Abu Dhabi rents fall 5% in Jan 2016

Abu Dhabi rents fall 5% in Jan 2016
The average apartment rent fell 5% in Abu Dhabi in January 2016.
Published: 18 February 2016 - 4:30 a.m.
By: Ashleigh McGinley

The average annual apartment rents in Abu Dhabi fell 5% to $36,800 (AED135,000) in January 2016, according to a new report by Bayut.com.

The real estate website's report found average annual rents for studio apartments in the UAE capital to be $17,400 (AED64,000) in January, a 3.6% decline in value compared with December 2015. 

One-bed and two-bed apartments saw respective falls of 1.3% and 4%, with average rents at $27,000 (AED99,000) and $37,000 (AED136,000) in the first month of the year.

Meanwhile, the average annual rent for three-bed apartments rose 2.3% to $52,300 (AED192,000). 

And, the 4+ bedroom category saw the biggest decrease with rents falling 4.6% to $68,600 (AED252,000) in January. 

Despite apartment rents witnessing declines, Bayut.com's report found average yields still offered a lot of value for investors averaging 7% across all bed categories. 

Individually, studio apartments yielded an impressive 9.4% asset value, while 1-bed yields remained a little over 8%. 

Two-bed and three-bed apartments returned yeilds of 7.3% and 7.4% on average, while rental yields for 4+ category stood at 4.64%.

According to Bayut's research trends, Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island remained the top five localities for renting apartments in Abu Dhabi. 

 

Click here to add your comment

Please add your comment below
Name
Country
Email
Your email address will not be published
Captcha