Property expert Alan Kaye, of Cluttons, tackles housing queries from Abu Dhabi Week readers
We are in the UK at the moment and will be moving to Abu Dhabi next month. How can I find suitable accommodation?
This is a question that we receive frequently. The obvious answer is to start on the internet with sites such as Property Finder or Dubizzle but remember it is only a guide as the property market here changes so quickly that much of the information is often out of date.
In order to decide on an area it is important to ask where will you be working and if you have children, where will they be going to school.
Always try to negotiate a realistic housing allowance with your employer based on the information that you find and your requirements. Since there is often a gap of about three months between finding employment and arriving in the UAE, add around 10 per cent to allow for property price increases.
If possible try to take a long weekend and actually come here so that you can do your research on the ground. Remember you may be living here for a considerable time so research beforehand can save a lot of frustration when you do actually arrive.
I am currently living in Al Raha Beach and am very concerned that now there is no rent cap my landlord will increase the rent beyond what I can afford. My current lease ends in May. What do you suggest I do?
It is correct that there is currently no rent cap, however the government has announced that they will be introducing a rent index shortly.
Whist they have not as yet announced exact details it seems it will be similar to what already operates in Dubai in that Abu Dhabi will be divided into zones and a minimum and maximum price fixed for the type of accommodation in each zone.
Depending on what you are paying, the landlord will only be able to increase the rent by a fixed percentage. There will also be a rent committee formed for appeals.
In your particular case since the landlord has to give you 60 days notice (not two months) of any increase it will possibly be before the terms of the index are announced. I would therefore suggest that firstly you check what the current asking price for your type of apartment is. Based on this information you should try and have an informal discussion with your landlord to ascertain what they are thinking. I would also suggest you then contact a Real Estate broker such as Cluttons who can give you advice and show you possible alternatives so that you are prepared. From our experience so far most companies are keeping increases within the five to seven per cent range and responsible individual landlords will likewise be realistic.
I am interested in investing in property in either Dubai or Abu Dhabi. Can you advise me what you think is the best option.
In the last year huge interest has been shown in the investment property market in both Dubai and Abu Dhabi. There are fundamental differences between the two cities in that Dubai tends to be much more speculative but with far more choices and with Dubai staging Expo 2020 there is a lot of potential for investment opportunities.
Abu Dhabi is much more grounded and whilst showing both capital growth and high returns on investment it is much steadier.
In both cities there are certain areas where expats can buy and any reputable real estate broker, including Cluttons, can advise you on this. So the question that you need to ask yourself is are you looking for a spectacular but possibly risky investment or something more steady?
