All but 18 months ago, the housing situation in the capital was dire. Unless you wanted to share with friends, you were forced to either move to Dubai and trudge up and down the E11 highway every day or take a grotty room in a villa, often without water and other basic amenities. During the boom years of 2007 and 2008, and after the downturn in Dubai when many were forced to head to the capital in search of a living, rents rocketed to record levels, with tenants scrambling for space in even the lowest-quality buildings. Thankfully, nowadays, although Abu Dhabi hasn’t seen the spectacular dives in property prices of Dubai, the situation is improving all the time. Last year, rental prices fell by an average of 14 per cent across the board, and, with massive build projects in places such as Reem Island coming online later this, they could drop by up to 25 per cent. As a result, hundreds of tenants are beginning to think again about their living arrangements. Want to do the same? We’ve done the legwork for you.
We speak to Andrea Menown, leasing manager with Abu Dhabi real estate experts LLJ Property, to dissect what’s happening in the property market of each area of the city.
Tourist Club Area/ Al Markaziyah
Dhs85,000: Average annual rent for one-bed
Although hard to find
Dhs130,000: Average annual rent for two-bed
Amenities: One of the oldest parts of the city, many buildings here are beginning to show their age while some are almost ready for the demolition crews to move in. But you’re right in the hub of the city, with scores of nightlife options right on your doorstep.
Drawbacks: It’s that old Abu Dhabi bugbear of parking. When many of these buildings were built, underground parking areas were obviously not thought of as a necessity. Finding a parking space in the evenings can be a nightmare, with people circling their blocks for up to an hour in a tireless search for spaces. Even though the Mawaqif paid parking scheme has been introduced, some residents say it has made the situation worse, because parking in the centre of the roads is a sure-fire way to get a ticket, so maybe it’s better to rely on the plentiful taxis if you live here.
Residents’ tips: Ruchi, located behind Al Mariah Mall on Najda Street, is possibly our favourite budget curry house in the city. We could eat their chicken tikka masala every day if no one were around to stop us.
Khalidiyah
Dhs95,000: Average annual rent for one-bed
But very rare
Dhs150,000: Average annual rent for two-bed
Amenities: Khalidiyah is still one of the most desirable areas in the city for expats. People with children are queuing up to live here because of the large numbers of parks and schools, plus it’s within walking distance of the Corniche and the beach. If you manage to find somewhere to live, expect a very spacious apartment with enough room to swing a tiger. The community itself is safe and friendly, with plenty of small, boutique shops hidden in the backstreets, as well as shopping malls and supermarkets aplenty.
Drawbacks: There’s still a waiting list to move into the area, so you’re going to be paying more for less. And some of the properties are a bit rundown, so you’re basically paying for your location. Also, like Tourist Club Area, parking is a huge problem, although some of the newer properties do have underground lots. Because of this, you’ll pay less for an apartment in an older building without any basement parking spaces.
Residents’ tips: The British-style 3rd Avenue pub at the Sheraton Khalidiyah is probably the community hub for expats. Meanwhile, Ghaf Gallery and Salwa Zaidan Gallery are both within walking distance for cultural obsessives.
Bain Al Jessrain
Dhs90,000: Average annual rent for one-bed
Dhs120,000: Average annual rent for two-bed
Amenities: In the past few years, the area just over Maqta and Musaffah bridges has seen a vast number of villas spring up, turning the district into a sprawling suburb. The quality of build varies greatly, however, and, while some houses are palace-like, others can be bordering on grotty. It’s mainly a residential area, with a mix of local and expat families filling up the properties.
Drawbacks: If you work in the downtown area, it’s a pretty lengthy journey to get here and traffic can be a problem. Unless you own a set of wheels, you’ll find it tricky to get taxis, especially in the summer when you won’t be able to walk to the souk without fear of evaporating.
Residents’ tips: You’re spoilt for choice when it comes to high-end bars and restaurants at the Shangri-La and Souk Qaryat Al Beri. Should you fancy some good value eats, try Noodle House at the Souk. We’re also partial to picking up a shawarma or two at Fileh Inn, located just behind the Bain Al Jessrain Co-Op, which serves up a delicious meaty wrap.
Al Mushrif
Dhs90,000: Average annual rent for one-bed
Dhs140,000: Average annual rent for two-bed
Amenities: A huge neighbourhood made up mostly of villas located in the dead centre of Abu Dhabi island. It’s primarily a family area, with many of the large houses divided into separate apartments, although there are a few low-rise new builds available, which are generally spacious and modern.
It’s reasonably inexpensive to live here, compared with other on-island districts, although many of the villas are on the dilapidated side. You’ve also got the advantage of plenty of on-street parking, and there’s a community atmosphere in many parts, so you might forge a beautiful friendship with your neighbours. Plus, on-street parking is easy to find.
