Sunday, 7 December 2014

How to Buy Residential Property in Dubai?




You may be going to buy home abroad or willing to buy your dream home in native country, buying property has always been a huge financial commitment. In order to end up your deal successfully buyers must consider few basic things, especially if you are planning to buy overseas. Good understanding with market trends and standard rules to buy assets is necessary.

Boosted up from small fishing village, Dubai has got itself recognized among well-developed cities across the globe. State of the art infrastructure facilities, dynamic lifestyle, adventure and entertainment along with luxury developments have amplified city image as desirable place to live. The tax free lifestyle, entertainment and luxury dragged everyone towards this Middle Eastern hub city for holidaying and relocating. Initially foreigners were only allowed to rent accommodation unit to live there. Having considered the great interest of foreigners in emirate estate market, State Government introduced new legislation in year 2002. The free hold property law empowered foreign buyers possessing great in buying property in Dubai. Later, specific neighbourhoods and projects are designated as freehold areas to facilitate foreign buyers.

Whether to buy an off-plan or ready now unit?
Property transactions are mainly subdivided in two major types i.e. off-plan and ready now. Buying an off-plan unit in Dubai means unit does not actually exist, rather the whole construction and floor plan is available on paper. However, a model unit exists to display design and quality of work, the project developer is offering. Usually developers allocate specific date to deliver finished units. The buying process starts from online registration form later you need to submit required documents along with 10% of total price to finally book a unit. On the other hand buying ready-now is more suitable for cash buyers. If you don’t have enough funds UAE banks also offer mortgages in accordance with total asset price. Although this method is quicker as compared to off plan buying, sometimes it becomes difficult to obtain mortgage.

Buying off-plan in Dubai



So you have decided to buy off-plan property, don’t forget to check developer reputation before paying initial deposit. Observe the finished projects of respective developer you have chosen for quality of work history of project delivery. Also check that developer is RERA certified with active Escrow account to collect payments.

Buying ready now in Dubai




In case you have arranged funds to buy a home directly from seller. It is necessary to check mortgage status before receiving title deed. It is necessary to take approval before making final decision. Pre-approval ensures that you can proceed to finalize the deal. This will also save your time by making you eligible for finances to buy a home. Usually banks survey the property you have chosen to buy before issuing mortgage to estimate whether it’s safe to lend or not.

Estimate your budget



Budget mainly decides the buying power of buyers. Having estimated your budget, you can make better decision. Whether you are independently searching or working with real estate agent to find desirable accommodation unit, this will facilitate you to screen the suitable property. Furthermore, you also come to know that capital you have allocated for buying accommodation unit is suitable enough or not.
Search to select the right property

New developments arousing all the time across Dubai, there are too many options for those who want to buy residential property in Dubai ranges from villa, apartments and holiday homes. Irrespective of buying off-plan or ready now, buying involves huge capitals. It is necessary to research well to choose the right kind of unit. Make a check list for essentials you want to see in your dream home. List will include everything from size and dimensions, resale value, access to public transport and community amenities to everything about surroundings. If you miss any of these things while searching property, you will not be able to make decision confidently.

Consider working with reputable real estate consultant




Working with RERA certified real estate consultant is mandatory for everyone looking to buy residential units in the city. They can better help and educate you to make the right decision. They are very well aware with market trends and legal implications. A professional agent is so capable to provide primary knowledge to his clients in order to ensure that their clients will make right decision on their own. Despite strong efforts by Dubai Land Department (DLD) and Real Estate Regulatory Authority (RERA), you may still encounter unauthorized brokers.

Residential property in Dubai has been constructed to cater accommodation needs of singles, families, elites as well as low salaried individuals. Once you have completed all documentation and budget estimation to buy residential unit in Dubai, you can easily narrow down the options in the market according to your needs. After careful analysis and discussion with your agent it becomes possible to make right decision.

Tuesday, 28 October 2014

Dubai Property Market moving toward sustainability


After managing the expected danger of another market crash, Dubai property market is finally moving toward sustainability. Despite showing continuous progress, estate market is growing at sensible rate to avoid overheating. Especially the residential sector has become the most prominent because of showing significant level of correction. After observing Emirate asset market for short term or long term, it can be clearly seen that growth rate in terms of price rises during the second quarter of recent year has reached to a sustainable level.

