Rents in Abu Dhabi are soaring on the back of a strong local economy and near 100% apartment occupancy levels.

New research by property specialist Asteco reveals that average rents have risen by Dh5,000-10,000 for typical one, two and three-bedroom apartments in the UAE capital since the fourth quarter of last year.

"Were seeing colossal demand for well-maintained, affordable properties with amenities like gym, swimming pool, and underground parking," said Asteco CEO Elaine Jones. "There is some new construction, but this is falling well short of demand. A better investment right now would be to put money into buying a home, but an Abu Dhabi freehold law needs to allow full ownership with the right to demolish, renovate, or expand the property."