Abu Dhabi Week talks to the experts about keeping accommodation costs under control
Inexpensive housing in Abu Dhabi may seem like a misnomer. Every day in the press we hear of housing costs creeping towards the levels of 2008 and now without the rent cap people are getting even more worried that they will be placed in a position where they cannot afford to stay in their current accommodation – although it has just been announced that there will be a property rental index introduced shortly.
In a perfect world, everyone would love to live in a dream villa or apartment with wonderful views and a pristine beach on their doorstep. Unfortunately, this is not realistic for the majority of people.
Some are already evaluating whether moving to the UAE was such a wise move, financially, bearing in mind that many people arrive with the hope of making a financial cushion for later life. There are, of course, solutions providing that you are sensible.
The first thing to do when searching for housing is to evaluate precisely what size of accommodation you need. Many times clients say that they need a three-bedroom apartment even though there are only two of them. Usually the reason is to have extra space for visiting friends and family.
However, the cost between a really nice one-bedroom and a three-bedroom could be as much as AED 100,000. You could afford to put the family up in a five star hotel and still have change!
There are also other key issues to take into account. Accessibility to place of work is of course important and if you have children you want to be close to a school. Remember you could lose at least an hour or more a day in travelling so this should be taken into account.
Also, the proximity to convenience stores is important, as you do not want to spend half an hour or more on a journey to buy a few basics.
Another important factor is to use a reputable real estate company and an actual agent who can understand your needs and with whom you have a good rapport. This is especially important when you are on a limited budget but also have various requirements.
One of the peculiarities of the Abu Dhabi real estate market is that very little property is exclusively with only one agent. Having said that we all have properties that are exclusive to us. For instance, Cluttons have a beautiful one-bedroom apartment near Mushrif Mall for only AED 70,000 and studios in the city for around AED 65,000. We also have one-bedroom apartments at Al Raha Beach for AED 89,000 with access to a pool and gym. These are available only through Cluttons.
There are of course other areas worth researching that offer particular good value at the moment. On Al Reem Island it is still possible to find a two-bedroom apartment for under AED 100,000. If you work in Dubai then two communities just off Sheik Zayed Road – Al Ghadeer and Hydra Village – are both a consideration. In Al Ghadeer, which is in the emirate of Abu Dhabi but less than 25 minutes from Dubai, a two-bedroom townhouse starts from AED 65,000. Hydra Village, which is between Abu Dhabi and Dubai, features two-bedroom villas from AED 75,000. Both communities offer exceptional value for money.
In Khalifa A it is possible to find a four-bedroom villa for AED 140,000 or at the new Al Rayyana development a beautiful one-bedroom apartment from AED 70,000 and a three-bedroom apartment from AED 139,000. At the moment, the developer is doing a special promotion so the tenant does not need to pay a commission. Furthermore, the rent can be locked in for three years at a five per cent charge. So you don’t have to worry about rent increases!
In Khalifa B a four-bedroom villa may start from AED 120,000 and in Mohamed Bin Zayed AED 110,000. Both of these areas are a relatively short drive to schools and shopping malls and offer considerable savings.
One of the most important considerations is to ensure that the accommodation you acquire is “legal”. This means that the developer or landlord has received the proper municipality approval for the property that you are renting. This is normally confirmed by the issue of a Tawtheeq municipality property registration, but there are also other documents that can prove legality. Do not be afraid to ask and if in doubt either walk away or insist on paying monthly. At least in this way you would be mitigating your losses should it all go wrong.
Again using a reputable real estate company is the key to making the right choice with as few problems as possible.
