UAE: The Most Budget-friendly Neighbourhoods in Abu Dhabi, with Rental Rates Beginning at Dh23,000

Prices for budget-friendly apartments in popular areas have increased by up to eight percent compared to the second half of 2023

The residential rental market in Abu Dhabi is heating up this summer, with significant increases in prices for both affordable and luxury apartments and villas observed during the first six months of this year compared to the latter half of 2023.

According to a property portal’s analysis report, heightened demand has driven double-digit growth in rental prices for apartments in popular luxury neighborhoods such as Saadiyat Island and Al Raha Beach, while prices for affordable flats in expat-centric areas like Tourist Club Area and Al Muroor have also risen.

Fibha Ahmed, Vice President of Property Sales at Bayut & dubizzle, told Khaleej Times, “Analyzing the property advertising trends in H1 2024 for Abu Dhabi’s rental market, it’s evident that demand is strong, with most areas seeing price increases.”

“The market is definitely favorable to landlords, with the luxury segment experiencing the most significant hikes—apartment rents have risen over 20 percent and villa rents approximately 12 percent,” she added.

Bayut’s report highlights Khalifa City and Al Khalidiyah as popular choices for affordable apartment rentals, while Mohammed Bin Zayed City and Khalifa City have become top searched areas for renting affordable villas.

Fibha noted, “Mohammed Bin Zayed City and Khalifa City are now focal points for tenants looking for budget-friendly homes, while Yas Island and Al Raha Gardens are preferred for luxury residences. In the affordable apartment segment, Khalifa City and Al Khalidiyah attracted the most interest, whereas Al Reem Island and Al Raha Beach were top choices for higher-end apartments.”

Affordable Apartments

Rental prices for affordable apartments in popular areas have increased by up to 8 percent compared to the second half of 2023.

Here are the average yearly rents and price increases for a studio: Al Muroor (Dh32,000, up 7.42 percent), Khalifa City (Dh30,000, up 3.8 percent), Al Khalidiyah (Dh29,000, up 3.2 percent), and Tourist Club Area (Dh23,000, up 1.21 percent).

Rates for one-bedroom and two-bedroom flats have also risen by up to 8 percent in these areas. The rents and percentage increases are: Khalifa City (Dh44,000, up 4.97 percent and Dh69,000, up 8.78 percent), Al Khalidiyah (Dh41,000, up 3 percent and Dh54,000, up 4.61 percent), and Al Muroor (Dh56,000, up 4.23 percent and Dh71,000, up 8.46 percent). No changes were noted in the Tourist Club Area, where one-bedroom flats remained at Dh34,000 and two-bedroom flats at Dh47,000.

Affordable Villas

Average yearly rents for affordable villas have increased by over 3 percent in top areas, particularly for three- and five-bedroom units, although rents for four-bedroom villas have decreased in some areas.

Changes in rents for three-bedroom villas include Al Reef (Dh108,000, up 3.88 percent), Mohammed Bin Zayed City (Dh104,000, up 3.65 percent), Khalifa City (Dh161,000, up 3.27 percent), while Shakhbout City (Dh117,000) remained unchanged. Prices for five-bedroom villas ranged from Dh150,000 to Dh174,000 in these areas.

Conversely, four-bedroom villa rents increased by 6.49 percent in Khalifa City to Dh167,000, but decreased by 1.07 percent to Dh134,000 in Shakhbout City and by 0.6 percent to Dh136,000 in Al Reef.

Luxury Apartments

The demand for one-bedroom luxury flats has led to substantial rent increases in Saadiyat Island (Dh97,000, up 20.2 percent), Al Raha Beach (Dh70,000, up 11.2 percent), and Yas Island (Dh71,000, up 9.21 percent). The least expensive one-bedroom in the luxury segment is on Al Reem Island (Dh68,000, up 9.13 percent). Price changes for two-bedroom and three-bedroom flats in these areas were less significant. The priciest two-bedroom is in Saadiyat Island, unchanged at Dh155,000, while a three-bedroom costs Dh224,000, up 1.99 percent compared to the second half of last year. In Al Raha Beach, a two-bedroom is priced at Dh110,000, up 10.6 percent, and in Reem Island, Dh97,000, up 6.66 percent.

Luxury Villas

Among top areas for renting luxury villas, four-bedroom rents decreased by 6.77 percent to Dh317,000 on Yas Island, but increased by 12 percent to Dh259,000 in Al Bateen. Other areas, such as Al Raha Gardens (Dh171,000, up 1.47 percent) and Al Mushrif (Dh161,000, up 0.16 percent), saw minimal activity. Rents for five-bedroom high-end villas rose by 8.2 percent to Dh224,000 in Al Bateen, 4.69 percent to Dh360,000 on Yas Island, 2.59 percent to Dh234,000 in Al Raha Gardens, and fell by 0.77 percent to Dh198,000 in Al Mushrif.