ABU DHABI // Abu Dhabi rents are likely to fall further in the coming months as another wave of new housing comes on to the market.
Average rents in the capital fell by 6 per cent in the three months to September and by 16 per cent compared with the same period a year ago, the estate agency CBRE says.
CBRE estimates rents are 63 per cent down on the market peak three years ago. And it predicts they will fall even further over the coming months as new projects, such as World Trade Centre Residences at Central Market, are completed.
The market is becoming increasingly fragmented, says CBRE, with some tenants negotiating rents down by between 3 and 9 per cent in the third quarter, while other rents have been static.
“At this point in the development cycle we see no immediate end to this trend with better quality inventory entering the market, adding pressure to ageing and/or inferior units,” said Matthew Green, the head of research and consultancy for CBRE in the Middle East.
“As the market awaits further delivery of high-end offers we may expect some gradual softening of rents as competition increases. This will provide a good indication of the sustainability of the luxury market, which has historically been an undersupplied segment of the housing inventory in Abu Dhabi.”
But the capital is still more expensive than Dubai, said CBRE.
It found the average annual rent for a studio in Dubai stood at slightly less than Dh40,000 (US$10,889), compared with Dh45,000 for a similar property on Abu Dhabi island.
Villas were slightly less affected by the drop in rents, with quarterly declines typically ranging from 2 to 5 per cent. The agent expects villa rents to continue to slide over the coming year as new projects such as Emirati Housing Community developments at Watani, Al Falah and Yas Island come to market.
Housing supply for poorly paid employees remained "limited".
The requirement for government employees to live in the emirate is likely to lift demand for cheaper developments in Abu Dhabi, said CBRE.
Average offices rents in the emirate fell by 2 per cent compared with the previous quarter and are predicted to fall further in the next six months as more stock comes on stream.
But CBRE added things were looking up for the sector with the rate of rental decline slowing in the third quarter to its lowest level since the start of the property slump.
It reported more inquiries and a rise in activity during the quarter.
Prime office rents in Abu Dhabi were flat at Dh1,600 to Dh1,900 a square metre a year.
“Although the worst effects of the downturn appear to be over, there is still obvious pressures on landlords to maintain competitiveness,” said Mr Green.
lbarnard@thenational.ae
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Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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Dubai Hurricanes 24-12 Abu Dhabi Harlequins
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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The specs: 2019 BMW i8 Roadster
Price, base: Dh708,750
Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery
Transmission: Six-speed automatic
Power: 374hp (total)
Torque: 570Nm (total)
Fuel economy, combined: 2.0L / 100km
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About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
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