Abu Dhabi rent hike: Expatriates face potential 30% increase following new rent index introduction

ABU DHABI: Many expatriates, including from Kerala, come to UAE daily in search of work. Many expatriates also live in Abu Dhabi, the capital of the UAE but now new reports are coming out that can backlash the expatriates. After the introduction of the official rent index, there are reports that the rental rates in Abu Dhabi will increase by up to 30 per cent.

With the introduction of rent indexation, landlords are bringing changes in rent rates. This is due to increased demand for accommodation facilities. At the same time, the new plan also provides an opportunity to negotiate lower rates in areas where rents are higher than the official index.

The Abu Dhabi Real Estate Center, the real estate regulator board, released the first official rent index covering the Dhafra, Abu Dhabi and Al Ain regions last Tuesday. Through the index, property buyers and tenants can check rental values by location and number of bedrooms.

Real estate agency Asteco Consultancy stated that rental rates for apartments have increased by up to two percent and up to ten percent in developed areas.

Existing tenants may not be immediately affected by the rate hike as there is a five per cent cap on renewal rent increases in Abu Dhabi. Rental rates in some popular areas such as Saadiyat Island saw a significant increase last year due to high demand from new tenants settling in the emirate. Abu Dhabi's population was recorded at 3.8 million last year. With this, Abu Dhabi has become the most populous emirate in the country.