Drawbacks: Lack of amenities is a major problem. There is a Co-Op store on Khaleej Al Arabi Street, but apart from that you’re limited to picking up your weekly groceries from the small corner shops, or dining out from the gas station forecourts’ fast-food outlets. The area is also a bit of a maze. If you do decide to set up home here, make sure you have accurate directions to pass on to any delivery driver. If you’re a bachelor, you could feasibly get away with living in the area, but we’ve heard reports of some single chaps being threatened by their neighbours that they’d be reported to the Municipality for daring to reside here without a family in tow, so it might not be worth the risk.
Residents’ tips: Crystal Holistic Day Spa is a one of the area’s hidden gems, and brings the best of European pampering techniques to the Middle East at affordable prices.
Manasir
Dhs90,000: Average annual rent for one-bed
Dhs140,000: Average annual rent for two-bed
Amenities: An area that’s hugely desirable for both families and single people, as it’s relatively green, not too far from the city centre and taxis are readily available. It’s mostly villas, but there are plenty of new low-rise apartment blocks springing up, which have the added bonus of off-road parking. You’ve also got Abu Dhabi Country Club right on your doorstep, and if you can get yourself bumped up the lengthy waiting list, you’ll have exclusive membership to the best fitness centre in the capital.
Drawbacks: With its mix of a suburban feel without being too far from the centre, apartments here are gone in the blink of an eye as soon as they come online. Move fast, or you’ll miss out.
Residents’ tips: Il Forno is a decent spot for a pizza, while should you be up for some seriously swanky food, Sardinia is the only specialist molecular gastronomy restaurant in the city.
Al Muroor
Dhs110,000: Average annual rent for one-bed
Dhs140,000: Average annual rent for two-bed
Amenities: Once nothing more than a small collection of small villas, Al Muroor is on the cusp of being one of the city’s most sought-after living locations. Around the junction of 4th and 15th streets, there are numerous high-rise tower blocks being erected at rapid speeds, many of which will be residential units, with mod-cons such as underground parking, gyms and pools. Many of the new developments have been specifically designed for single people, and are composed of high-quality studios and one-beds. You’re not too far out from downtown Abu Dhabi, and you’re also close to the main highways out of the city, should you need an escape from urban life for a while.
Drawbacks: Al Muroor is a bit of building site at the moment and the rush to get new towers erected means construction work goes on pretty much round the clock. Also, because of the scarcity of studios and one-bedrooms, many of the new buildings are full up. You may be waiting a while before you get to move in.
Residents’ tips: Pretty much everyone knows about Jones the Grocer in the Al Mamoura Building (and its delicious apple crumble pie), but there are a few other hidden gems among the backstreets of Muroor. The recently opened Alfredo coffee house serves up a mean brew, while Maharaja Palace is a classy curry house that does a delicious rogan josh.
Khalifa A
Dhs65,000: Average annual rent for one-bed
Dhs90,000: Average annual rent for two-bed
Amenities: Out by the airport, villas have been springing up as quickly as is humanly possible to build them. Many of these have now been divided into separate abodes, meaning there’s no shortage of housing. Visit any letting agent, and they’ll most likely take you on a tour of around four of five decent places within half an hour.
Meanwhile, earlier this year the Al Bandar development came online, consisting of the apartments opposite the Etihad HQ on the Dubai road. Despite being somewhat of a distance from the main city, they’ve proved hugely popular, because there are plenty of studios and one-bedrooms, they’re in a self-contained resort, with gyms, pools and underground parking, and also have plenty of small shops in the area. There are even plans to open a licensed restaurant in the near future. Most of the apartments have been purchased already, and cost a little bit more than the average for the area, but a few are up for rent now. If you have kids, there are plenty of schools in the area, most of which aren’t oversubscribed.
Drawbacks: Many of the villas in Khalifa A were put up quickly and cheaply, so, although they appear in pristine condition when they’re new, after a year or two, you might start to see some major faults emerging. ‘The villas always look great for the first year,’ says Andrea. ‘But in year two, you may start to see peeling paint or the AC might not work properly in the summer when temperatures hit 48°C.’
Residents’ tips: Le Brioche is a decent French eatery that has recently opened its doors, while Etihad Plaza has a few coffee shops and a pretty well-stocked supermarket.
Khalifa B/Mohammed Bin Zayed City
Dhs60,000: Average annual rent for one-bed
Dhs80,000: Average annual rent for two-bed
Amenities: Not much in the way of small shops, but you’re only a couple of kilometres from Khalifa A. Also, the Mazyad Mall and the new Delma Mall, which is the biggest in Abu Dhabi, are both nearby. Apart from that, your social life will probably revolve around barbecues and parties at home. On the plus side, parking won’t be a problem, and it’s an incredibly safe area where your kids, if you have them, can play outside.
Drawbacks: You’re right out in the sticks so if you have an active social life, make sure you have a friend who doesn’t mind you kipping on their sofa after a hard night on the tiles.
