Dubai Witnesses Suburban Housing Rush
Clients are eager to snap up townhouses and villas particularly in the city's desert suburbs as quickly as possible. The legacy of remote working is a major factor, with many professionals now splitting their working week between the office and home. A typical two-bedroom villa that cost Dh160,00
Published -
Oct 31, 2021 2:37 PM
Clients are eager to snap up townhouses and villas particularly in the city's desert suburbs as quickly as possible. The legacy of remote working is a major factor, with many professionals now splitting their working week between the office and home. A typical two-bedroom villa that cost Dh160,000 ($43,500) just six months ago here now fetches north of Dh200,000, he said. A larger four-bedroom villa will now set you back Dh320,000, when six months ago you would have expected to pay Dh270,000. Outdoor space, like a garden, is more in demand than ever as well, because people were feeling cramped spending so much time in their apartments. While the increase in the cost of renting in Dubai is good news for landlords, it is obviously less so for those who rent. The cost of renting overall is on the up - but the increases are far more modest when you look at the city-wide average. Third-quarter rental data from ValuStrat, released in early October, painted a more measured picture than many agents gave. The average villa landlord asked for 14.1 per cent more in rent in Q3 2021 than they did in the same period in 2020, while the average apartment rent rose by just 2.6 per cent. ValuStrat said average prices were significantly more affordable than during the spike seen in 2013-14, after Dubai won its Expo 2020 bid. Jumeirah Village Circle (JVC) is the most searched for location in Dubai by people looking for budget-friendly apartments, according to a Q3 report from property portals Bayut and Dubizzle. The average cost of a two-bedroom apartment there has risen from Q2 by less than five per cent, from last year, to Dh62,000. The increase in cost for a one-bedroom flat has risen by just over one per cent in JVC to Dh43,000. Dubai Marina remains the most popular location for a luxury apartment according to the report, with prices increasing from six to 12 per cent across the board. The average cost of a one-bedroom apartment in Dubai Marina is Dh67,000, with two-beds going for Dh100,000 and three-bedrooms fetching Dh156,000. Some areas have seen no increase in rental prices at all such as Bur Dubai, where the average cost of one and two-bedroom apartments is the same in Q2, at Dh45,000 and Dh66,000 respectively. Despite rent increases in some areas, many tenants find they can get a slice of skyscraper living in Dubai Marina for a relatively affordable price. Photo: HMS Homes Another sign the pendulum is swinging in the favour of landlords is a renewed demand for rent to be paid by one annual cheque, rather than numerous cheques throughout the year. It was not uncommon for some landlords to accept 12 monthly cheques in recent years, allowing tenants to stagger rent payments throughout the year. Now because of the demand it’s going back to a lower number of cheques per year.
Tags : INTERNATIONAL Dubai tenants Landlord Villa ValuStrat Jumeirah Village Circle Bayut Dubizzle Property Portals