The National, 5 September 2024: Abu Dhabi is set to improve transparency and attract more investment in the real estate sector by updating the rental index every quarter and providing rental values of individual buildings.

The next step in the rental index is to zoom into specific residential buildings, providing accurate rental readings for stand-alone buildings rather than just sectors.

This move aims to offer more precise rental values for major landmark residential buildings in the capital.

Last month, Abu Dhabi launched the emirate’s first residential rental index, highlighting rental rates for apartments and villas in Abu Dhabi City, Al Dhafra, and Al Ain.

The index, available on the real estate centre’s website, provides indicative rental values based on transacted contracts.

Currently, Abu Dhabi law limits rent increases to 5% when a contract is renewed with the tenant annually.

However, residents can approach the real estate centre’s call center or office to resolve disputes with landlords.

The UAE’s property market continues to rebound strongly from the COVID-19 pandemic, driven by government initiatives and growth in the non-oil economy.

In the second quarter, Abu Dhabi’s average apartment prices increased by 6.2% year-on-year, while average villa prices grew by 3.9%, according to CBRE.

Approximately 1,800 new residential units are expected to enter the market until the first quarter of 2025 in Yas Island, Saadiyat, and Al Reem islands, amid continued demand for property.

The real estate centre carefully monitors the supply situation to maintain a healthy occupancy rate, currently between 85% and 90%.

Developers continue to launch new projects, with one developer unveiling a project on Yas Island, featuring 151 canal-front villas.

Another developer has also begun the handover process of units in the first phase of a project in Abu Dhabi.

Being an easy city to set up business and do business plays a key role in positioning Abu Dhabi on the global footprint for potential investment and increasing the demand projections into the real estate sector.

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