Abu Dhabi Introduces Rental Index: Expert Predicts Market Stability

Abu Dhabi's real estate sector is entering a new era of transparency with the introduction of its first official rental index. The move, aimed at providing clarity on fair market rates across the emirate, has sparked discussions about its potential impact on both tenants and landlords.

Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, offers expert insights into the implications of this new tool. "For properties that are currently priced above or below the market average, adjustments will occur to bring them in line with the index," Ratskevich explains.

According to Ratskevich, the index is likely to lead to moderate corrections rather than drastic changes in most areas. "While the rental index may help identify areas where prices are significantly out of line with market norms, it's unlikely to cause dramatic shifts in rental rates," he notes. "The rental index contributes to a more stable real estate market by curbing sudden and extreme fluctuations in rental rates,".

Ratskevich emphasizes that the index will be beneficial for all parties involved in the real estate market. "This transparency helps protect tenants from overpaying and ensures that landlords set competitive and fair rental rates," he says. "By providing a standardised measure, the index reduces the potential for unfair practices and promotes equity in rental transactions."