{"id":4146,"date":"2016-02-09T21:33:21","date_gmt":"2016-02-09T14:33:21","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=4146"},"modified":"2016-02-09T18:42:44","modified_gmt":"2016-02-09T11:42:44","slug":"rents-fall-in-some-of-abu-dhabis-high-end-properties","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rents-fall-in-some-of-abu-dhabis-high-end-properties\/","title":{"rendered":"Rents fall in some of Abu Dhabi's high-end properties"},"content":{"rendered":"


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\nSome upmarket Abu Dhabi landlords are starting to offer tenants small rent reductions as the low price of oil prompts the capital’s housing market to soften. Overall average housing rents in Abu Dhabi fell by 1 per cent during the three months to the end of December 2015, the real estate services broker CBRE reported, as landlords reduced rents for some larger and higher-end apartment types. However, rents ended 2015 about 4 per cent higher than they started the year, the company said, particularly driven by rent rises for smaller, more affordable homes.
\nIt said that tenants looking for cheaper accommodation were renting homes in off-island locations such as Khalifa City, where annual rents for one-bedroom apartments are between Dh40,000 and Dh55,000. In the city centre, they rent for between Dh60,000 and Dh110,000. “In response to the tempered market outlook, some landlords are now starting to offer tenants more flexibility, while also becoming more receptive to minor rental discounts, as they strive to maintain and build tenant loyalty to uphold occupancy rates,” said Matthew Green, the head of research and consulting in CBRE’s Dubai office.
\nAbu Dhabi scrapped its rent cap, pinning rent rises for existing tenants to just 5 per cent, in 2013. The move, which came at a time of an economic boom, helped fuel rampant inflation in 2014 and led to the brokerage ranking Abu Dhabi as the second most expensive place to rent in the world last year – something that has prompted many tenants to up sticks to the cheaper parts of town. But the oil price slump has prompted the government to put some planned infrastructure projects on hold, precipitating a series of job cuts in the capital’s highly paid oil and gas, infrastructure, construction and services sectors.
\nThe UAE rail operator Etihad Rail last month announced a “restructuring initiative” thought to have included cutting almost a third of its workforce as the government comes under pressure to rein in spending. And last week, the British engi\u00adneering company Atkins became the latest construction-related group to cut jobs in the region because of worsening economic conditions.The western law firms Simmons & Simmons, Latham & Watkins, Baker Botts and Herbert Smith Freehills have also recently closed their offices in the capital.
\nOther major infrastructure projects in the emirate are likely to come under pressure in the coming months as state budgets are squeezed further, pos\u00adsibly leading to further staff cuts for the sort of well-paid expats who would otherwise be renting upmarket apartments in the city. CBRE’s figures confirm reports of a general slowdown in Abu Dhabi rents last year. Last week, the property data company Reidin reported that, according to its figures, rents in the capital fell by an average of 3.8 per cent last year.
\nlbarnard@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Rents fall in some of Abu Dhabi’s high-end properties<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Some upmarket Abu Dhabi landlords are starting to offer tenants small rent reductions as...<\/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-4146","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\/p75ss1-14S","jetpack-related-posts":[{"id":39095,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-landlords-weigh-options-of-reintroduced-rent-cap\/","url_meta":{"origin":4146,"position":0},"title":"Abu Dhabi landlords weigh options of reintroduced rent cap","date":"December 28, 2016","format":false,"excerpt":"\r Two weeks after the Abu Dhabi government reintroduced a rent cap in the capital, landlords and tenants are still weighing what this will mean for the rental market next year.On December 13, the Department for Municipal Affairs and Transport announced that it had taken the unexpected step of reintroducing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":39089,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-caps-rent-rises-just-as-they-fall\/","url_meta":{"origin":4146,"position":1},"title":"Abu Dhabi caps rent rises, just as they fall","date":"December 28, 2016","format":false,"excerpt":"\r Two weeks after the Abu Dhabi government reintroduced a rent cap in the capital, landlords and tenants are still weighing what this will mean for the rental market next year.On December 13, the Department for Municipal Affairs and Transport announced that it had taken the unexpected step of reintroducing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18762,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rents-at-abu-dhabis-reem-island-may-drop-once-dust-settles-after-summer\/","url_meta":{"origin":4146,"position":2},"title":"Rents at Abu Dhabi's Reem Island may drop once 'dust settles' after summer","date":"July 5, 2016","format":false,"excerpt":"\r Housing 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\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":47751,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-office-rents-to-decline-further\/","url_meta":{"origin":4146,"position":3},"title":"Abu Dhabi office rents to decline further","date":"March 12, 2017","format":false,"excerpt":"\r Office rents in Abu Dhabi are expected to fall further this year as the office market continues to be hit by the mergers of some of the capital's largest companies, and lay-offs in the oil and gas sector.According to research by property broker CBRE, office rents in Abu Dhabi\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":34618,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-residential-rents-feel-the-pinch\/","url_meta":{"origin":4146,"position":4},"title":"Abu Dhabi residential rents feel the pinch","date":"November 16, 2016","format":false,"excerpt":"\r Office rents in Abu Dhabi have fallen to their lowest point in more than eight years as low global oil prices continue to slow the capital's economy. 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