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Sky-high rents in Dubai – prices in parts of city top Abu Dhabi

Rents in certain areas of Dubai top those in Abu Dhabi
Rents in certain areas of Dubai top those in Abu Dhabi

Dubai rental prices are topping those in Abu Dhabi for the first time, a leading property expert has said.

David Dudley, regional director of Jones Lang LaSalle (JLL), told the CityScape Conference in Abu Dhabi that high-end rental property in Dubai, such as Palm Jumeirah and Downtown, was topping comparable locations in Abu Dhabi, such as Saadiyat Island.

He said he saw a maturing of the Dubai property market but said that some landlords were using Expo 2020 as an excuse to “jack up” rents by 15 to 20 per cent, which is unsustainable in the long run.

Speaking at a special JLL side-conference to discuss the UAE property market, Dudley said that JLL is currently engaged in a “major review” of Abu Dhabi’s Plan 2030, a huge blueprint to reshape the city over the next 16 years, including broad new boulevards leading from the city centre and a complete overhaul of some areas.

Dudley said the review is “a very complex exercise”, and includes reexamining the environ­ment, transport and infrastructure of Abu Dhabi. The final results are expected in the next few months, he added.

Reviewing a largely healthy Abu Dhabi property market, Dudley said that oversupply is one of the biggest challenges facing the capital.

“The government is finding ways to slow supply,” he said, but he added that a price correction was likely in any property market.

He said that the city has had to rework some plans to make them fit better with existing circumstances. For example, the planned revitalizing of the now rundown Mina Zayed port area had been reworked to move investment to areas where services were already in place, thereby saving businesses long delays in setting up.

Dudley was speaking on the first day of the three-day CityScape Abu Dhabi event at Abu Dhabi National Exhibition Centre. More than 25,000 people are expected to attend the conference.

sean@7days.ae

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