This morning I re-read the post about housing I had written in March and wondered how things could have changed so quickly in such a short space of time.
At the moment, anything under Dhs100,000 won't get you very much if anything at all in the capital city. In March, Dhs200,000 or Dhs250,000 might have secured you a nice villa in Khalifa City, Khalidiya Villas or Mangrove Village. Now you will be offered a 2-bed apartment on the outskirts of the city in an area such as Manasir for the same price, and last week an agent was offering a small 2-bed apartment in the city for Dhs200,000, but without windows in the living room! Without a doubt the situation has reached a point where people may have to think twice about coming to Abu Dhabi if their company does not provide housing.
Some families have left in the last couple of months because they can neither find suitable accommodation nor school places for their children. Many resort to renting government housing outside the city in areas such as Shahama, Rahba, Bahia, Bani Yas, Shawamek etc. These houses may be cheap but it is also illegal to rent them and the tenants can be evicted by the Municipality without any recourse to justice. Some landlords have also started dividing villas, making either 2 villas out of one or making apartments out of the three floors of a villa. This is also illegal unless special written permission is given by the Municipality and tenants once again have no recourse to justice if they are asked to vacate those villas/apartments.
So, what are the options? For those considering contracts in Abu Dhabi at the moment, the best solution would be to put pressure on companies to provide housing, not an allowance. Giving allowances has led to this problem, as many companies will pay huge allowances to secure the most qualified and skilled people for their projects - usually in the fields of oil, finance or construction. It is the landlord's market and many are doubling their rents as soon as tenants vacate. Failing that, a company usually provides a month in a hotel apartment or company villa while the new employee has time to search for suitable accommodation. How adequate this timeframe is will totally depend on the housing allowance given to you, or the amount you are prepared to add towards your allowance to ensure you get a place to live.
It is not a pretty picture at the moment for those looking for accommodation in Abu Dhabi. Some people are lucky; they are in the right place at the right time or their companies give them huge housing allowances. But for most people the search can take weeks or sometimes months, and depending on the number of boxes you want to tick in your personal wish-list, it could take longer.
Showing posts with label Accommodation. Show all posts
Showing posts with label Accommodation. Show all posts
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
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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