Dubai property is still under-priced as compared to international financial hub

Huge price rises of approximately 64% were observed for all type of real estate assets during the past two years, but still the asset prices are not too expensive. After comparing Dubai with other international hub cities like New York, London, Singapore, Sydney and Shanghai, shows that assets are still under priced in Dubai, UAE. Besides this difference in prices, this Middle Eastern city is very capable to compare with other international financial hubs. Strong infrastructure facilities and modern, well-constructed real estate projects have enabled this Emirate to compete with other counterparts. Moreover, excellent earning opportunities and the tax free lifestyle allow residents to generate disposable income that eventually lead them to buy home in Dubai. These factors make it equally suitable for local end users as well as international investors. Moreover, comparably low asset prices predict that still this sector has very strong potential of growth in future.

Regulatory measures supporting sustainability


After considering the significant rises in buying and renting prices, state government implemented several regulations with aim to control hiking prices. Mortgage and rental caps immediately affected asset prices across the city by making buying bit more expensive. On the other hand, rental cap stopped landlord to increase rents if they have already collecting the specified rent for their home. These regulations also supported long term buyers and significantly reduced flippers from the market. Such conditions have successfully dragged market toward correction whereas also stabilized the rental and sales prices during Q3 of 2014.

How property market balance among demand and supply? 


Although, regulatory measures played major role in controlling sharp hikes in rents and sale prices, it is also essential to maintain the right balance of demand and supply of property units. For short to medium term, market analysts predicted that majority of the upcoming projects are still in the phase of launching and will not deliver soon to create oversupply conditions in the Dubai property market. Market data shows only 5% rises in total supply of residential units which is reasonable with the rising population in the city. At this stage a question should be answered that what happens when market will receive huge supply of these ambitious projects, which are currently under construction phase. Analysts expected significant rise in demand across the city will efficiently balance the huge supply.

Developers are also showing more concerns while selling their projects. Now they also consider selling their projects to bulk buyers and investors showing their interest to flip projects that suits market. Although, flipping is usually not considered as a positive activity, when it is being done for good reasons, there is no harm. This clearly shows that property market is experiencing a self-correction phase and eventually moving toward the stability and sustainability after successfully managing the danger of second property bubble.

Author:


Sabeen Zubair has been blogging as ghost writer for past few years. I have blogged for several real estate, finance, business, travel, life style and home improvement guest blogs. I always try to keep my blog pieces informative and simple to facilitate my readers.

Thursday, 9 October 2014

Why renting property in Burj Al Salam?



Idyllically located in the heart of Dubai City, Burj Al Salam is the family friendly mixed used project. Proximity to emirate business hubs like Dubai World Trade Center and Dubai International Financial Center has made it absolutely a high profile address that anyone could desire to live. The recently completed project was started in year 2007. If you moved along the Sheikh Zayed Road you must have seen the structure jumping among other skyscrapers.

Being located at Number One Sheikh Zayed Road, the development has grouped among most visible real estate projects of the city. The development consists of three towers linked by a large podium at the base. All three towers were purposefully constructed to use as a hotel, offices and serviced apartments. Apartment tower possess one, two, three and four bedroom serviced apartments. The 200 meters tall tower is capable to offer breathtaking views of Jumeirah and the Arabian Sea to its residents.

Few good reasons to rent property in Burj Al Salam





Besides its strategic location and proximity to major business hubs in the city, other good reasons for renting an apartment or office space in Burj Al Salam.

Reasonable Rents

Despite being located on prime position, rents for apartment and office units are reasonable as compared to other projects located on Sheikh Zayed Road. You can rent a spacious serviced apartment with one, two, three and four bedrooms at approximate rents between AED 134,000-AED 227,500 per annum. Moreover, the project offer spacious office space for approximate rents of AED 153,300-AED 7,169,110. 

Easy access to Red Line Metro

Easy access to Red Line metro station makes it well connected with rest of the city. Convenient access to public transport makes Burj Al Salam a perfect choice for business executives, professionals and entrepreneurs. When you rent an office space here commuting to other business centers becomes easy affordable and time saving.

Same work and accommodation address

After considering the booming needs of business and accommodation, developer constructed this project as mixed use project. The three iconic towers are simultaneously capable to provide accommodation, office space and short term rental properties. Possibility to rent office space and accommodation space with in the same project makes it a perfect choice for business professionals who are willing to settle down in the city with their family for longer period of time. Owing an office space and accommodation in the same community can benefit tenants by saving their time which they will be spending daily in traveling to reach their work.

