Landlords in Abu Dhabi are being forced to lower rents and offer special deals in order to attract tenants to their rental properties due to the increased number of new developments becoming available, according to a report by Tasweek Estate Marketing and Development.

The report stated: "These include the waiver of the annual 5% rental increase; acceptance of monthly and quarterly instalments; free unit finishing and renovation; waiver of electricity and water payments; and one or two months grace periods."

This trend is likely to continue as prices in the city fall further because of the steady increase of new units. There are more than 5,000 residential and office units planned to be introduced onto the market in Al Reem and the completion of various projects in the port areas during Q1 2012. Rents on Abu Dhabi Island have been sliding over the past two years.

According to the report, many tenants have relied heavily on the opening of Al Reem Island in order to take advantage of the potential drop in rental prices.