Rent hike in Abu Dhabi; Expatriates in search of hinterlands

Rent hike in Abu Dhabi; Expatriates in search of hinterlands
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Abu Dhabi: Rents increase by up to 5% in Abu Dhabi, out of tune with the family budget of expats. With the increase in rents after a gap of 2 years, many people, including Malayalees, are moving to rural areas. However, the authorities said that the evacuees should give 2 months’ notice.

Rents have also risen as the government seeks ways to offset rising commodity prices. Many have added up to 5% of their current annual rent. The current price for a two-bedroom flat in the heart of the city ranges from AED 65,000 to AED 125,000.

With relocation to the suburbs, you can get better flats for AED 50,000-80,000. If moving to the hinterland, the average rate is around 38,000-55,000 dirhams. There are also those who rent out villas to accommodate smaller families. Residents say the cost has more than doubled in three years, but the lack of a pay rise has backfired.

As a result, many who used to live in high-rent buildings are moving to lower-rent, less-convenient older buildings. Officials said building owners must notify contractors 2 months in advance of any changes to the lease. Demand for this specialty has grown significantly as a result of recent corporate scandals in the UAE. The need for flats has also increased as foreigners working in the UAE bring their families on short vacations.

During the Covid period, rents were reduced due to the relocation of many families. Some building owners detained residents by offering them 2 months of free accommodation. But in the changed situation, in addition to canceling the benefits, the rent is also being increased.

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