Abu Dhabi tenants may face rental increases of up to 30% in certain areas as landlords adjust prices following the introduction of the UAE capital’s first official rental index. The new index, launched by the Abu Dhabi Real Estate Centre (ADREC), is expected to drive up rents in locations where rates have historically been below the market average due to high demand and limited supply.
The rental index, which covers regions including Dhafra, Abu Dhabi, and Al Ain, offers property buyers and tenants a benchmark to check indicative rental values based on location and unit size. According to a Khaleej Times report, this tool aims to stabilize the rental market by reducing discrepancies between actual rents and market values, allowing for more balanced rental agreements.
Industry experts noted that while existing tenants might not see immediate increases due to a 5% cap on rent hikes during renewals, new leases could be subject to higher rates. The index is also anticipated to aid tenants in negotiating better terms in areas where rents are above the index figures.
With Abu Dhabi’s population growth and full occupancy in popular localities, especially in the luxury segment, the rental market continues to experience strong activity.