Time and again, there are reports in media that rents in Dubai have nose-dived, giving impression that it has been a tenants’ market now.
A recent article in Arabian Business takes this to next level, quoting Jones Lang LaSalle MENA’s Dubai Real Estate Market Overview, and claiming Dubai rents set to fall further across all sectors in 2010.
With an additional 24,000 units expected to be completed in 2010 and 25,000 units in 2011, there may be an emerging opportunity for both investors and financers in the Dubai residential market as it has already seen a significant level of pricing adjustment in 2009, he added.
The comments on the article were not that optimistic. One commenter wrote:
RERA when are you going to update your rental index and calculator? My landlord has taken advantage of your outdated index to push for a further 20% increase. The landlord’s agency Al Yousuf R/Estate insists that it is legal to increase the rent
Another person was of the opinion:
I have had the good fortune of being slapped with a 20% increase in rent last June because of the hallowed RERA index. Another 20% increase is staring in my face in this year as my rent is still below the RERA index. I am forced to stay put in the same accomodation because of my childrens’ school and because i have invested heavily in furnishing the 3 BR flat I live in. Tearing them down and putting them up in a new place will involve quite a bit of effort and expense.
I have spend almost 8 years in this place. Yes, I have made up my mind to relocate to another GCC country as soon as the situation permits and not to look back at this beautiful city where most people /agencies are interested in fleecing the residents in one way or the other.
Note: I stay in one of the NAKHEEL managed properties.
Whether the market favors the tenants or its still driven by the landlords/owners, only time will tell.