The smart way to go house hunting

Dubai's rent decline has everyone atwitter - and moving. From Karama to Ajman, word has it that people are moving to areas where rent is softening. Some of the hotspots mentioned are Jumeirah Lake Towers (JLT), Dubai Marina and Discovery Gardens, among others.

The changing market conditions in the real estate sector in the UAE have indeed made it easier for the tenant community to upgrade their homes or find better and larger accommodations, not only at competitive prices but on easier terms, too. I heard that some landlords are now willing to settle for 12 payments.

To get a first-hand look at the market, I tagged along with a house-hunting expatriate a week ago and explored a high-end residential community in Dubai, where one-bedroom apartments were going for Dh130,000 to Dh180,000 last year.

After scouring almost every empty flat, my friend found a one-bedroom unit with glass-panelled walls and a spacious balcony looking out onto a charming garden and a pool for Dh110,000. By JLT or Discovery Gardens standards, this is still expensive, but considering the location and amenities, I'd say it's a good deal.

The house search wasn't easy though.

Here's how this house-hunting friend snapped the deal:

1.) Know what you want and focus on it. Do you want a furnished or unfurnished flat in the Greens or on Shaikh Zayed Road? What's your budget? Can you afford two or four payments? Should there be a pool, gym or coffee shops nearby? Focus your search on these parameters. This will make hunting a lot easier. Check online ads, newspapers or ask around to get an idea of the prevailing market price.

2.) Get a notebook and write down the details of the flats you want to check. The shortlist should include the price, description of the property, name and phone number of the agent. Don't forget the agents' names. Some of them post the same ad many times, so you'd end up repeatedly calling them and asking the same questions.

2.) Ask a lot of questions before going ahead with the viewing, keeping in mind your list of 'must haves'. One of the things you should not forget to ask is how the apartment is placed. If it's facing a huge construction area, you know what you're getting into: a whole year of sleepless nights. I've seen many one-bedroom flats going for Dh95,000 to Dh100,000 and 99 per cent of them are right in front of a construction site. Trust me, those with a lake view or tucked away in a quiet spot are hard to find.

3.) Do the viewings during the day. Ninety-nine per cent of the apartments I checked don't have Dewa connections. Even if you have a really strong imagination, don't bother to go at night. Not even a flashlight or the agent's vivid description would help.

4.) Call the property agent the night before the viewing. Many of them don't have keys to the apartment and would need time to coordinate with the landlord.

5.) Be honest with your agent. Tell him or her your budget and requirements.

News Source: The Gulf News

Rental Fees in Dubai

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.

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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