[lorenzo]

I am an expat resident of Abu Dhabi for 10 years, I'll try to answer your questions.

Housing is the achilles heel of the Abu Dhabi expat community.


Housing in general... is unbelievably expensive... and despite the offer of free housing as part of one's expat package, many expats are turning to paying a supplement to upgrade their accommodation to what they deem to be an acceptable level.. and landlords know it. The matter is further complicated by an unscrupulous and unregulated "real estate" industry here. Agents looking for exclusive listings and landlords who ask for the "sky" for an apartment. Discrimination based on skin colour is the norm. Expect the first question from an agent to be "where are you working?" because they all know your employer's housing allowance conditions (its common knowledge what employers are offering as housing allowances and .. their ability to pay - onetime? or with great delay? -sometimes three or four months.. and this can get factored into the price).

First about flats - new ones versus old ones. New ones tend to be concentrated in the downtown core but there has been a trend of late to build further out. I've observed that the cost per square meter for newer apartments is significantly more expensive than ever before -much of it due to the incredible inflation in the price of building supplies - especially cement. Another trend is to add amenities such as a fitness center and/or swimming pool to the top floor of an apartment building, or underground parking to the bottom in an effort to compete and justify a higher cost per square meter and smaller apartment.. yet letting "apartment finishing" slide. Parking is a HUGE issue in the downtown core.. especially bad in the Northeastern sections of the island... If you plan on using a car, then make sure you sort out Parking arrangements. If you plan on relying on Mass transit to get around, then you can count on standing in the heat to fight for a taxi... while cheap, recent increases in petrol prices (30%) are putting pressure on cab drivers.. some of whom are packing it in. Not sure how that will play out over the coming months. Bus system is best described as antiquated and disorganized.. don't know anyone who uses it or knows the routes / schedules.

As for older flats, these tend to be more spacious, cheaper on a sq meter basis and are often but not always more attractively located. Areas to explore include Manasir and Karama (typical expat communities that are located outside the downtown area in low rises). But the downside to them is the unpredictable nature of maintenance. Many local owners simply hire expat property managers at a flat fee and ask them to look after the property for them. As a result, many property managers have little incentive to properly maintain properties and simply pocket the amount. This isn't always the case. More and more owners are realizing the need to protect their "investment"... learning the hard way when people no longer want to stay in their apartments so they lie empty ... Property maintenance when it is supplied, can be and often is late or carried out by less than competent repairmen. Expect shoddy service or to have to even do it yourself. This trend is changing for the better but still has a long way to go.

As for villas, the cost of these is being driven up well beyond the rate of inflation each year and thus is only within reach of a few expatriates. Likely cause? The growing Local population is outstripping the supply... so its simply supply and demand putting pressure on the villa market. Finding one on an expat package will likely mean getting an older unit. Another trend observed of late, is the "gutting" and "reconditioning" of older apartments to modernize them.. yet there's a need to be careful. Building standards for structures more than 20 years old are suspect - this was a time when there was a building boom here in Abu Dhabi. The demand for villas and apartments was so high that standards for building projects slipped and "ways to cut corners" was the order of the day. So while a villa or apartment may look better, it may be structurally unsound or "rusting" from behind the walls.

Villas prices today? Minimum 120,000 (small three bedroom) ... however there is a move to offering villas complete with spacious gardens and garages off the island for far less.. I've heard prices of 80,000 to 90,000 dh for these.

Apartments?
three bedrooms - atleast 90,000 dh
two bedrooms - atleast 70,000 dh

.. there may be cheaper units on the market due to their state of repair, length of time that they've been vacant, or just their unusual location.

Hope this helps.
Lorenzo