Employee Relocation Will Cut Over-Supply In Abu Dhabi's Property Market
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Employee Relocation Will Cut Over-Supply In Abu Dhabi’s Property Market

Employee Relocation Will Cut Over-Supply In Abu Dhabi’s Property Market

Abu Dhabi’s residential property market could see new demand as the deadline for employee relocation ends today.


Abu Dhabi’s property market is set to receive a boost as the emirate enforces a new employee relocation programme from September 1, according to a Cluttons property market report.

Under the new ruling, which comes into force today, all of Abu Dhabi’s 20,000 public sector workers are required to live in the capital.

The regulation is expected to particularly increase demand in the capital’s submarkets that provide easy access to Abu Dhabi Island and also offer the same lifestyle facilities as Dubai, said the report.

Rents at Al Raha Beach have already risen by 15 per cent during the second quarter, Cluttons said.

“This rise has been fuelled in part by tenants wishing to secure suitable accommodation ahead of today’s deadline and also by new job starters moving to the capital, particularly in the education, healthcare and hospitality sectors,” said Steven Morgan, head of Cluttons Middle East.

The Abu Dhabi government’s plan to step up expenditure will also have larger effects on the property market. The emirate’s executive council plans to inject Dhs330 billion into the economy over the next five years, which is expected to boost the UAE’s FDI. This in turn will lead to increased business and a rise in employment, the report said.

The boost in employment rates coupled with the government’s relocation mandate is expected to reduce the problem of oversupply in Abu Dhabi’s residential market.

Demand for housing in Abu Dhabi is already on the rise with average capital values for apartments up 13.2 per cent in the first half of the year. Predictably, high-end apartments continue to find favour among tenants, said Cluttons.

Average prices for Reem Island apartments rose 15.9 per cent during the first half, more than double the overall growth rate of 7.3 per cent across the capital.

Villas too registered a growth in capital value, up 22 per cent in the first half of this year, owing to the strong performance in submarkets such as Saadiyat Island. Al Reef was the strongest performing submarket during the period, registering growth of 15.1 per cent.


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