| Abu Dhabi Rental Market Equates to Dubai High End Properties|
|Dubai real estate market is in the state of flux. This situation remains same across the all the regions and all types of properties whether available for sale or rental properties. Some new residents are landing in the city but the numbers are neither so considerable to mention over here nor do they bring any significant change to the real estate sector. Few old timers are also back to Dubai with the hope to pay less and get more in terms of facilities and lifestyle. No doubt, property prices are hitting the bottom and rents of apartments, villas and offices have also dropped down to minimum. Seems like it is more of a renters' market now as buying and selling activities are not so substantial in it. Due to the cold conditions of Dubai properties market, investors have started looking in the surrounding regions to buy or take rental properties at low rates.|
Abu Dhabi real estate sector has seen the increase in demand both in residential and commercial sectors. It has become the next favorite investing option for the expatriates, Gulf local residents and foreign investors. Abu Dhabi rental properties have reached a parity level with Dubai high end properties both in residential and commercial properties sector. Let's review residential and commercial sectors of both regions.
Residential Properties Analysis:
The number of Dubai residential properties is continuously increasing and the supply exerts a downward pressure on Abu Dhabi rental amounts. Due to which a significant fall in rental amounts was noticed in Abu Dhabi properties at the beginning of year 2011. Dubai real estate has lost the trust of key investors and to secure their investment, market has come to hold. In the meanwhile, professionals have started moving from Dubai to Abu Dhabi for work and looking for residential properties. Due to which Abu Dhabi rental market of residential properties seemed to be picking up as compared to Dubai rental market. The demand is also increased.
Abu Dhabi has become an affordable place to live in as several people are taking advantage of the fall in rental amounts. However, due to continuously increasing demand of Abu Dhabi properties, the rental amounts are also increased. Rental amounts in some new Abu Dhabi developments are at equal level with some high-end properties in Dubai Marina and Palm Jumeirah.
Commercial Properties Analysis:
As it is mentioned that professionals are relocating from Dubai to Abu Dhabi, therefore the supply of new commercial properties and office space is moving upwards. It is expected that approximately 3,000,000 square meters will be captured by the end of year 2011. Upward supply of commercial properties is expected to lower down the vacancy levels as absorption rates are not as high that can match with the office completions side by side.
While comparing the Grade A and Grade B office spaces, the Grade A office spaces experienced a hike in rental amounts and Grade B offices has experienced a fall in rental amounts due to less facilities, poor finishing, limited light, lack of IT services and certain other facilities such as parking space.
Although Abu Dhabi commercial sector is not touching the same level of rental amount as observed in Dubai rent amounts but as the large number of companies is relocating to Abu Dhabi, one can expect that commercial real estate will also experience parity with Dubai commercial real estate.
William King is the director of Dubai Rent, Dubai Property and Dubai Rental. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.