UAE rent hike impact: Tenants now becoming cost conscious
As house rents in the UAE rise, prospective renters are becoming cost conscious with location and facilities offered in buildings taking a backseat.
A survey by propertyfinder.ae, a real estate portal, reveals prospective tenants now are deciding to lease apartments based on rents.
The survey reveals the three important factors to be price, location and facilities for prospective tenants.
“Price seems to have the biggest impact on a renter’s decision to choose one apartment/villa over another,” Michael Lahyani, CEO, propertyfinder.ae, said.
“However, this is not to say that other factors are irrelevant. There were other features, which also rated highly in our survey, such as location and amenities. Access to on-site community facilities is likely to become increasingly important to tenants, as they look for ways to enjoy downtime without breaking the bank,” he added.
Armin Sheikh, an accountant with a private company, says: “I used to stay in a studio apartment in Marina. Earlier this year, my landlord hiked my rent and so I decided to move to Dubailand where I got a one-bed at a lower rent.”
He adds: “I have a set budget for housing and I didn’t want to overshoot it. Hence, I moved out. I even saved on the commission as the unit was leased directly by the developer. So, in fact, I did save.”
In January, Jones Lang LaSalle (JLL), a global consultancy, said nearly 28,000 new housing units are likely to be completed in 2014 in Dubai.
Dubailand will account for almost 33 per cent of the announced future supply, with around 16,000 residential units expected before the end of 2016.
Other areas that should see major residential completions are Dubai Marina (4,200 units); Dubai Sports City (3,700 units); IMPZ (3,000 units); Business Bay (2,700 units) and Dubai Silicon Oasis (2,600 units), JLL said.
The global consultancy has predicted rent increase to continue in Dubai, but at the lower pace than 2013 when rents jumped by 17 per cent.
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