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Abu Dhabi’s tenant eviction law ‘unfair’

Abu Dhabi’s tenant eviction law ‘unfair’

Majority of Kipp readers disagree with new legislation that will make it easier for landlords to turf out low-paying tenants.

March 21, 2010 2:16 by

Abu Dhabi has seen a major undersupply of housing units in the last few years, thanks to which rental rates have surged upwards. However, according to a recent report by real estate advisory group Investment Boutique, the supply of units in Abu Dhabi is expected to increase by 17 percent between 2009 and 2012; the shortfall in supply of residential properties is forecast to drop from 40,864 units in 2009 to 29,720 units in 2012.

Also, Dubai rents have fallen dramatically – by up to 50 percent in some areas – due to the financial crisis, prompting many Abu Dhabi residents to shift to Dubai. “The rent differential between the two [emirates] has resulted in a significant proportion of cross emirate migration. If this trend continues then it will exert further downward pressure on prices and rents in Abu Dhabi, at least narrowing the difference between the two in the medium term,” said a recent report from property advisors Tasweek Real Estate Marketing and Development.

The report said that average rents and new leases in the capital have already fallen around 20 percent from their highs in 2008 to the end of 2009. Other analysts put the drop in rents at between 30-35 percent.

All these factors indicate that Abu Dhabi’s rental market is moving towards a more reasonable pricing, favorable to the tenant.

But does the new law concerning tenant evictions threaten to upset the balance? Or do landlords deserve a change in legislation?

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  1. Andrew on March 22, 2010 11:15 am

    Time to invest in canned food and shotguns.

  2. Miss Anne Thropic on April 5, 2010 2:28 pm

    I think I’ll get a bunch of my friends together and we’ll rent out a labour camp in Musaffah…


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