Finding somewhere to live

One of the main problems for both new arrivals and current residents in the past year or two in Abu Dhabi has been finding accommodation within their budget. Some companies provide housing with the contract, others provide an allowance towards housing, and still others give an 'all inclusive' salary, out of which you find and pay for your own accommodation.

The main problem in recent years is that there are not enough housing units to accommodate the number of new and current residents. This has meant that many new residents have had to spend weeks or sometimes months in hotel apartments or temporary housing belonging to their company(if this is available) before finding suitable housing. In some cases, families of the main earner may have to stay in their home countries until a place is found.

The reason for this problem: the rapid growth of Abu Dhabi in a short amount of time leading to a huge number of new residents. The construction industry is not able to keep up with the current demand and large multinational and national companies are prepared to pay over the odds for accommodation to attract high level, experienced personnel to their companies. It's a problem which is not going away in a hurry.

Five years ago it was not unusual for a family to be able to afford to live in a villa on the island with a back yard or garden and possibly even a shared pool. Off the island in areas such as Khalifa City, a pool or large garden was almost gauranteed. Nowadays, most families who are new to Abu Dhabi have to live in apartments on the island and pay much more for off-island villas if they are available. In the city, areas such as Khalidiya Village, Bateen, Muroor and the Corniche can cost a minimum of 250,000 dhs, and some near the Marina Mall rent for about 650,000 dhs per year. Villas off the island of Abu Dhabi in areas such as Khalifa City, or other popular spots such as Sas Al Nakeel, Bain Al Jessrain, Seashore Villas or Mangrove Village can cost anything from 190,000 dhs to 250,000 dhs and above for a four bedroomed villa.

Apartment rentals vary too, with some parts of the city being typically more expensive than others. Areas such as Khalidiya, Corniche, Bateen, Mushrif and Manasir are either near the sea, or they are more sought after because they are quieter, have more parking availability or have buildings which are only 4 - 12 storeys high. A three bedroom apartment in these areas can cost anything from 95,000 dhs to 180,000 dhs depending on proximity to the sea and the facilities in the building. In the city centre in locations such as Hamdan Street, Electra Street, Najda Street and Falah Street (Passport Road) the rent will be slightly less but parking is difficult to find and traffic is bad at peak times.

There will be some relief when the new buildings on Reem Island are available for rent. Expats who bought there will be able to enjoy either rent free living in their own apartments, or a very good rental income on their investment. However, the first of these will not be ready for at least another year, and according to a recent article in Gulf News, Abu Dhabi is already short 20,000 housing units for the next year.

If you are in the process of negotiating a contract to come to Abu Dhabi, be sure to address the area of accommodation very carefully. The best option is to have the company provide you with accommodation, as they will absorb the increases as the rent goes up. However, many companies are now avoiding this because they are having problems both finding and keeping accommodation. If you are responsible for sourcing and paying for your own housing, try to get the best possible deal now, or include an agreement in your employment contract related to housing increase. The rent cap was fixed by the government at 5% for this calendar year. This was only for current tenants. If you are a new tenant, a landlord can charge any price and will always find someone who is willing or desperate enough to pay whatever is asked - the age old issue of supply and demand.

A website I came across recently which might be useful is http://www.2rentuae.com/

Note: The UAE dirham is fixed at a rate of: $US1 = 3.68 AED

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