Wide size range of apartment units

Wide size range of apartment units is also very alluring for everyone looking for a spacious serviced accommodation. Usually serviced option is usually available with studios and small apartments, but this project, decent size apartments with variable number of rooms are available with serviced option. Now you can enjoy comfortable furnished living space with your family with renting an apartment in Burj Al Salam.


Splendid lifestyle amenities

The project is well equipped with lavish lifestyle amenities like gym, swimming pool, high speed elevators, valet parking and multilevel car parking. The whole project mesmerizes its residents with modern construction design, state of the art facilities and fine interior finishing. It’s difficult to resist the charm, conveniences and lifestyle facilities.

Shell and Core Office space

Like apartment units, extensive size range office units are available for rent in shell and core condition. Floors have dedicated lobbies and well fitted with essential infrastructure facilities. However, tenants are allowed to decorate and furnish their office unit according to their needs and choices. 

In a nut shell, Burj Al Salam is an iconic mixed use development that offer well-furnished serviced apartments, offices, limited retail space suitable for banks.


Thursday, 18 September 2014

Dubai property rents are stable no sharp increases


Having observed the limited rent rise in freehold communities, it is expected that rents are moving towards stability. A significant difference is observed in total rent rise for second quarter and first three months of this year. Only 1.4% rises are observed as compared to 1.5% during initial months. Tenants become well aware with their rights and rent cap legislations implemented by RERA for yearly increase in property rents. Tenants are now aligning their decisions with the legal compensation forums under the Dubai Land Department.

Landlords are experiencing tough resistance on increasing rents from tenants whether existing, or new one. The upper end of rental market is showing low growth. Although rents are showing noticeable reduction of growth rate, overall property rents in Dubai maintain a positive growth which is expected to persist. Furthermore, the mid and lower end of freehold rental market also shows some decrease in rent rises. Fresh supply of newly residential projects in locations like Dubai Silicon Oasis, Sports City and Motor City are also believed to be the reason of slow rises in rents.



During the past 12 months property rents were increased to 20% and it is observed that such huge rises always resulted by pause duration. This is what currently rental market in Dubai is experiencing, the slower growth in rent rate with falling rent across Dubai. Another reason for this slow rental growth is the hot summer in Dubai. During the summer, landlords started showing flexible attitude on price to prevent their property being vacant.

Despite all this slow growth in rent rate and fall in rent rate, if renting property in Dubai is still expensive for tenants, they can relocate to Sharjha, the affordable rents attract Dubai based workers to its neighboring emirate. Whereas limited supply of property units in Sharjah increases the rents during second quarter by 5.7% in second quarter after the steep rise of 10.8% in first quarter. In addition to individual home seekers, it is also observed that several business owners from Dubai are also looking for bulk quantity accommodation units for their staff in the emirate. The rise in demand for rental property in Sharjah dragged tenant attention to know the legal system overseeing rental disputes. Now tenants don’t agree to accept further increases in rents. It has observed that rising rents increase the number of rental disputes filed at Sharjah Municipality.

The increased awareness among tenants allows them to object to any proposed rises in the rent at the end of their tenancy contracts.  It is also expected that in addition to stabilise the property rent tenants also prefer staying in their current accommodation to save their money.

The stability of rents across Dubai also benefited buy-to let- investment sectors Moreover, RERA rental index upgrades and Tenancy registration system also lure investors showing them proper legal infrastructure to support investors.

Thursday, 11 September 2014

Rents are falling across Dubai




Villa and Freehold communities in Dubai exhibiting drop in rents

Being the hub city of Middle East, every year Dubai receives huge number travelers, businessmen, job seekers and second home seekers. Irrespective to the reason and length of their stay in the city, accommodation is the compulsory need for all. It’s obvious not possible for everyone to purchase an apartment or villa in Dubai for their accommodation. Large number of such expats prefers becoming tenant after renting suitable residential property according to their needs. Regular rises in rents and property buying prices are observed after recovering from market crash. Steady rises eventually dragged property rents and prices to higher levels making accommodation a major concern for expats in Dubai.

Recorded Rental Decreases among Dubai Villa Communities

Palm Jumeirah

Renowned community of Palm Jumeirah experiences huge decline in rents ranges from 5% to 23% for four and five-bed units respectively. Units can be rented at Dh475,000 pa, and Dh575,000 per annum (pa) respectively. However, three bed units in same development show rises in rents from Dh310,000 pa to Dh370,000 pa.
 
