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. 

Service Fees create ripples in the Dubai Rental Scene

A recent poll by a popular media entity in the region threw up some interesting insights into the preferences of Dubai residents. Questioned over the pinning of responsibility of paying off the service charges to master developers before agreeing to a Dubai rental, over half of the respondents decried that it rested with the property owner and not the tenant.

Almost a quarter of the remaining respondents opined that landlords that default on the payment of the service charges must be stopped by the Real Estate Regulatory Agency (RERA), which is the property regulator in the Emirate. Master developers, who have been instrumental behind the construction of the property, too must share equal responsibility in preventing such unscrupulous landlords.

The payment of service fees snowballed into a huge firestorm that threatened to engulf all those involved. A Dubai rental property is often the most preferred choice of accommodation for the expat population that throngs to the Emirate and has made it the envy of the world. With a region that is just showing slivers of hope of pulling it out of the property recession, that has afflicted Dubai, in the past few years.

Progressive rental property companies like Move in Dubai, have been instrumental in educating prospective tenants on the pros and cons of renting a property in Dubai. Apart from having an extensive range of exquisite properties to suit most requirements in the region, they also specialize in guiding tenants through the entire process with special attention on getting the documentation in proper order.

One can get in touch with them for queries related to Dubai property rentals through their website: http://www.moveindubai.com

Living in Dubai is Now Affordable!

Dubai is recognized as the commercial and tourism capital of the UAE and is globally regarded as one of the most sophisticated, futuristic and a cosmopolitan city in the world. At one point of time we use to think living in Dubai, is it quite possible? However, now it’s the shining times for expats as well locals from neighboring cities to settle down in Dubai due to the sharp fall of rentals in Dubai.

A dizzying rent decline in Dubai across all areas and sizes makes Dubai as one of the most affordable cities in the world. Dubai rentals have come down by sizable amounts and this is an opportune time for leasing property. In the Palm Jumeirah rents have dropped by 6%, at the Jumeirah Towers by 10% and at less up market places like the International City, rents have declined by a whopping 22%. This trend is also being reflected in commercial properties in Dubai. At the Big Bay property rentals have dropped by 8% while at the Dubai Silicon Oasis rentals have dropped by 20%. The Burj Dubai that is currently one of the most recognizable buildings in the world has 9 freehold residential tower blocks offering one, two and three bed roomed options at affordable rates. Luxury apartments and penthouses with all modern amenities and state of the art technology are all available at reasonable rates. Rents are falling irrespective of quality of property or location of property. Even prestigious up market areas have'nt been spared. These falling rents make it more viable to rent a house rather than buying a house.

Move in Dubai a reputed real estate company, deals in all kinds of rental properties in Dubai. They have huge property portal located at prime locations in Dubai. Their services and hard work will help you to get your ideal rental property in Dubai.

For details click on: www.moveindubai.com

image credit: apartmentsuae.com