Popular Communities to focus on when looking at Rentals in Dubai

The roller coaster ride for the property sector in the Middle East continues. The real estate segment has been plagued by demand-supply constraints and infrastructural support issues. After months of price hikes, the global financial slowdown had finally began to affect the market sentiment. The bubble soon burst and the past year and half ended up bearing witness to some of the strongest negative revision in purchase and rental rates.

The current year began with a lot of promise. The authorities and regulatory bodies stepped in to settle frayed nerves and curb the friction between developers and buyers/renters. While the rentals in Abu Dhabi continued to be affected in the first half of 2012, the situation in Dubai appears to be coming back to normalcy. Data coming in from various sources seems to support this view.

Two of the most popular areas for prospective realty customers in Abu Dhabi continued to swing wildly on the inquiries charts. Both, Al Raha Beach and Al Reem Island kept trading places on realty observers’ indices. Apart from over supply, industry sources were also found to be pointing towards falling construction quality for the drop in prices.

The realty market in Dubai on the other hand, has been seeing better days than before. Residential communities in the New Dubai area continue to be in high demand among prospective buyers/renters. The prestigious Dubai Marina garnered the maximum votes in the popularity charts and this was reflected in the comparably higher rental rates being quoted there.

In the Villa segment, it was the Springs and Meadows communities that were seen garnering a high inquiry rate. Even with a sizable amount of villa stock available, rental rates were seen to be five to eight percent higher in 2012. Mirdiff and the Arabian Ranches community too saw rental rates rising in comparison to the previous year. The Apartment rental segment saw the Dubai Marina area and Downtown Dubai with the maximum amount of interest from prospective customers. Properties such as the Executive Towers and Emaar’s Greens commanded rates that were higher by an average of six to ten percent.

One common thread running through the realty sector has been that the demand and subsequently, the rentals were higher for established communities that had earned their reputation for quality construction and the overall management practices. 

Global Slowdown promises to be a blessing in disguise for the Dubai’s Rentals

The controversies that have been savaging the Dubai rental properties segment appear to be relentless in their onslaught. The origins of these developments can be traced back to about a decade or so. For long, Dubai had seen realty developments on an unprecedented scale. Both, the authorities and master developers were leaving no stone unturned in their efforts to transform Dubai into the pearl of the Middle East. No cost was too much, no concept outrageous. Pushing the boundaries of acceptability, Dubai seemed to be the dream that straddled the old and the new with total aplomb!

Trade and commerce too responded and brands, both big and small made a bee line for the Emirate. Tourism took off heavily, with resorts, leisure parks and other hospitality ventures tried to out do each other in both scale as well as uniqueness of experience. Dubai soon became the place to be seen in for everyone. Businesses, individuals, employers, employees, everyone; people were said to be taking the next flight out to Dubai.

Fuelled by this growing demand, infrastructure began to be drafted into place. An extensive road network began to be developed. Realty soon began the buzz word as authorities in a master move, opened property ownership to international investors. The sky was literally the limit after this. Property owners were devouring everything that the developers could throw at them. Luxury and opulence became the preferred calling cards of players and investors alike. Since not all owners would come to stay permanently, many decided that their prized possessions could earn them fantastic returns. The market for Dubai rental properties took off.

Many insiders were however starting to get worried. The economic climate was becoming harsher by the day and few doubted that a correction was in the offing. The only question on their minds was when! About two years ago, the first signs came calling and the Dubai rentals market bottomed out.

Developers and investors alike were panicking. The former saw their credit lines drying up and many projects had to be put on hold, some for indefinite periods of time. Investors on the other hand saw a significant chunk of their asset value getting wiped out overnight. Even the demand for properties on rent in Dubai slowed down drastically.

Quite a few controversies have emerged following this. Rental scams, foreclosures, etc. left no one untouched in the industry. Ultimately, the Real Estate and Regulatory Agency (RERA) and the other authorities had to intervene and bring in some semblance of order. The rules governing the realty industry consequently have seen a lot of refinement. This refined and inherently efficient system of functioning that has come about during a tough time should be seen as an unlikely boon.

With business being cyclic in nature, it is only a matter of time before things start to get better. When this happens, Dubai should be poised for yet another shot at the skies. 

Dubai rentals set to become pricier at properties along the beachfront

The realty market in most parts of the globe is governed by the rules of demand and supply. Dubai too has been no exception and it had enjoyed a decade of fantastic returns for property owners for over a decade. However, the global economic slowdown that reared its head about two years ago put a dampener on things and Dubai rentals had been plummeting for in the past months.

This scenario simply meant that it was a time for tenants to rejoice as they believed that the bubble had finally burst. Many claimed that the prices of properties for rent in Dubai had reached unheard of levels and that a price correction had indeed been inevitable.

The waxing and waning of fortunes however is cyclic in nature. Buoyed by corrective measures taken by the industry and strong support from the authorities, the prices are experiencing a recovery in some areas. This has been particularly observed by those seeking houses for rent along the beachfront in Dubai.

Many developments along the waterline have been quoting rentals that are higher by the tune of 10 to 20% over what they were in the preceding two years. The beachfront area is dominated by two premier developments. Other than the prestigious Jumeirah Beach Residences and the Shore Line Apartment community by Palm Jumeirah, the Palm Jumeirah Villas are the only beachfront properties.

With the demand supply coming into play, it should come as no surprise to note that the villas for rent were commandeering almost double the rental hike than their apartment counterparts. Luxury bargain hunters looking at a property for rent would be better served if they were to look at options along the Jumeirah Beach Residence. This is so as the total property stock is higher out here in comparison to that of the villas.

Demand at the exclusive Shorelines community settlement has remained relatively stable. Even within the community, a strong preference has emerged for beach facing apartments that command a higher property rental. Thus, there could be bargains to be had here if one were not too picky about having a beach view.

At the end of the day, it all boils down to personal preferences. This statement holds true even when one is looking at a property for rent in some of the exclusive developments in Dubai. Simply ensure that all dealings are conducted through authorised brokerage firms and the due diligence has been carried out.