The UAE Property Market – Dubai Real Estate for Rent10 Nov 2017
Regardless of whether you are interested in Dubai real estate for rent or houses for sale in the region, Zawaya Property, a Dubai-based real estate agency, can provide you with the necessary information and guidance to ensure you are able to make well-informed decisions regarding buying or renting property in the area.
For many expats in Dubai, the subject of house rents is a common one, as a high percentage of expats choose to rent rather than buy property during their time living and working abroad. Whilst owning a house may be a great asset, for many ex-pats on short-term contracts the risk of fluctuations in the property market may be simply too great. This leads many to make the decision to rent, even thought they recognise the negative aspects of renting against owning a home in the longer term.
Rental Price Negotiations
For most people, the critical aspect when renting a property is the level of the rent. Rental rates in Dubai have been very stable for the past few years and some rents have even dropped a little. This means that as rental contracts come up for re-negotiation, in many cases landlords will be looking to increase rents slightly to start the process of bringing them back up to the previous values. They are also more negotiable in terms of the number of payments due each year. Historically, landlords in Dubai took one cheque for the annual rent.
Nowadays, four quarterly cheques is the norm, and sometimes even monthly payments are negotiable, as in other developed real estate markets in Europe or the US.
Dubai vs. Abu Dhabi
Comparing the markets in Dubai and Abu Dhabi, it would appear that Abu Dhabi lags behind Dubai in terms of market performance. Added to this, Abu Dhabi also reintroduced the 5% rental increase cap at the end of 2016. The two areas also have different dynamics in terms of their respective property markets. Dubai tends to have been impacted more by the recent stagnation in economic growth in the region, by redundancies and weak jobs growth. Abu Dhabi tends to have been impacted more by the low levels of public spending, low oil prices and an abundant new supply of property onto the market.
The general opinion on the outlook for the property market in Dubai for 2017-18 is one of increasing stability. This will be reflected in both property values and rental values. For most expats this will again bring into focus the relative pros and cons of renting versus buying. If you are interested in buying or renting property in Dubai, please contact Zawaya Property.