Low supply to stop abu dhabi rents falling

Abu Dhabi rents are unlikely to fall in the coming year, as a severe shortage of affordable homes is set to continue.

This will be primarily because of new regulations coming into force this month, which is designed to make the market more transparent for investors. However, as developers become more cautious to ensure they comply, activity is expected to slow down, which will stop supply increasing to meet demand.

It follows the removal of a rental cap that prevented landlords from hiking rates by more than 5 per cent, which is exacerbating the situation.

May Hassan, financial analyst at real estate services company Jones Lang LaSalle (JLL), told Gulf News: "Rents during the next year are expected to remain stable or even increase slightly, similar to what occurred during 2015. In fact, the Abu Dhabi market saw a four per cent increase in rents in the first quarter of [2015]."