The Springs

Providing perfect accommodation for families and couples, The Spring faces substantial drop of 15% to 20% in rents for two and three-bed villa units. Now the same units are available at Dh127,500 (previous rent Dh150,000 pa) and Dh150,000 pa (previous rent Dh200,000 pa).

The Meadows

The Meadows, an established master planned residential community; suffer decrease of 4% for three bed units. The unit can be rented at reduced rent of Dh235,000 compared to previous rent of Dh245,000 pa. But four and five bed villa units show marginal increase of 3.77% and 4.8% and can be leased at Dh275,000 pa and Dh325,000 pa, respectively.

Al Furjan

Conveniently located off the Emirates Road and Dubai Investment Park Road, Al Furjan also displays blend of decreasing and rising rents. Significant fall of 8% to Dh170,000 pa is observed for three bed villa units. Whereas, rents are increased by 7.3 per cent and 20 per cent to Dh220,000 and Dh300,000 pa for four and five bed villa units respectively.

Arabian Ranches

Another master planned community of Dubai; The Arabian Ranches also undergo the same situation of falling and rising rents for its different units. Rents are declined by 4.34% with average rents at Dh220,000 pa for three-bed units. However, four and five bed units’ rents are increased by 2.4% and 2%. Same units can be rented at Dh320,000 pa and Dh375,000 pa.

Recorded Rental Decreases among Dubai Freehold Communities

Downtown Dubai

Downtown Dubai, modern and an upscale community, is seeing fall in rents for all kind of apartments from studios top one and two bed units. 6.25% to 7.14% decrease is observed for studios. Now the units can be rented at Dh65,000 and Dh75,000 per annum (pa). Similarly, one and two bed units display the decline of 8.3% to 10% and 5.88% respectively. These units can be leased on rents Dh90,000 to Dh110,000 pa and Dh160,000 to Dh190,000 pa respectively.

Dubai Marina

Dubai Marina, an elegant manmade water front development faces decline in rents for studios, rents are reduced to 6.67% and 8.33% with rents ranges between Dh55,000 and Dh70,000 pa. Although, rents show stability at Dh90,000 to Dh120,000 pa for one and two bed apartment units.

International City

International City, the true home for divergent nationalities and cultures also showing enormous fall of 12.5% in rents for studio apartments which are now rented at Dh20,000 (previous rent Dh35,000 pa). Although two-bed units faces a fall of 8.33% with rent rates between Dh45,000 and Dh55,000 pa. There has been no change in rents of one bed units and lease rates are unchanged between Dh35,000 and Dh45,000 pa.


Remraan

Huge decreases of 11 and 12.5% are observed for studios in Remraam, now the units can be leased at Dh35,000 as compared to previous rents of Dh40,000 pa. Rents for one- bed units stay same at Dh45,000 to Dh55,000 pa.

Discovery Gardens

Discovery Gardens, with spacious multi-sized apartments also suffer from rental decrease of 10% to Dh40,000 - Dh45,000 pa for studio apartments. Moreover, rent for one bed unit faces the decline between 7 - 8.5% and lease rate ranges between Dh55,000 and Dh65,000 pa. But the rent for two bed unit remains same at Dh70,000-85,000 pa.

Conclusion
However, experts are considering this rental decrease a seasonal change which is not expected to continue for longer duration.  Analysts co-relate fall in rents with slower business activities during summer season. The latest RERA rental index cab better guide expats who are looking to rent an accommodation at suitable rents.

Monday, 1 September 2014

What to consider while choosing short-term accommodation in Dubai?


Whether you are on holiday trip, business trip or relocating Dubai after finding a job there, suitable residence is essential need. Finding suitable accommodation place can be strenuous and confusing for you. Being the hub city and most visited city in the region of Middle East, Dubai possess numerous type of lodging options. From hotels and resorts Dubai also proffers a range of furnished apartments as short-term rental accommodation option in Dubai. Serviced studios, apartments, hotel apartments, villas and guest houses are few examples of short-stay shelters available in Dubai. A lay man can think that hotels are the most suitable option for short stay in Dubai. Despite being world famous for their luxury, ultra-modern amenities and proximity to important destinations in the city, regular travelers consider staying other short-stays because of the significant price difference. Besides low price, other advantages you may enjoy is more living space, own kitchen and privacy like living in your own home. In order to avail all the benefits of staying in a short-stay other than luxury hotels it is necessary to consider certain important things.

