Rental Hikes threaten Villa Life at The Springs, Dubai

The Dubai residential realty landscape can be broadly divided into two main types of dwellings: apartments and villas. Given the lower outgo of funds for tastefully appointed apartments, these had been in high demand during the tough economic climate that prevailed in the region. On the other hand, a section of the residents preferred to take the luxurious route out.

Families had traditionally flocked to areas along the Emirates road such as Mirdiff, Bur Dubai and other locales situated on the periphery. However, come recession time and a few amongst them began to take advantage of the falling rates to gift themselves an upgrade. Suddenly, the upmarket Springs community began to look very attractive in a sliding rental rate market. As a result, many a family moved into this popular community that is famed for its quality living standards.

Two years down the line, the economic scenario has changed and the balance of power has tilted in favour of the landlords. Given the new rental rules that permit dwelling owners to increase rents by pre-determined levels, a lot many owners are choosing to exercise their rights. As a result, many tenants are now reporting rental hikes in the range of DH20000 and more!

Those caught in this rising rentals scenario are finding themselves in a tough spot. Having become hooked to the improved lifestyle that comes with living in a villa, they are now finding the step down to apartment living a bitter pill to swallow. As a result, many have been found to be entering into closed-door negotiations with their landlords over the quantum of rent hike.

The villa rentals market is governed by a few key aspects. First, the villas at The Springs are still relatively cheaper than other comparative communities elsewhere. Second, even within the Springs communities, the rental rates vary from villa to villa. Chief among the rent influencing factors are:

The Land Lord: The most critical influencing factor in the whole rental negotiation is without doubt, the Landlord. Often, the quantum of the hike can be discussed and revised based on one’s personal equation with their landlord. 

Payment Schedule: When it comes to payment schedules, the lesser the number of instalments, the better are the chances of negotiating a favourable rent on one’s favourite villa. So, it’d be wise to keep those rental cheques to as few as possible.

Amenities & Location: Even amongst the community, villas that are lavishly appointed and are located at certain preferable places tend to garner a higher rental than others. Amenities like swimming pools and villas with a golfing green or lake view tend to be high on popularity and therefore command a higher rental.

All things said and done, it often boils to the individual negotiations that renters have with their landlords. In the end, if the quantum of hike is higher than what one can fork out, tenants have no option but to do a rethink on the renewal of their leases.