Dubai: Dubai’s inhabitants are in the mood to upgrade – and this is appearing in residential rents at key areas. With occupants moving to new – more spacious – homes, rents at some of the budget-friendly locations, like, Discovery Gardens are going under additional pressing factors.
In fact, Discovery Gardens has recorded a rental fall of 22% in the year to end-March. Listings show one-room apartments there at only Dh30,000, for some landlords permitting a couple of month lease-free stays.
Even a few more upscale surroundings – like JLT and Dubai Marina – have registered a 16% fall during this period, as per Core, the property consultancy. This has built opportunities for tenants to take a one-bedroom at a little upscale Dubai Marina tower for about the Dh55,000-Dh60,000 mark, whereas a JLT unit would be under Dh50,000.
“The COVID-19 led tenant migration from apartments to villas are collectively adding further downward pressure on apartment rents,” says the latest Dubai property market update from Core.
It’s different with villas
In the event that the tenant is exploring a villa, the current circumstance is that he ought to make up their mind fast. Particularly for the individuals who are focusing on a super-premium location at the Palm or Emirates Hills –both locations have seen rent rises of 10 percent plus over the last 12 months. The Palm has recorded deals of homes costing Dh100 million or more – however, the island’s rental contributions also are not having too much difficulty getting picked up.
These patterns confirm what’s been clear throughout the last two quarters. Any area or landlord offering open surroundings with some green (or sand, on account of the Palm) is what’s in demand as upgrades gather pace.
Move or stay?
Industry sources agree that particular rises are appearing in Dubai’s rental market, with the Palm as a perfect example. The two or three years when each area in the city was recording rent drops is at an end.
Whether to renew or move on will depend on quite a bit on what landlords are willing to offer. “Most continue to be willing to negotiate lower rents and flexible lease terms upon renewal to retain tenants,” the report adds. “This has led a large section of tenants to remain in their current premises as they have been able to achieve rental savings upon negotiations while avoiding the inconvenience and additional moving costs.
“However, depending upon landlord flexibility, tenants’ working arrangements, and financial situation, many have relocated to either achieve more space or considerable savings. We foresee apartment rents to continue softening over the remainder of 2021.”
Yet, year cheque payment choices are dropping, with three or six cheques the standard. Lease-free periods are still being used by many landlords, particularly those with new structures and apartments to fill. Free chiller is another huge addition for inhabitants who have chosen to take up new premises.