Essential considerations for choosing short-term accommodation in Dubai




Booming economy, business and investment opportunities enable Dubai to get itself recognized as the business and trade hub with plenty of job, business and investment opportunities for everyone who wants to upgrade his/her standard of living. Not only holiday makers but also skilled professionals and investors choose Dubai as their destination to visit. If you are among the one relocating here for same reasons it is better choosing short stays other than hotels for your accommodation. If you consider the following things you can successfully select the most suitable short-term housing in Dubai.

Lifestyle essentials you must look for



No one want to sacrifice for lifestyle essentials like fully equipped kitchen, WiFi internet access, direct phone line, cable television and comfortable living space for finding affordable living space. When choosing a serviced and furnished short stay in Dubai, people are expecting housekeeping and security services like hotels. Besides these essentials, you can also check them for extras like workout facilities, retail and entertainment opportunities located near by the neighbourhood.

Must know your budget and length of stay





However, furnished short stays are affordable as compared to luxury hotels in Dubai; it is good to estimate your budget and length of stay.  You can compare the expenses of staying in hotel with other short-term accommodation located in the same neighbourhood. You will find great difference among the two. Those who wish to extend their stay find such options really cost effective as they could enjoy furnished living without paying huge money.

Location is important when choosing short-stay in Dubai

Location is another important thing you must check while booking short stay in Dubai. It is better choosing a short stay that provides easy access to city popular areas, business centers, restaurants, shopping and entertainment places in the city. And if they are not located in close proximity, you must have easy access to public transport like taxis and metro stations. If you don’t consider the location you may spend huge money to avail common life style amenities.

Focus on your personal needs
Last but not least; you should focus on your personal needs before taking final decision while choosing short term accommodation in Dubai. Are you going to stay alone or with your family? It’s obvious you need more living space if you are staying here with your whole family. Furnished villa and apartment would be great for you. On the other hand if you are alone or even with one of your friend or a family member a serviced studio or a spacious hotel apartment will be sufficient for your needs.

If you consider these little things while choosing short-term accommodation in Dubai for your extended stay, you will certainly enjoy comfortable living at significantly affordable prices as compared to luxury hotel suites in Dubai.

Angela Davis:

Angela Davis is a passionate and an experienced writer and social media consultant. She always try to produce unique and stimulating content for their valuable readers.





Thursday, 28 August 2014

Another property bubble threatens Dubai Property Market, Is this true?



After recovering from an enormous property market crash, Dubai property market regained its momentum. With strong performance and increased property transactions, Dubai has once again become the world’s best performing property market in the world. Increased property transactions with rising property prices once again raised concerns of another property bubble. The emirate experienced sharp hikes in renting and buying prices of properties during 2008. The price rise was due to excessive short-term speculation activity in the market especially for off plan developments. Speculation was observed due to small percentage of deposit amount. Buyers didn’t need to pay the full price for such off plan projects. Number of buyers didn’t have any intentions of paying installments in future. What they did was to flip property quickly to resell on profits. Such market practices halted 100s of projects that were launched during 2008. Lack of funds caused many developers to stall their projects event without informing their customers. Later property market showed signs of recovery at the start of 2012 which continued and market showed complete recovery at the end of 2012. The progress continues during 2013 but real estate and business sector experienced a slowdown as everyone was waiting for the final result for World event of Expo 2020. The glitzy win of EXPO 2020 has enabled Dubai to gain world attention again. Local and international investors started making huge investments in real estate, entertainment and hospitality sectors to cater millions of visitors, which are expected to be visiting Dubai.

Recent market Scenario




Although Dubai property market has recovered, problem signs can be clearly observed again with significant rise in off-plan sales. It is observed that mega developers are launching expensive mega projects. Multimillion projects like Mohammed Bin Rashid City, the world largest crystal lagoon and a massive golf course community are few mega projects recently launched in Dubai. Projects developers are funding such mega projects after selling off plan units which is again the sign of danger. Despite observing such alerts still there are people who do not agree with probability of re-occurrence of property bubble again. They consider this price raises a result of increase in demand and strong economy. It is also observed that banks resumed drenching money in real estate projects especially during the past few months after the successful win to host the world event. But the huge rises in property prices, surging supply and unsustainable demand are the risky mix. This is the same combination that Dubai has previously faced six years ago. But according to authorities, they have already taken regulatory steps to controls the market. Although the regulatory steps are not strict as compared to other global cities facing the same difficulties like Hong Kong and Singapore.

