Steady Rental Markets in Established Communities in Dubai

Over the past year, rental market in Dubai has reflected a marginal softening in rates. Several freehold developers are carefully managing their pipeline projects for a projected delivery in 2017-18, maintaining a steady position and adopting a wait-and-watch attitude this year. There has been slight growth in rents of new offerings and downturn in projects with inventory overhang.

End-user seeks specific conveniences, ease of access to lifestyle, leisure attractions, connectivity, and a referenced part of established communities, the rental market trends are governed by demand from end-users seeking specific conveniences.

Established communities including Downtown Dubai, The Greens and Dubai Marina have held steady rental market in Dubai, over the past year. Downtown Dubai continues to command premium apartment owners a steady income stream.

Developers of these established communities have invested well in development of infrastructure and this significant development if the reason for success. Improved public transport options and ease of access, community centers, parks, health and fitness facilities, hassle-free maintenance, provision of secure communities and after-care, with the addition of F&B options and array of leisure have built strong economic value for these neighborhoods.

These freehold neighborhoods have made them the first choice for the discerning professionals and with the ongoing preparations for the Expo 2020 Dubai; the number of professionals arriving to Dubai are increasing. Due to this, demand for rental homes continues in premium locations.

Most residents prefer these thriving neighborhoods in the heart of the city instead of other locations for many reasons. This also highlights the maturity of the Dubai property market. At present, there is an increasing demand for end-use homes, as people seek shifting from rental model to an owned-house lifestyle. We can see a shift in life-style, with customers asking, 'when to buy?' as against 'when to sell?' In order to meet the requirement several affordable communities have been launched for value housing but due to pipeline projects these are yet to be handed over.

For the rent tenants pay now, which is a 'dead investment,' they may have the opportunity to make a long-term investment of their own in Dubai's property sector, protecting their capital and getting benefit from future capital gains. Huge amount of money required for investment in affordable homes is the barrier to many middle-income professionals, while taking care of the current rent burden.

Expatriate community prefers residential destinations such as Bur Dubai, Karama, Al Qusais and pockets of Deira. Most of these traditional neighborhoods have shown an increase in rental values, reflection of market trends recorded by Rera index due to new quality projects being released and sustained demand in these areas demanding higher prices.

About the Author:-

The article is written by Reenna Arora, associated with Own A Space, one of the leading property portal of Dubai. We cover all kind of properties across Dubai and other Emirates. It is your Own Space catering to various real-estates related needs and it’s here the buyer and seller meet online with detailed information on property requirements of the client.

The article is written by Reenna Arora, associated with Own A Space, one of the leading property portal of Dubai. We cover all kind of properties across Dubai and other Emirates.