{"id":18762,"date":"2016-07-05T23:49:15","date_gmt":"2016-07-05T16:49:15","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=18762"},"modified":"2016-07-05T22:01:08","modified_gmt":"2016-07-05T15:01:08","slug":"rents-at-abu-dhabis-reem-island-may-drop-once-dust-settles-after-summer","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rents-at-abu-dhabis-reem-island-may-drop-once-dust-settles-after-summer\/","title":{"rendered":"Rents at Abu Dhabi's Reem Island may drop once 'dust settles' after summer"},"content":{"rendered":"


\nHousing rents for existing tenants on Abu Dhabi’s Reem Island could fall by as much as 10 per cent by the end of the year, estate agents say.The effect of job cuts across the oil and gas and construction industries and the fall in global oil prices could finally persuade landlords on Reem – the part of the city where most new supply is coming on stream – to lower rents for existing tenants starting by the autumn.There are about 245,000 residential units in the newer areas of Abu Dhabi, with 4,000 more expected to enter the market this year, according to JLL. Many of those homes will be on Reem Island, where the property broker predicts rents could dip by a 10 per cent after having rocketed up by 33 per cent between 2013 and last year.”We expect vacancy rates to increase further in the second half of the year due to job cuts and people looking to either leave or downsize as their tenancies come up for renewal. This is expected to lead to a further discount in rents at a time-lag to vacancy increasing,” said David Dudley, the head of JLL’s Abu Dhabi office.Mr Dudley said that demand slowed during the last quarter, amid announcements of job cuts and “a continued pause in government spending”, but in the short term, landlords had been holding the line on rents. “While there are signs of vacancy rates starting to increase slightly, many landlords are still able to maintain the same rental levels – with tenants often accepting this to avoid the additional costs and hassle of moving.”According to property broker Asteco, rents for flats across Abu Dhabi fell by 2 per cent during the first three months of the year compared with the previous quarter, with the biggest drops concentrated on Reem Island. It reported that apartment rents in the island’s Shams Abu Dhabi area dropped by 6 per cent quarter-on-quarter, ranging from Dh95,000 to Dh120,000 for a one-bed unit, or Dh130,000 to Dh170,000 per year for a two-bed.But brokers say that these reports are heavily weighted towards new tenancies rather than renewals.Existing Reem Island tenants report that landlords are continuing to increase rents, knowing tenants would rather stay than have to pay the thousands of dirhams in agency fees for new homes.”We are aware of reports saying that rents in Abu Dhabi are falling but realistically it is unlikely that we will see many rents fall in Abu Dhabi until after the dust settles in October,” says Ben Crompton, the managing partner of Crompton Partners. “By then, everyone who is moving out will have done so and landlords will have a better idea of the situation.”Mr Crompton says that the large number of individual landlords on Reem Island means rent reductions are more likely there than elsewhere in the city, such as on the Corniche, where property is often owned by high-net-worth individuals and institutions better able to absorb the hit from vacancies.lbarnard@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Rents at Abu Dhabi’s Reem Island may drop once ‘dust settles’ after summer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Housing rents for existing tenants on Abu Dhabi’s Reem Island could fall by as much...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-18762","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-4SC","jetpack-related-posts":[{"id":15978,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/villas-on-reem-are-bit-of-a-dream\/","url_meta":{"origin":18762,"position":0},"title":"Villas on Reem are bit of a dream","date":"June 9, 2016","format":false,"excerpt":"\r No, this isn't a picture of a lux\u00adury holiday home on the island of Bali but the first - and pos\u00adsibly only - villas to be built in Abu Dhabi's Reem Island.Nalaya, a gated development of 42 villas for rent on the furthest southern tip of Reem Island, is\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":159303,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/al-reem-island-property-prices-surge-38-in-q2-2025-cementing-lead-as-abu-dhabis-top-investment-hotspot\/","url_meta":{"origin":18762,"position":1},"title":"Al Reem Island property prices surge 38% in Q2 2025, cementing lead as Abu Dhabi\u2019s top investment hotspot","date":"August 14, 2025","format":false,"excerpt":"\r Some Abu Dhabi rents up 21 per cent as demand grows for luxury waterfront living in ADGM\u2019s residential hub\r \r Source : arabianbusiness.com\r Read more...Al Reem Island property prices surge 38% in Q2 2025, cementing lead as Abu Dhabi\u2019s top investment hotspot","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2025\/08\/Al-Reem-Island-in-Abu-Dhabi-1-1000x667-1.jpg?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":43837,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabis-residential-rents-to-continue-to-decline-in-2017\/","url_meta":{"origin":18762,"position":2},"title":"Abu Dhabi's residential rents to continue to decline in 2017","date":"February 12, 2017","format":false,"excerpt":"\r Housing rents in Abu Dhabi look set to continue plunging for the first half of 2017 amid continuing economic uncertainty, job losses and cost-cutting measures, property brokers forecast. Chestertons Mena says villa rents in Abu Dhabi fell by 10 per cent during 2016 while apartment rents fell by an\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15116,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/reem-island-tenants-rents-still-on-the-march-up\/","url_meta":{"origin":18762,"position":3},"title":"Reem Island tenants' rents still on the march up","date":"June 2, 2016","format":false,"excerpt":"\r ABU DHABI \/\/ People are paying higher rents on Reem Island, despite reports from property agencies that prices are falling.Two agencies reported drops of up to 6 per cent in the Shams development - including the Gate and Sun & Sky towers - on Reem as new housing came\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44235,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-broker-asteco-expects-abu-dhabi-rents-to-fall\/","url_meta":{"origin":18762,"position":4},"title":"Property broker Asteco expects Abu Dhabi rents to fall","date":"February 15, 2017","format":false,"excerpt":"\r Asteco has become the latest property broker to forecast rent declines in Abu Dhabi this year as 4,000 new homes are expected to come on to the market. According to the property broker's data, average rents for apartments in Abu Dhabi fell by 7 per cent in 2016 and\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14068,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rents-fall-in-abu-dhabi-as-confidence-remains-shaky\/","url_meta":{"origin":18762,"position":5},"title":"Rents fall in Abu Dhabi as confidence remains shaky","date":"May 23, 2016","format":false,"excerpt":"\r Renters in Abu Dhabi are continuing to downsize to more affordable apartments as lower oil prices cast a shadow over the emirate's economy, according to the property consultancy Asteco. 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