Leading financial institutions stated that it’s too early to say anything with complete assurance but this is actually the time to take some solid actions to tackle the market before market really encounters with another property bubble again.

Tuesday, 5 August 2014

Dubai mega projects risking Dubai for boom-bust cycle again



The magnificent win to become the host of an international event World Expo in 2020 has boosted up Emirate confidence. Government officials and analysts have indicated expected rises in population by the end of 2020. As more people will be moving to live and work in the land of opportunities. Urban Plan 2020 predicted the rise in population between 2.8m and 3.2m. Furthermore the event is expected to double the number of visitors choosing Dubai as their destination to visit. The City is expected to receive 25m visitors for 6 months long event. Having considered the overall boost, real estate developers are focusing to invest on residential, retail and hotel projects to provide uninterrupted supply for residential buyers and tourists. State leading developers have announced the launch of various mega projects during the first quarter of 2014.

Why IMF warns on the launch of consecutive mega projects in Dubai?



Despite showing economic strength, huge supply of mega projects can be risky for further economic growth in future with fresh debts and overcapacity. To avoid such risks it is essential to execute these projects wisely with suitable regulatory measures.  Irrespective to the warnings by IMF, State Government officials of Dubai announced the launch of another gigantic mega project to develop Entertainment and Hotel District to serve tourists during the scorching season of Gulf summer.Emirates ruler Sheikh Mohammed bin Rashid Al-Maktoum told that the mixed use mega project will comprise world’s largest shopping mall, the Mall of the World spreading over the area of 8-M sq ft, theater, theme park, medical tourism facilities, 100 hotels and serviced. Furthermore the whole project will be interconnected with more than 4 miles long temperature controlled promenades that will be open during winter but remain covered and air conditioned during the scorching temperatures in summer. Upon its completion the project will be capable to tackle 180-M visitors every year. 

Dubai efforts to manage the expected risks



State Government officials are very confident to handle all associated risks of expected boom-bust cycle. It is expected that strong economy will help government linked firms to restructure their debt. Analysts predicted that it’s not wise to construct mega projects just because of single event. Oversupply of retail stores and hotel units may suffer when expo ends and visitors depart to their homes. Residential property in Dubai becomes very expensive with prices reaching to upper limit of affordability for many buyers. Besides this price rise of residential real estate newly launched projects are being offered at 5-30% premiums. However, developers are offering relaxed payment plans to drag buyers’ interest. The practice of selling off plan units to deposit funds for properties that are not going to be built for many years can fuel potential weakness in the market in near future.

Other mega real estate projects that are announced recently include Deira Islands (a 15.3-km waterfront cluster of hotels, residential areas, resorts and retail) and Mohammed bin Rashid City District One ( a residential projects of 1,500 villas). On the other hand renowned developers like Emaar, Nakheel and Dubai properties have also announced the extension of their existing project.

End-note

After analyzing and considering the latest market trends it has become clear that oversupplying the similar property units like apartments, villas, mall and hotels have strong risk to create a new boom and bust cycle in real estate Dubai.

Wednesday, 16 July 2014

Rising rents increasing the cost of living in Dubai and Abu Dhabi



Dubai had experienced the worst financial crisis and market slowdown in 2009 due to global economic recession in year 2008. After experiencing huge drop business and real estate sector moves towards stability and eventually started showing signs of recovery with gradual increases in property prices and rents in Dubai. Steep hikes in leasing rates have been observed over the past 18 months. Stable political conditions, rise in tourism, trade and business activities attracted people and investors across the world. Now the city has successfully regained its position and strong economic conditions have enabled this city to serve the region again as business and trade hub. The overall progress of business and trade sector pushed the property rents and prices in the city. Rises in accommodation cost significantly increases the cost of living in the city. It is expected that rising rents will be soon stabilized with fresh supply of units after restarting of projects that were paused due to lack of funds.

