Dubai has long-since been the darling of the UAE in terms of real estate and with the prospect of the Emirate hosting the 2020 World Expo, investor interest in its property has remained buoyant.
However, the first quarter of 2015 has seen Abu Dhabi emerging with strength in the UAE, out-performing Dubai in both transaction volume and rental growth, with investment picking up significantly at the luxury end of the market.
According to UAE property portal Bayut.com , although rental values of studio apartments declined in the first quarter, there was a significant increase in rents for one and two-bedroom apartments, recording growth of 7% and 9% respectively. The portal concludes that tenants are seeking more spacious options in the Emirate commenting that ‘prime locations offering high-end amenities continued to generate interest and subsequently increases in rentals’.
CEO of Bayut.com, Haider Ali Khan said: ” We continue to see strong rental demand in prime areas and there are good bargains available in the market for investing in property. There is a healthy job market which continues to blossom and this bodes well for the real estate market in the years to come “.
JLL’s Q1 report on Abu Dhabi ‘s real estate also highlights growth at the prime end of its property market. David Dudley, Regional Director at JLL MENA commented: ” Residential demand remains dominated by residents who are interested in renting rather than buying property. Rental growth for prime residential units continued at 4% during Q1, following 11% growth in 2014 and 17% in 2013, primarily due to limited quality supply across all price points and the removal of the rent cap “.
Bayut.com forecast continued growth in the Emirate, driven largely by lack of supply: ‘Abu Dhabi is expected to continue with its sustained growth pattern in the residential market. With a limited number of expected units lined up and an increase in business and job opportunities, the Emirate may see a subsequent rise in population of expats leading to a heightened demand. Stable growth trends are expected to continue even with the lack of interest in studio apartments among the residents. Investors with holdings in the suburbs of Abu Dhabi are set to see a period of increased interest as their assets continue to gain in popularity’.
Source:: Property show rooms