Indeed it is true that there is a silver lining to every cloud. No matter how bad things may seem, some Dubai residents whose lease contracts are about to expire are likely to be relieved as rentals fall.
The Dubai Real Estate Regulatory Authority (Rera) is reportedly set to release, any time this month, the new rental index expected to show a 10 to 15 per cent drop in rentals in some areas. Some people, however, are saying that the reduction could be significantly higher and could be as much as 30 per cent.
Talk on Dubai's falling rentals is exciting average-income earners. Many are hopeful they will finally be able to move into bigger apartments which were once beyond their price range.
A friend of mine who's living in Sharjah is thinking of moving back to Dubai now that rents in some areas have eased. I have just told her about an online advertisement promoting a "brand new four-star hotel" just off Shaikh Zayed road. The property owner is renting out Full Furnished Rooms for Dh4,500 a month. That's a lot cheaper than the old Hotel Apartments you will find in Bur Dubai!
It appears the property was meant to be a hotel, but the owner apparently decided to rent out the rooms for long term stays, at a very affordable prices. It is equipped with basic hotel facilities - swimming pool, gym, conference facilities, a sports bar, sauna, and other amenities.
Back in the days when rents were sky-high, it was impossible to find similar accommodation at that price. I have friends who paid the same rent last year for an unfurnished old room in Satwa. There was no hint of a "hotel feel" to it whatsoever - no gym, no pool, no sauna.
Given the number of people out of jobs or with shrinking salaries, there is apparently less demand for rental properties. Falling demand should mean there is a larger pool of empty spaces to choose from.
The less demand there is, the bigger the chance that rates will slide, and the more the probability of tenants haggling for a better deal. Recession has its upside.
I know an expatriate from Egypt who just got a fantastic offer from his landlord. He was paying Dh160,000 annually for a two-bedroom apartment in Jumeirah Beach Residence. Since his contract was about to expire, his landlord agreed to let him pay rentals on a monthly basis, instead of paying two cheques as before.
However, he recently found a similar apartment in the area that could cost him 15 to 20 per cent less, so now he's thinking of moving out.
Another expatriate from France who's living in Downtown Burj Dubai is looking to switch apartments. His one-bedroom flat costs Dh125,000 a year. If he were to transfer now, he could find a similar place in the area for Dh90,000 to Dh100,000, or about 20 to 28 per cent less.
Although there are still people reporting rent increases this year, there are certainly cheaper apartments waiting to be snapped up. The key to bagging a good deal is to look around, and then to negotiate.
Source: Gulfnews
Nowadays Dubai Property and Dubai Rental property prices are very much low. The Experts are optimistic about the real estate future in Dubai. Rental fee is despite of the 4% drop. That is why, mostly visitors favorite place is dubai for spending holidays.
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