Changing regulations, the removal of rental price caps, and demand outweighing supply are all responsible for Abu Dhabi’s escalating residential rental yields, Christopher Taylor, CEO of Abu Dhabi Finance said on Saturday.
Taylor said in a statement that his organisation has already started to benefit from the upswing in the UAE capital’s burgeoning property market, experiencing a 10 per cent growth in their loan book for the first quarter of 2014.
“We are starting to see a rapid pick up in the big construction, infrastructure and industrial projects coming on stream as part of the Abu Dhabi Vision 2030,” said Taylor. “Residential rental yields in Abu Dhabi have increased recently and it’s important that these remain at a sensible level to avoid a surge in short-term speculation and unhealthy levels of inflation.”
According to global real estate services adviserCBRE, residential rentals in Abu Dhabi for the first quarter of 2014 have grown by 10 per cent, while housing units in off-island locations saw higher rent growth at 14 per cent.
It all points to an increasingly attractive market for investors, and one which Abu Dhabi Finance will look to capitalise on as it prepares to play a central role as the Official Mortgage Provider at Cityscape Abu Dhabi, taking place from 22-24 April at the Abu Dhabi National Exhibition Centre (Adnec).
Abu Dhabi Finance will be joined by four other banks offering competitive mortgage rates and advice at the three-day real estate event.