Abu Dhabi: Expat families are scrambling for cheaper living options in and around the capital city amid soaring rents.
With rents up by more than 40 to 50 per cent in many residential areas in the absence of a rent cap, tenants are running helter-skelter for cheaper apartments.
“My rent will go up from Dh90,000 to Dh110,000 when I renew the contract in June. I am desperately looking for another two-bedroom house that will fit my budget,” said Imtiaz Mohammad, 46, a Pakistani engineer who lives in Mina area.
Mohammad has been living in the same apartment with his wife and three children for ten years.
George, another expatriate, has also been thrown into a quandary due to the cap-free rent hike. The rent for his two-bedroom apartment in Hamdan Street that comes under ADCP (Abu Dhabi Commercial Properties) has increased by 45 per cent.
“My monthly income remains the same, so how can I cough up an extra Dh20,000 a year in rent?” asked George.
“The only option is to look for another house,” he said.
But finding another apartment in Abu Dhabi is not easy as rents have increased all over the city including the Tourist Club, Khalidiya, Electra Street, Najda.
Newly developed gated communities like Reem Island, Saadiyat Island, Al Reef and Khalifa City have also witnessed rent increases.
Even Mussafah, which is on the outskirts of Abu Dhabi, is reeling under huge rent increases. XPRESS reported in January that rent for a one-bedroom unit has gone up to between Dh50,000 and 65,000 from Dh45,000 to Dh50,000.
The average rent for a two-bedroom apartment in Mussafah is more than Dh70,000 now. Two years ago these apartments were available for less than Dh55,000.
Free for all
Though Abu Dhabi has always been an expensive city to stay, rent caps had kept arbitrary rent increases under check. An increase in supply also brought the rents down until a year ago.
But with the removal of the five per cent annual rent cap from November, rents have headed northward.
Real estate agents told XPRESS they are flooded with calls from people looking for cheaper accommodations.
“Rents are going up everywhere in the city. Living in Abu Dhabi is going to be even more expensive,” said Egyptian real estate agent Mohammad Hassan.
He said people are looking for one-, two- and three-bedroom units costing anything between Dh80,000 and Dh100,000.
“There are not many apartments available at that cost. Prices of most vacant units have gone up by 35 or 40 per cent,” he said.
Another real estate agent who requested not be named said landlords are taking undue advantage of the situation. “People are scrambling for low rent apartments in Mussafah. There are families that are even ready to move to Shahama, which is far off from the city,” said the agent.
