Dubai's thriving real estate market presents challenging rent considerations for tenants
Published Date: 24 Jul, 2024
Dubai's thriving real estate market presents challenging rent considerations for tenants
Tenants claim they will see significant increases in rent as the economy bounces back from the pandemic's start and as Dubai real estate values climb.
After costs dropped during the epidemic, rent has surged by much to 20% in a few of the most famous districts of the emirate.
A Lebanese
To make working from home more comfortable, 52-year-old Lebanese resident Hoda rented one of the large apartments for rent in Dubai Sports City via a real estate company in October of last year.
Despite months of maintenance issues, including issues with the air conditioning and plumbing, she paid AED 42,000 a year for the 2-bedroom assets, saying at the time this was a decent value.
Three months before her contract's expiration in July, she was informed that the rent would increase to Dh50,400 year.
She told The National, "I received an email from the agency saying that they could raise the rent by 20% because the property was already rented out at 40% less than market value, based on the Real Estate Regulatory Authority (Rera) calculator."
"If the apartment hadn't been in such horrible shape, I wouldn't have been too upset. I experienced constant leaks in the bathroom's ceiling and malfunctioning air conditioning the entire time I resided there.
"I was shocked to receive the email about the increase in rent because the property owner or agency failed to address the issues despite multiple visits from the upkeep team."
Upon the expiration of her lease, Ms. Ayache decided to vacate the apartment following several months of back-and-forth negotiations about the price.
A New Zealand National
Public relations professional Lucas Charles, who is from New Zealand, claimed that two months ago, he had to pay an additional Dh6,000 a year for his two-bedroom home in The Greens. Before the alert about the rent rise, he had been spending AED 56,000 annually for two years.
"While it's great news for landlords that the rental market has recovered following the Covid-19 pandemic, some individuals are still experiencing wage reductions at their places of employment," he remarked.
Property brokers report a thriving market for properties
It has been years since the rental housing market has been this active, according to estate professionals operating throughout the city.
Townhouses and villas for rent in Dubai are in high demand, especially in the city's arid suburbs, where buyers are keen to act fast. Many professionals now divide their workweek between their workplace and their home, which is largely due to the tradition of remote working.
Leasing and sales manager Mario Volpi of Engel & Voelkers stated that landlords are legally allowed to increase rent by a maximum of five percent, even if they are not charging market value.
Date: 24 Jul, 2024
