Friday, August 13, 2010

Marina Square units likely to be the costliest in Abu Dhabi rental market

Abu Dhabi's Marina Square apartments on Reem Island, ready for handover, are likely to be the costliest in the rental market of the Capital.

At present, the maximum rental for a double bedroom apartment at the Corniche is about Dh.210,000 to Dh.230,000 a year.

The rents will be about 10percent more than those for similar apartments on the Corniche or Abu Dhabi Island, said Andrew Laver, Manager for Valuation and Advisory at Chesterton International.

This could be due to the location, parking, views, and lack of congestion. Several owners and potential tenants have been waiting for the handover of the units. The entire project renders a new lifestyle with excellent views, an underground parking system, away from the hustle-bustle of the city center, he said.

More than 3000 units across the thirteen high-rises will be ready to be occupied post-Ramadan. Several of these will enter the leasing market during the next few months. The owners are likely to demand a premium, and do not mind keeping their properties vacant until they earn the desired rent.

Certain other factors such as limited availability of units for rents on the Corniche, also contributes to high rental prospects for Marina Square. Moreover, any building that is completed is often fully rented out in two months.

The Chesterton's projections indicate that rentals for apartments on the Corniche may remain comparatively stable during the coming months with the delivery of Marina Square units. But, properties along Al Falah and Hazaa Bin Zayed may see considerable decline in rents.

However, Charlie Walsh, Head of transactional services at Asteco Property Management, is not ready to compare Marina Square with Corniche. Comparison of rentals between Marina Square and Corniche is difficult, as the grade and quality of accommodation on the Corniche varies depending on the age of the building. Moreover, the units in Marina Square are yet to be handed over, and therefore, rentals are yet to be proven.

Further, the Corniche is considered a prime locality to life, with older buildings offering larger-sized units, although without much amenities. On the other hand, the Marina Square is a modern development with amenities such as swimming pools, gymnasiums, ample parking and more, although it still needs to establish itself as a community, Walsh concluded.

On the whole, as the experts are yet to arrive on a common ground about rentals, it is for market forces to decide them.

1 comment:

Ahmed Salman said...

If these apartments are costliest then they should be different from others. They have very awesome location and wonderful design. They are really like heaven on earth they can easily attract any one toward them. The rent of these apartment is really costliest but tenants are still waiting for their completion.