Rental returns are under pressure in Abu Dhabi due to new properties coming onto the market and rental pressure from commutable Dubai.

Real Estate projects laid down in the boom of 2008 driven by demand from property investors are now being completed and handed over, with a surplus of new properties coming onto the market rental returns have dropped by 40% from the peak and are expected to fall further as new properties come onto the market.

With the first of the Abu Dhabi off plan boom properties now being delivered and more to come Many tenants are happy to commute from Dubai a little under an hour away and enjoy much cheaper rates putting pressure on property owners to be realistic on rental yields.

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