Rising cost of living in Dubai and Abu Dhabi

Significant surges in leasing prices have significantly boosted the cost of living in Dubai and Abu Dhabi. Previously ranked on 90th and 79th position in Mercer Cost of Living Survey, Dubai and Abu Dhabi moved to 67th and 68th position respectively. The survey includes 211 top cities across the world and estimate the relative cost of more than 200 items for every location. Important items include housing, food, transportation, household goods, clothing and entertainment. Substantial changes have observed during March 2013 to March 2014. The huge rise in price of Mercer items pushed the capital city and trading hub of UAE ahead. Moreover, other Middle Eastern cities also faced notable escalations in their rankings due to price rises and cost decline in other locations. The robust increase in accommodation cost, especially in Dubai and Abu Dhabi is the key factor making these cities most expensive cities to live in. Furthermore, the recent win of Expo 2020 to become the host of this international event drag more investors towards this emirate and increase the rent rates the city.

Factors supporting rises in rents 


Besides tourism and business, launch of mega real estate and infrastructure projects have also played great role in amplifying emirate economy. Furthermore, the successful bid to host world Expo 2020 also support the launch of several real estate projects. Despite its profits and progress, experts are showing their concerns for inflation and new bubble. Having considered such concerns, State authorities have implemented several regulations like mortgage caps and rental caps to control overheating of real estate sector again.

Being the major part of total cost of living anywhere accommodation expenses has great impact on total cost of living in the city. Accommodation expenses further subdivided into house rent, access to transport, retail and health. The economic progress in the region directly affected on accommodation cost in the city which escalates the cost of living in the city making Dubai an expensive place to live.

Wednesday, 2 July 2014

Apartment rents on rise near Dubai Metro Stations

Hefty rent rises up to 34% had been observed across communities near Dubai metro stations since its opening in year 2009. Affordability and convenience to commute with in the city efficiently dragged residents towards communities located near metro stations. Especially expat workers who are living and working in the city prefer living in areas that provide easy access to public transport. As this will allow them to save significant amount of money they will be spending on taxis and fuel. Despite being an important criterion for searching home, initially proximity to metro stations failed to increase the asset prices drastically due to global economic recession. However, relocation at substantial rates to communities near metro stations was observed among tenants looking for affordable accommodation.

Having observed the property price hikes and rises in property demand to date since opening of Metro in the city, experts forecasted further price rises with upcoming Metro extensions. After the successful bid to become the host of world event EXPO 2020, Roads and Transport Authority (RTA) has declared extending Red and Green lines to meet the needs of commuters. After being extended, Dubai Metro will have total 70 stations. It is the backbone of public transport system which allows travelers to enjoy state-of-the art facilities and comfort.

Proven contribution of Metro benefiting the real estate sector of Dubai reveals that transportation and connectivity is equally important for the success and progress of real estate projects. The Metro system is efficiently connecting communities in rapidly expanding city by providing a time saving alternative to busy highways. Not only residents but also the entrepreneurs started relocating from older buildings and secondary locations to prime locations providing better car parking and easy access to Metro stations. 

Rising apartment rents near Dubai Metro Stations

Native preferences to live near metro stations have greatly increased the Dubai apartment rents near Metro Stations. Jumeirah Lakes Tower indicated 26% increase and you can rent two bedroom apartments at 130,000 AED per annum. Rent rises are also observed for other prime locations in the city including Dubai Marina, Downtown, Business Bay, the Greens and Palm Jumeirah.  Now you can rent one and two bed room apartment in Downtown on 110,025 AED pa and 178,020 AED pa respectively.  On the other hand Dubai Marina offers one bedroom apartments at 95,000 AED. The Palm, another prestigious project supplies one and two bedroom apartment units at 140,011 AED pa and 185,000 AED respectively.  The Greens, an emerging community located near Dubai Internet City, Media City and Emirates Golf Club provides perfect accommodation for single and families. Two bedroom apartment can be rented at 150,0000 AED pa. All of these communities are located in close proximity with Metro stations.  Better Homes experts review about rent rises among famous communities have also revealed this fact that proximity to Metro station is one of the important reasons for rises in rents.

Experts have already predicted the expected future rent rise in communities that are going to be connected with Dubai Metro-Green or Red Line after their extension. These communities include Festival City, Ras Al Khor, International City, Silicon Oasis and Dubai Academic City going to be served by Green line whereas as Red line will connect neighbourhoods of Mirdiff, Jebel Ali to the Expo site near Al Maktoum International Airport. Stations are planned to align with existing residential communities in these areas.