Abu Dhabi's continued immigration growth and changing demographic means that, with building criteria kept in line with the emirate's Plan 2030, demand will continue to outstrip supply for the next five years, albeit with a more manageable ceiling on rental growth rates. Between 2005 and 2008 Abu Dhabi's population grew by between 6 percent and 7 percent annually. According to the government's estimates up to 2030, this should continue, averaging out at approximately 5.4 percent per annum. Colliers International figures place current residential vacancy rates at an extremely low 1 percent. This has resulted in rental growth rates of up to 65 percent between the fourth quarter of 2007 and the same period in 2008. Prices for 2008, however, have increased by an average of 89 percent, meaning that rental yields have fallen slightly as percentage returns on investments. In comparison with other cities in the GCC and wider region this places Abu Dhabi at the top end of the market when it comes to rental and purchase costs. The average rental cost in US dollars per square metre in the UAE capital is $450. This tops equivalent charges in neighboring Dubai where the average is $420. Doha, the next most expensive city, is $285, while prices in Cairo and Riyadh average out at $63 and $60 respectively, according to Colliers figures. The average prices for sales also place Abu Dhabi at the top of the chart. Per square meter prices are estimated at $6,500, compared to $5,420 for Dubai, $4,670 for Doha, $1,006 for Cairo and $655 for Riyadh. Conversely the rental yields for property in the city tend to be lower than all the other comparisons, save Cairo. Rental yields in Riyadh are the highest, averaging 9.2 percent - although the Saudi city also has the lowest occupancy at the top end of the market, at 92 percent. The price differentiation between rental prices and the cost of buying means that yields in Abu Dhabi stand at an average of 6.9 percent. A report by Citigroup on the region's real estate markets predicts that demand will continue to exceed supply into 2013. Citing that demand is fundamental and excludes speculative investment and a current undersupply, according to Abu Dhabi Chamber of Commerce and Industry figures, of 50,000 units, the report predicts that even if household sizes remain constant - which appears unlikely given the demographics of immigrants to the city - existing demand will only be met by the fourth quarter of 2012.
