices of 2-bedroom units have gone up by 2.34% to AED 62k.

Potential tenants have also been inclined towards the flats in Al Khalidiya, which remained popular thanks to its excellent location and connectivity. On average, the asking rents in Al Khalidiya have increased between 6% and 7%. Tenants can expect to pay AED 31k for studio flats, AED 55k for 1-bed units and AED 68k for 2-bed apartments in Al Khalidiya.   

The Abu Dhabi rental trends for Q1 2021 clearly indicate that tenants with a tighter budget preferred apartments in both centrally located older neighbourhoods and newer suburban districts. Besides Khalifa City A and Al Khalidiya, other communities popular for renting cheap apartments in Abu Dhabi during this quarter have been Hamdan Street, Al Muroor and Mussafah. 

AL REEM ISLAND RETAINS POPULARITY FOR LUXURY APARTMENT RENTALS IN ABU DHABI

TOP AREAS TO RENT UPSCALE APARTMENTS IN ABU DHABI – BAYUT & DUBIZZLE Q1 2021 ABU DHABI MARKET REPORT

Unsurprisingly, when it comes to luxury apartments for rent in Abu Dhabi, Al Reem Island has remained the top choice for tenants. Thanks to the impressive inventory of apartments for rent in Al Reem Island, tenants have shown sustained interest in this waterfront community.

Consumer interest on Bayut & dubizzle has also revealed that the asking rent for Al Reem flats declined overall between 1% and 3%, further increasing its appeal. The average annual rents tenants can expect to pay for 1-bed flats in Al Reem Island in Q1 2021 have gone down slightly to AED 59k from AED 61k in Q4 2020. The rents for 2-bed flats in the area have also decreased by a minor 1.82% to an average of AED 84k. The asking rents for 3-bed flats in Al Reem Island have averaged at AED 124k after a 2.7% decline from the previous quarter. 

The waterfront community of Al Raha Beach has taken the second spot in terms of popularity for luxury apartments for rent in Abu Dhabi. The annual asking rent for 1-bed flats in Al Raha Beach has increased by almost 3% to average at AED 76k. With minor declines ranging between 0.5% and 2%, the average rents for 2-bed and 3-bed units have remained competitive at AED 111k and AED 151k respectively. 

Other than Al Raha Beach and Al Reem Island, tenants in search of expensive apartments in Abu Dhabi have also turned to properties in Corniche Area, Corniche Road and the Al Bateen district. 

MOHAMMED BIN ZAYED CITY TAKES THE FIRST SPOT FOR RENTING AFFORDABLE VILLAS IN DUBAI

ABU DHABI PROPERTY RENTAL PRICES FOR AFFORDABLE VILLAS – BAYUT & DUBIZZLE Q1 REAL ESTATE MARKET REPORT

Potential tenants looking at villas for rent in Abu Dhabi on a budget have shown sustained interest in the houses in Mohammed Bin Zayed City. Even with a general increase in rentals across the board, this quiet residential suburb has remained popular for its family-friendly lifestyle and proximity to Dubai.

The villas for rent in MBZ City have also experienced minor upticks of up to 2% during Q1 2021. Interested tenants can expect to pay AED 95k for 3-bed villas in MBZ City on average, while the annual asking rent for 4 and 5-bed units have averaged at AED 130k and AED 146k respectively.

Khalifa City A has been another prominent area that attracted attention from tenants during the first quarter of 2021. For a 3-bed villa in Khalifa City A, tenants can expect to pay an average annual rent of AED 137k. The 4-bed units here have been rented out for an average of AED 153k in Q1 2021, while the 5-bed villas have been priced at AED 164k per annum on average.

Tenants in search of cheap villas in Abu Dhabi have also sought out properties in Al Reef, Shakhbout City (Khalifa City B) and Al Muroor.

AL BATEEN IS THE MOST POPULAR AREA RENTING HIGH-END VILLAS IN ABU DHABI

MOST POPULAR AREAS TO RENT LUXURY VILLAS IN ABU DHABI – BAYUT & DUBIZZLE Q1 2021 ABU DHABI MARKET REPORT

Based on our analysis of rental prices in Abu Dhabi, Al Bateen has been the top choice for tenants in search of luxury villas. Prospective tenants can choose rental villas in Al Bateen from 3, 4, 5 and 6-bed layouts.

The average asking rents for Al Bateen villas have become more competitive. The 5-bed villas in the neighbourhood have been priced at 178k on average in Q1 2021, following a decrease of 9%. The annual rents for 6-bed homes in Al Bateen have also reduced by 1.72%, averaging at AED 243k in Q1 2021. These attractive prices have also contributed to the area’s surge in popularity over the last three months.

The villas for rent in Yas Island have emerged as the second most popular option with tenants searching for luxury homes in Abu Dhabi. Thanks to the increasing appeal of large waterfront homes with an abundance of private, outdoor space, all the upscale villa units in this area have shown impressive upticks in prices. During the first quarter of 2021, the 4-bed villas for rent in Yas Island have been priced at an average of AED 261k, while the 5-bed units have averaged at AED 346k per annum. Those keen on spacious units with luxurious finishing can also find 6-bed homes on Yas Island, which have averaged at AED 492k in Q1 2021. 

Tenants looking for luxury villas for rent in Abu Dhabi have also turned to established waterfront communities like Saadiyat Island and Al Raha Gardens.

Commenting on the trends, Haider Ali Khan the CEO of Bayut & dubizzle and the Head of EMPG MENA, said:

“Abu Dhabi’s real estate market has really gone from strength to strength in the last few years, especially since freehold ownership was opened up in 2019. There is an excellent inventory of waterfront, fully-integrated communities with malls, parks, schools and other amenities in the vicinity, making the capital a good choice for those who want to purchase a family-friendly home that they can either live in or gain returns from. The appeal of Abu Dhabi as a safe destination has only grown in the last year, thanks to the emirate’s proactive measures to contain the pandemic and safeguard residents.”

That concludes the Bayut & dubizzle analysis of rental prices in the Abu Dhabi real estate market for Q1 2021. Even with the uptick in property prices this year so far, the real estate market remains largely buyer-friendly, making this a good time to invest in property. Our Abu Dhabi Sale Report for Q1 2021 will also help you discover the most popular areas to purchase affordable and luxury properties in the capital.

Potential tenants exploring housing options in Dubai can also consider the best areas for their budget based on our Dubai Rental Market Report for Q1 2021. You can also take a look at the Bayut & dubizzle Dubai Property Market Sale Report for Q1 2021 to learn about the areas that will earn you optimal returns on your real estate investments.

Our comprehensive quarterly reports on the Sharjah and Ajman real estate markets will be out soon. So stay tuned!

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.