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. 


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