Abu Dhabi rents skyrocket by 50pc
A recent study published by Economy Today revealed that Abu Dhabi rental rates have risen by a staggering 50 per cent over the course of the current year, despite record breaking levels of construction in the emirate.
Economy Today, the monthly publication of the Abu Dhabi Chamber of Commerce and Industry, cited the 11,000-unit Showayba City at Mussafah development project as only one of the multitude of construction projects underway currently, according to Gulf News.
The study also cited several projects at Shahama, as well as future plans for creating Khalifa Cities A and B. It also revealed that some Dh230 billion worth of developments are expected in Abu Dhabi by 2009.
A total of Dh75 billion worth of planned projects have been announced so far in total, including the of Dh35 billion Emirates Pearl, the Dh25 billion Shams Abu Dhabi, and the Dh15 billion Al Reem development.
According to statistics, an estimated 36.1 per cent of average household budgets are allotted to rent payment, a fact that has sparked fears of inflation rising to 20 per cent and threatening the flow of foreign direct investments to the UAE.
Some of the reasons for skyrocketing costs, according to the study, were rising rentals costs in Dubai, the influx of foreign labor to Abu Dhabi, and unclear tenant-landlord relationships.