Residents’ tips: You’re not too far from Khalifa A, so you can enjoy all of the amenities here if you own a car. Also, Delma Mall has a giant Carrefour supermarket and Matalan, a favourite among penny-pinching British clothes shoppers.
Corniche
Dhs120,000: Average annual rent for one-bed
Almost impossible to find
Dhs160,000: Average annual rent for two-bed
Amenities: It’s not hard to see why this area is perhaps the most desirable in the city. With some amazing views over the turquoise waters of the Gulf, residents are still fighting tooth and nail to find an apartment in one of the seaside properties. It’s all about the location, with scores of shops, bars and restaurants just a few steps from your house. Also, the apartments are often very large with high ceilings and decent floor space.
Drawbacks: The tower blocks here were among the first to be built in the capital for local families to live in. But there lies the problem. Some of the buildings haven’t been well maintained. Andrea says: ‘We’ve heard of pool areas being closed down and gyms with all the equipment out of service, while some of the lobbies and communal areas are a bit shabby.’ Also, as many families have settled in the area and aren’t planning on moving, finding apartments here, especially one-bedrooms, is almost impossible. Andrea says: ‘I’ve been working for this company for almost four years, and I’ve only been into a handful of these buildings.’
Residents’ tips: You’ve got a wealth of shops and nightlife spots to enjoy, as well as a giant stretch of beach right on your doorstep. However, if you fancy a peaceful cup of tea in a quirky setting, try Zyara café, next to the Hilton residences.
Reem Island
Not known as yet, but expect it to be cheaper than average
Amenities: Reem Island is just a few months away from having its first properties come online. And with 22,000 residential units planned in total, this development is expected to give breathing space to Abu Dhabi’s housing congestion. Andrea says: ‘We’re expecting this development to provide a greater choice of properties, with varying kinds for singles, couples and younger people. People who are forced to share or live in a studio should be able to afford a decent one-bedroom on Reem Island.’
Drawbacks: You’re basically moving into a giant building site. Expect some teething troubles for a few years.
Residents’ tips: Reem Island residents have been promised parks, hotels and even an aquarium. But all of these are a long way off yet, so you’ll be heading to the main island for your entertainment for some time to come.
How to haggle down your rent
1 Feel the force: Although we don’t quite have the tenants’ market they do over in Dubai, it’s beginning to swing our way and there are plenty of flats to be found.
2 It’s all about the economics: The ridiculous scarcity of flats is coming to an end, with some estimating 15 per cent of properties in the city are now unoccupied. According to experts, it’s this situation which should be relied on to negotiate rent or arrange to pay in more cheques. Nick Turner, partner at UAE-based law firm Herbert Smith LLP, advises that tenants put commercial pressure on landlords, rather than legal. ‘That’s the best weapon. Historically, if you moved, landlords could just get a new tenant. Now, tenants have more choice, so are in a much better negotiation position.’ He said this was especially true if your apartment was old-fashioned, as the landlord would probably rather keep you there than have to cough up to renovate the place.
3 Consider sharing: Studio and one-bedroom apartments are still in short supply, but there is now a glut of two-and-three bedroom ones on the market. So, if you really want to pay less per month, you may want to consider giving up your lonely lifestyle and sharing with some mates.
4 Set up a meeting: Legal firm Davidson & Co’s head of corporate services Alex Watson stresses the importance of face-to-face negotiation. ‘There is nothing specifically in the law that the tenant can rely on to force the landlord to reduce the rent,’ he says. ‘The key is communication. Tenants should concentrate on providing credible evidence of the rent in their areas and present a business case for reducing their rent. Landlords are realising that retaining a tenant at a reasonable rent is better than scrambling around for a new one.’
5 Pay more cheques: Although this won’t reduce your rent, it means you’ll avoid having to scrape together the cash for the massive once-a-year hit of paying in one cheque. Most landlords will now accept two post-dated cheques, and, with a bit of pleading, some will agree to three or even four.
Rental warning
Although it’s tempting to take a room in a shared villa, while it’ll definitely cost you a lot less than a standalone apartment, you could be breaking the law, and could even find yourself evicted. Andrea Menown, of LLJ Properties, says: ‘Unless they’re purpose-built studios, the layout of the rooms is not going to be great. A room in a villa isn’t necessarily going to be a legal conversion, so we as a company don’t have anything to do with them because we feel we have a responsibility to our tenants. You run into problems with water, electricity and AC in the summer.
‘A good rule of thumb is if it has its own meter in it, you can take that to mean it’s all legit. But if your water and electricity are included in your rent, then you should assume the building hasn’t been inspected at a final handover.’
As the Abu Dhabi Municipality is beginning to crack down on illegal shared villas, you might well be turfed out soon after you’ve moved in, with little chance of getting your rent money back. Remember, if it sounds too good to be true, it probably is.
