Abu Dhabi’s new rent cap expected
Abu Dhabi – Housing rents in the capital cooled slightly in the first quarter of the year, sliding to two per cent from three per cent in the fourth quarter of 2014.
Over the past year, average rental growth has been relatively consistent, ranging between two to three per cent for each of the past four quarters. This preceded an initial spike in rentals during the latter part of Q4 2013, immediately after the removal of the rent cap, said property advisory firm CBRE in its report on Abu Dhabi.
Whilst the timing is still to be confirmed, it is widely expected that a new rental matrix will be introduced in Abu Dhabi to replace the old rental cap system, it said.
Following a 12 per cent increase in residential rentals during the past year, many residents in the capital are becoming increasingly concerned over the escalating cost of living, particularly as utility rates are also on the rise, CBRE said.
Overall residential leasing demand has remained strong during the quarter, with the highest demand recorded for two-bedroom units. Rentals within this size bracket average Dh141,000 per housing unit per annum. For prime developments, the range is significantly higher at around Dh150,000-205,000 per annum. Read More