Abu Dhabi to Update Rental Index Quarterly and Provide Building-Specific Rental Values, Says Senior Official

Abu Dhabi, September 5, 2024 — Abu Dhabi will begin updating its rental index every quarter and eventually provide rental values for individual buildings, as part of efforts to boost market transparency and attract investment in the real estate sector, a senior official has announced.

Rashed Al Omaira, acting director general of Abu Dhabi Real Estate Centre (Adrec), said the emirate’s first residential rental index, launched last month, will soon expand to offer rental data on specific buildings, enhancing the precision of the information available to the public.

Currently, the index highlights rental rates for apartments and villas across Abu Dhabi City, Al Dhafra, and Al Ain, providing an accurate snapshot based on transacted Tawtheeq contracts.

“We are working towards providing rental values at the building level, giving more precise readings rather than just sector averages,” Mr. Al Omaira said. He emphasized that this initiative is part of Adrec's strategy to make the market more transparent and data-driven.

The move comes as Abu Dhabi’s property market continues to recover, supported by government initiatives such as residency permits for retirees and remote workers, and the broader growth of the non-oil economy. According to CBRE, average apartment and villa prices rose by 6.2% and 3.9% year-on-year, respectively, in the second quarter of 2024.

Approximately 1,800 new residential units are expected to enter the market by the first quarter of 2025, further contributing to the emirate’s robust real estate landscape.

“Abu Dhabi remains a promising market with a lot of demand,” Mr. Al Omaira said, highlighting the significant year-on-year growth in foreign direct investment, which has more than doubled, with investments from over 971 individuals across 75 countries during the first half of 2024.

Adrec aims to keep the market balanced by carefully monitoring supply and demand dynamics to ensure healthy occupancy rates. Currently, occupancy levels in Abu Dhabi’s residential buildings stand between 85% and 90%.

With new projects continuously being launched, such as Aldar’s Yas Riva on Yas Island and Bloom Living near Abu Dhabi International Airport, Abu Dhabi is solidifying its position as a leading global destination for real estate investment.

The updated rental index and the introduction of building-specific rental data are expected to enhance market transparency and attract even more investors to the emirate.