Picture for illustrative purposes only. ARCHIVE

New Abu Dhabi tenants may expect a rise in rent of up to 30 percent, following the launch of Abu Dhabi's first official rental index. On Tuesday, real estate regulator Abu Dhabi Real Estate Centre (ADREC) launched its first official rental index, which aims to make rent prices more fair and transparent. The index covers Dhafra, Abu Dhabi, and Al Ain regions. Property buyers and tenants can now check true market values for housing units, depending on the location and the number of bedrooms. The index will also help tenants negotiate fair prices in areas where rents are currently higher than the index suggests. Following the launch of the index, industry experts predict that rents may rise in some areas where current rates are below the market average due to high demand and limited supply of rental properties. Compared to the new tenants, current tenants will experience more gradual and controlled increases as the emirate has a 5 percent cap on rent increases upon renewal. Abu Dhabi's rental market continued to rise in July, especially in upscale apartment and villa locations. Asteco, a real estate consultancy, reported slight increases in average apartment rents quarterly and annually of 1 percent and 2 percent, respectively. FLE/Expat Media
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