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Abu Dhabi: The boom in Abu Dhabi has left thousands scrambling to find properties to rent in a city that is bursting with projects and construction.
Property consultant and director of Global Hills, Diana Stebbins, says, "The solution will be found in 2009 when people can buy and move into accommodation."
For the time being, villas are being divided into four and sometimes six partitions to accommodate bachelors and dual occupancy units.
The demand for housing was recognised by developers and landlords, who seized the opportunity to spike their prices.
Those seeking accommodation are often scanning through exaggerated property newspaper ads and falling victim to paying the illegal Dh100 viewing fee.
Abu Dhabi's Habban property consultant, Tamara Trinka, has observed the housing crisis develop.
"The last two years have been the worst. Some places have doubled in rent at minimum. What's shocking is that landlords don't have nearly as much property to rent as in previous years, and the property that does become available is gone within 24 to 48 hours," says the resident who has lived in Abu Dhabi for 13 years.
From bad to worse
"People come here expecting to rent Western style property with their salary, but they don't get anything near what they're expecting... The biggest frustration is that you have a client with a budget and a property with a price that just don't match," Trinka says.
The Abu Dhabi Chamber of Commerce and Industry has clearly stated the housing situation is bad and is going to get worse. "By 2008, housing facilities needed to meet the demand in Abu Dhabi will be 13,000 units," the Chamber of Commerce announced in a statement.
At first sight, the construction throughout the city and the endless campaign ads by development companies gives a sign of hope of the supply and demand levelling out.
But a closer look shows these properties are hotels, businesses or housing mostly for the upper class who can afford to pay 15,000 or 20,000 a month for a "modern" one-bedroom flat.
The average foreigner, who moves to Abu Dhabi, expects to live in a decent apartment and stash away the extra money in a savings account.
Based on an average income of Dh12,000 per month, it's almost impossible to save. What is being earned is being spent. This situation makes it nearly impossible for single-income families.
Your comments
I may have to think of finding a job elsewhere as whatever I earn I spend here. When I was hired, I was given the impression that Dh60,000 could get you a good accommodation. I thought that I would be able to save some money from the housing allowance, but unfortunately I ended up paying more from my own pocket.
Emad
Abu Dhabi,UAE
Posted: November 12, 2007, 15:00
It seems that housing problems in Abu Dhabi are increasing daily. Many people are not getting flats from the Khalifa committee. Some people also charge huge rents to sublet flats that they got from the Khalifa committee.
Hai
Abu Dhabi,UAE
Posted: November 12, 2007, 14:56
I have been here for six years now, but with the way things are shaping up, especially the rising cost of rents, I am very doubtful of my future here in the UAE.
Javad
Abu Dhabi,UAE
Posted: November 12, 2007, 14:49
The situation is worse in Musaffa area, which has only one residential block. Here, it is very difficult to find a house you can lease for one year.
Abudhabi resident
Abu Dhabi,UAE
Posted: November 12, 2007, 14:43
I have been looking for a flat, but the rise of rent prices is amazing. The one we can afford is through the Department of Social Service, but they are very difficult to get, with more than 1,000 people waiting to rent one flat.
Abu
Abu dhabi,UAE
Posted: November 12, 2007, 13:22
I am working as a receptionist and my husband is a storekeeper. When we tried to find a small room to rent, it shocked me to know that the price is the same as my salary per month!
From a reader
Abu Dhabi,UAE
Posted: November 12, 2007, 08:52
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