Rents in UAE state Abu Dhabi have soared by nearly 50 per cent in the space of just 12 months.
According to newspaper the Khaleej Times, a new report shows demand for quality apartments is now outstripping supply in the state.
The publication says research by property experts Asteco shows rents have shot up by 49 per cent in the last year.
As cited by the Times, the report reads:
“The most notable movement comes in the two-bedroom unit category with 66 per cent increase in rents over the last year.”
Growing incomes from record oil prices are thought to be behind the surge in real estate value in the Emirate, which saw a 167 per cent population growth from 1975 to 1985 thanks to the industry.
Regional property experts Sorouh say:
“The Abu Dhabi real estate sector has seen heightened activity over the past two years with numerous developments undertaken by the government.
“In 2005, the sector contributed five per cent of Abu Dhabi‘s GDP and in terms of employment is second only to the general trade industry.”
Sorouh adds a lack of taxation on revenues or capital gains or transactional tax means real estate remains an attractive proposition for foreign property investors.