Dubai Realty segment readies itself for a second coming

The Desert, Leisure Options & Realty are the three most discussed things in Dubai. While the first two are tempting enough, it is the third and the final one that is going to be in focus today. High expat population, the welcoming nature of the locals, a progressive government and high quality infrastructure have all contributed into the transformation of Dubai. Over the years, this sleepy desert village has blossomed into a multi-faceted extravaganza that is unparalleled in the world.

There is one thing that everyone needs and Dubai is no exception to this – it is housing. Whether it is owned or rented, the realty market in Dubai is characterized by constant churn as the demand-supply equation changes. The past couple of years saw one of the worst times for the realty situation in Dubai. Prior to this, the rentals had been skyrocketing, fantastic developments were being announced and completed every other day and people were in a good mood overall. Then the economic crisis happened and the market bottomed out.

The Dubai property segment saw its fortunes being turned upside-down almost overnight. Rentals plummeted and even properties in hitherto prime areas were left waiting for buyers/renters.  This depressed state of affairs saw many a shakedown in the industry. Businesses folded up, tenants started defaulting on payments, and projects fell behind schedule and so on.

But as is the case with every industry, the slowdown too had to pass. Since the beginning of 2012, the realty scene in Dubai has been showing signs of a comeback. Maybe it was not to the levels of yore but definitely to a stage where it is profitable for all the stakeholders that were involved.

Leading from the front are the prime areas or those that have a sound backing in terms of quality construction, right sized accommodation stock, connectivity in terms of infrastructure and social surroundings, etc. The Dubai Metro is facilitating the development of new growth centres that is taking the load of the already saturated, existing locales. The authorities too are pitching in with a clarification on the existing rules, better enforcement, levying of stringent fines and other punitive measures.

All this activity is part of a confidence building exercise where everyone is meant to benefit. So the next time, one is ready to fly into Dubai, remember that things may seem to be a little tough, but they are only going to get better.

Dubai Authorities clamp down on rental housing irregularities

Dubai has had a long tradition of attracting all kinds of people through its doors. For decades, its growth engine has been powered by hordes of bachelors. It was these blue collar workers that flocked to the desert town and transformed it into the bustling megapolis that Dubai is today. Since then, even white collar workers have joined their blue collar counterparts and made Dubai their new home.

But, as Dubai takes its place at the top of the development charts in the Middle East, the authorities have been cracking down on bachelors that break the accommodation rules. They seem to be frowning upon the whole notion of ‘Sharing is Caring’. Now, the authorities have specified that blue collar workers must seek accommodation in labour camps that seem to have been setup exclusively for them. They cannot seek accommodation in the rest of Dubai.

White collar workers on the other hand are permitted to rent and purchase accommodation in Dubai provided they meet certain requirements. Overcrowding, sub-letting and other such practices are strictly prohibited. Families renting out a villa are prevented from renting it further to other families.

Bachelors on the other hand must avoid overcrowding in their rental accommodation. Only one occupant per bedroom is prohibited when an apartment is rented out to bachelors. Thus, only 2 occupants are permitted in a 2 Bedroom apartment. The same cannot be further let out to other bachelors. The Dubai Municipal authorities have clarified that bachelors are white collared employees. They are single and are living without their families or partners.

All these rules and guidelines however are pre-dominantly applicable to bachelors living in leasehold areas. Those living in freehold areas are currently exempt from these proceedings. Thus, they won’t be fined hefty amounts that go up to DH 50000.

So the next time you go hunting for a rental accommodation, make sure you avoid the above pitfalls.