Abu Dhabi Rentals Report for the first half of 2022

In 2020 and 2021, Abu Dhabi was rated the most liveable destination in the Middle East. The city emerged as a new favourite among homebuyers and tenants. At the moment, the rental market in the UAE capital is advantageous for those looking to lease a home. Prices have decreased across some of the city’s most coveted neighbourhoods. Based on recent trends, larger properties, with access to premium communal amenities, are still in strong demand, which has resulted in more competitive pricing from landlords. This article will guide you through the top-performing areas for luxury and affordable rental units in H1 2022, so you can learn more about price fluctuations and average costs.

According to Bayut and dubizzle, in the first half of the current year, rental costs for budget-friendly apartments and villas decreased by 13% in certain neighbourhoods. At the same time, popular upscale areas registered price dips of up to 11%. In particular, Khalifa City A and Mohammed Bin Zayed City were among the top choices for those opting to rent an affordable home, and the waterfront areas of Al Mushrif and Al Reem Island were in-demand for luxury units.

Note! Check out this article to learn more about the best areas in Abu Dhabi for studio apartments for rent. A few of the best areas include Al Reem Island, Hamdan Street, and Khalifa City, among others.

According to Bayut & dubizzle, Khalifa City A has become the most in-demand neighbourhood to rent budget-friendly apartments in the emirate. The area’s popularity is attributed to family-oriented facilities, as well as its location near the emirate of Dubai

The average annual rental rate for studios in Khalifa City was AED 28K (USD 7.6K), which increased by 3.28% compared to H2 2021. The average annual rental rate for one-bedroom apartments was AED 42K (USD 11.4K), which increased by 0.64%, and the average annual rental rate for two-bedroom units was AED 59K (USD 16K), which decreased by 1.42%.

Al Khalidiya ranked second for having demand for affordable rental apartments in Abu Dhabi. The average annual rental rate for studios was AED 29K (USD 8K), which increased by 3.1% compared to H2 2021. The average annual rental rate for one-bedroom apartments was AED 52K (USD 14K), which increased by 3.74%, and the average annual rental rate for two-bedroom properties in Al Khalidiya was 67K (USD 18K), which increased by 2.57%.

The most popular areas for affordable apartments include Al Muroor, Hamdan Street, and Tourist Club Area (TCA)

In terms of affordable villas, Mohammed Bin Zayed City was the most popular neighbourhood for rental units. The area registered impressive fluctuations. The average annual rental rate for three-bedroom villas was AED 86K (USD 11.4K), which decreased by 10.37% compared to H2 2021, and the average annual rental rate for five-bedroom villas in Mohammed Bin Zayed City was AED 147K (USD 40K), which increased by 1.51%

Khalifa City A was the second most popular area for affordable villas in Abu Dhabi. The average annual rental rate for three-bedroom villas was AED 140K (USD 38K), which increased by 7.15% compared to H2 2021. The average annual rental rate for four-bedroom villas was AED 146K (USD 39.7K), which had slightly decreased by 1%. Those opting for larger properties will be keen to learn that five-bedroom villas had an average annual rental rate of AED 163K (USD 44K), which had a modest increase of 0.43%.

Other popular areas for affordable villa rentals include Shakhbout City (Khalifa City B), Al Reef, and Al Shamkha South.

Al Reem Island was the most popular neighbourhood for upscale apartment rentals in Abu Dhabi, which is not surprising since the demand for luxury waterfront properties is on the rise in the UAE. The average annual rental rate for one-bedroom apartments on Al Reem Island was AED 59K (USD 16K), which had a surge of 3.55% compared to H2 2021. The average annual rental rate for two-bedroom apartments was AED 87K (USD 23.6K), which increased by 1.95%, and the average annual rental rate for three-bedroom apartments was AED 87K (USD 23.6K), which increased by 1.7%.

NB! Al Reem Island saw the launch of Reem Hills in May 2022. The community consists of apartments, villas, and townhouses and was built on a man-made hill.

Al Raha Beach is another top destination for luxury apartments in Abu Dhabi. The average annual rental rate for one-bedroom apartments was AED 70K (USD 19K), which decreased by 9.39% compared to H2 2021. The average annual rental rate for two-bedroom apartments was AED 105K (USD 28.5K), which decreased by 6.82%, and the average annual rental rate for three-bedroom apartments was AED 165K (USD 45K), which decrease by 1.44%

Corniche Area was the third-highest choice for those looking for luxury flats in the UAE capital. The average annual rental rate for apartments in the area significantly decreased compared to H2 2021, and some developments, such as Al Jowhara Tower, Meera Time Towers, and Nation Towers, had a decrease of 11%. The average annual rental rate for a one-bedroom apartment was AED 70K (USD 19K).

In addition to the areas mentioned above, prospective tenants opted for Yas Island and Corniche Road for renting luxury apartments.

Al Mushrif was the most popular destination for luxury villa rentals due to its excellent transport connectivity and a high number of local schools, nurseries, and grocery stores. The average annual rental rate for four-bedroom rental houses was AED 175K (USD 47.6K), which decreased by 4.13% compared to H2 2021, and the average annual rental rate for five-bedroom rental houses was AED 195K (USD 53K), which decreased by 4.19%. When it comes to five-bedroom villas, the annual rental rate was AED 212K (USD 57.7K), which increased by 3.9%.

Al Bateen is a waterfront neighbourhood that offers a collection of upscale four- to six-bedroom villas that are available to rent. The average annual rental rate for four-bedroom villas was AED 230K (USD 62.6K), which increased by 4.07% compared to H2 2021. Four-bedroom villas in Al Bateen are quite new and are available in limited quantities. Their rental costs have been increasing to match the demand for newer residences in the neighbourhood.

The average annual rental rate for luxury five-bedroom homes in Al Bateen was AED 216K (USD 58.8K), which dropped by 3.5% compared to H2 2021, and six-bedroom units recorded an impressive price surge of 8.31%. As a result, the average price for six-bedroom villas was AED 244K (USD 66.4K).

A few other popular areas for high-end villas include Yas Island, Al Raha Gardens, and Saadiyat Island.

Note: Saadiyat Island is a lucrative option for real estate investments since it is home to eight unique museums designed by Pritzker Prize winners. Residents of this freehold area also have easy access to a golf course and white sand beaches.

Specialised brokers at Metropolitan Capital Real Estate can provide their full assistance during rental/purchase transactions of any complexity. Thanks to our excellent network, our brokers have access to properties that might not be advertised online since they work directly with their contacts. If you are interested in renting a property in Abu Dhabi, our agents can quickly find an ideal option based on your personal preferences. Our team will handle communication with potential landlords and arrange viewings, as well as assist you during the contract conclusion to clarify any unresolved issues with the landlord. This way, you save time and effort, and we can help to prevent any potential risks during the leasing period.