A growing number of residents of Abu Dhabi are reportedly demanding that authorities implement a rent cap in response the emirate’s soaring property market and rental rates, which have jumped a staggering 30 percent annually in recent years.
"I think the authorities have to impose a cap on rental increases because owners are aware of the high demand for residences," said Yvonne Vaz, a mother of three children and resident of Abu Dhabi, according to Gulf News.
Many property management companies and real estate agents attribute the soaring rents to an acute shortage of one- and two-bedroom apartments, according to Gulf News. "At present there is an acute shortage of quality accommodation, particularly in the middle and affordable price ranges and there have been significant increases in rents," said the managing director of property management company Asteco, Andrew Chambers.
According to the firm’s data, the average rent (June 2006) of a one-bed-room apartment in the capital is Dh53,000, two-bed-room apartments are Dh76,000 and three-bed-room apartments are Dh127,000. Rents have increased by 33 per cent for single-bedroom apartments, 23 per cent for two bedrooms and 30 per cent for three bedroom from June 2005 to June 2006.
"The landlord sent a note saying the rent will increase to Dh40,000 from the present Dh30,000 for my single-bedroom apartment when my contract comes up for renewal next month," said Abu Dhabi resident Basel Al Bendari.