Demand Is Not Decreasing or Rental Prices Are Not Stabilizing During the Summer Weeks
Tenants in Dubai who intend to move should act quickly because this summer’s rental gains are not expected to slow down. In fact, property owners are raising their demands and sometimes even raising them within a short period of time. As Dubai’s residential rental, market moves closer to a full recovery, this could gain more traction in September.
Estate agents advise tenants to proceed if they encounter a rental demand they believe they can meet. Even relatively affordable areas like Jumeirah Village Circle are becoming more expensive. A one-bedroom there now rents for about Dh53,000 versus the low Dh40,000s a year or longer ago. Depending on the construction, the age of the property, as well as other factors, the price of a two-bedroom would exceed Dh90,000.
So, is accepting a higher rent increase from a current landlord preferable to looking for a new place to live? Liam Dawett, Leasing Manager at Betterhomes, said that tenants frequently renew based on convenience and the rise in the rental index set by RERA (Real Estate Regulatory Agency). “It’s typically less expensive than the cost of signing a new contract; however, in some areas, landlords are asking for amounts that are significantly higher than what was feasible a year ago.
Fresh and Desirable Areas
As more homes & projects move past completion later in the year and, MBR City will attract a lot of attention. Today’s visitors to Dubai Creek Harbour tend to be younger people and people who have only recently moved to the area. According to data from Betterhomes, a one-bedroom apartment just a high-rise group is leasing for about Dh68000. In addition, a two-bed generates asking rentals of Dh102000.
Quickest Growth This Year
Nobody should be surprised that Downtown Dubai. As well as the Palm has experienced the largest rental increases in the year so far, ranging from 25 to 30 percent. In fact, a few of the super-luxury homes on The Palm’s most recent leases saw rents rise above their highest levels from that year.
However, JBR, which is in third place, has one-bedroom units with asking rents of Dh94250. In addition, two-bedroom units at Dh160000 there. Property values in JBR have historically operated at a small discount to those who are in Dubai Marina. That gap appears to be closing based on the year-to-date run-up.
“These three core areas have already shown the highest improvements in the first half of 2022. But this has been due to the increase of people from of the interest the Expo helped bring to the city,” Dawett said. “Plus, the overall security factor of ‘Dubai being the safest to be. Which increased sales from new residents.” A third factor is that such areas all have globally recognizable landmarks. So the price increase has also been due to capital appreciation.”