Sunday, August 03, 2008

Abu Dhabi office rents surge 27 percent

office rent in abu dhabi
Office rents in Abu Dhabi have surged by 27 percent as against that in April 2007, states the Better Homes Commercial Review Quarterly Report. Better Homes is an international property consultancy group.

The recent Cityscape Abu Dhabi has sparked a craze for buying, thereby leading to considerable rent increases, states the report.

The launch prices of the Al Dana development in the Al Raha Beach, has revealed a supply shortage of Dh.4400 per square feet, and this indicates a shortage in office supply.

The units of Al Reem Island are being sold at the range of Dh.2000 to Dh.2500 per Square Feet, while the rentals are in the range of Dh.250 to Dh.300 per Square Feet.

There is also an acute shortage of residential and commercial properties in Abu Dhabi as against that in Dubai, and this shortage has also led to high rentals.

With the supply coming into stream during the next few quarters, the tenants and end-users states the report by Better Homes.

The industrial sector in Abu Dhabi sees a shortage of supply of labour accommodation, with more developments initiated in Abu Dhabi. The rental rates for low quality accommodation are around Dh.3000 to Dh.3500 per month, while the higher quality areas are seeking rates at Dh.3750 to Dh.4250.

As for the retail sector in Abu Dhabi, there has been a steady increase in rent and sales rates during the first quarter. The average prices of retail spaces in Abu Dhabi are between Dh.350 to Dh.400 per square feet, while sales average on Dh.2000 to Dh.2500 per square feet.

2 comments:

Property in Brazil said...

Yes, I agree that the rents for the houses and offices have increased to a great percentage this year. The price of the property is increasing rapidly.

Anonymous said...

yaa this was all speculation which surged the rentals/sell of properties.just like any bussiness if you hoard any item including real estate it is going to burst and here we are at the end of this year only things arent any rosy those who made it good luck but belive me it is not good at all for the end buyers.they must have lost thier entire capital just because of few crafty real estate owners.i wish such scenario does not repeat otherwise it will finish the confident in investing again in uae