Who is complaining of rent, price hikes in Dubai?

Overseas investors and new expatriates arriving in Dubai are finding property prices and rents affordable than other global cities and it is only residents who are complaining of these increases, opines a senior official of a property development company.

“Investors and new expats are not complaining as they see prices and rents in Dubai being lower than other cities. It is only the residents (people staying in the country for some time now) complaining of rent and price increases,” Ahmad Khalaf Obaid Bin Touq Al Marri, General Manager, Union Properties, told Emirates 24|7.

“We are witnessing a lot of investors coming here and buying property. They are back as they see prices far below the international level. Rents as well are lower than many countries, mostly if you see the prime areas,” he added.

Knight Frank's Wealth Report 2014, revealed in March, said that Dubai's prime luxury property market was much affordable than key global cities despite prices rising 17 per cent in 2013.

One could buy 146 square meters of prime property for $1 million (Dh3.67 million) in Dubai compared to only 15 sqm in Monaco, 20.6 sqm in Hong Kong, 32.6 sqm in Singapore and 25.2 sqm in London.

The UK-based real estate consultancy said though prime rents in Dubai were up 13.6 per cent in 2013, the second fastest in the world, lease rates were still 50 per cent below those found in London and New York.

Investors want answers

Asked if new investors took developers’ word for everything, Al Marri said that was no more the case as investors had become judicious, seeking answers on various issues.

“They are asking us about the material being used for construction, about sustainability, MEP (mechanical, electrical and plumbing), facilities and services offered etc. They are now more educated now and want answers,” he asserted.

The developer announced last year plans to launch of six new projects worth Dh1.5 billion which includes The Ribbon, a retail project and Green Community expansion.

Earlier this year, Union Properties and National Properties, a subsidiary of National Bonds Corporation, said they are developing the new phase of Green Community, which is expected to be completed by end-2015.

Follow Emirates 24|7 on Google News.