Go Back  British Expats > Living & Moving Abroad > Middle East
Reload this Page >

So, will be it rentmageddon in Dubai?

So, will be it rentmageddon in Dubai?

Old Apr 22nd 2014, 10:21 am
  #1  
Soupy twist
Thread Starter
 
Joined: Dec 2004
Posts: 2,271
Eeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond repute
Default So, will be it rentmageddon in Dubai?

Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like. It would be insanity, but when has that ever stopped them?
Eeyore is offline  
Old Apr 22nd 2014, 10:29 am
  #2  
Account Closed
 
Joined: Mar 2012
Location: Dubai, working at Dust World Central
Posts: 3,706
mikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore
Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like.
Same rumour was going round when AD cancelled the 5% increase limit, not going to happen. Remember that the percentage increases bands were only changed late last year.
mikewot is offline  
Old Apr 22nd 2014, 10:33 am
  #3  
Soupy twist
Thread Starter
 
Joined: Dec 2004
Posts: 2,271
Eeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond reputeEeyore has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

I'd like to share your optimism, but I can't. The fact that the increase bands were only recently changed doesn't seem to mean a great deal. After all, if AD has abolished any rental price controls, why should Dubai keep them?
Eeyore is offline  
Old Apr 22nd 2014, 10:35 am
  #4  
Account Closed
 
Joined: Mar 2012
Location: Dubai, working at Dust World Central
Posts: 3,706
mikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond reputemikewot has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore
if AD had abolished any rental controls, why should Dubai keep them?
Because AD's renting laws are zero in comparison to Dubai. The laws for Dubai are really very good for renters, I cannot think of any logical reason for ripping the whole lot apart.
There are changes coming, they were communicated last year, but refinements not just dumping it all.
mikewot is offline  
Old Apr 22nd 2014, 11:37 am
  #5  
BE Enthusiast
 
Dubaiexile's Avatar
 
Joined: Jul 2013
Location: Dubai
Posts: 990
Dubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond reputeDubaiexile has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Mind boggling really that a LL would rather keep his properties empty, than fill them by charging a realistic price.

Just renewed mine at the same rate as the last 4 years, have a realistic landlord who is actually a very nice chap and visits once a year and always brings a box of dates as a gift !!
Dubaiexile is offline  
Old Apr 22nd 2014, 12:37 pm
  #6  
Lost in BE Cyberspace
 
Joined: May 2008
Posts: 5,125
busybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore
Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like. It would be insanity, but when has that ever stopped them?
it happens now in auh.
busybee2 is offline  
Old Apr 22nd 2014, 12:38 pm
  #7  
Lost in BE Cyberspace
 
Joined: May 2008
Posts: 5,125
busybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond reputebusybee2 has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Dubaiexile
Mind boggling really that a LL would rather keep his properties empty, than fill them by charging a realistic price.

Just renewed mine at the same rate as the last 4 years, have a realistic landlord who is actually a very nice chap and visits once a year and always brings a box of dates as a gift !!
because they are not charged any mortgage when its empty unlike the row.
busybee2 is offline  
Old Apr 22nd 2014, 12:39 pm
  #8  
Account Closed
 
Joined: Feb 2011
Posts: 0
scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore
Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like. It would be insanity, but when has that ever stopped them?
I hope not. People I talk to say it's back to 2007 prices already. That either means it's about to go pop again or it might stabilise? Who knows.
scrubbedexpat141 is offline  
Old Apr 22nd 2014, 1:31 pm
  #9  
Bored liberal
 
Meow's Avatar
 
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Meow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond reputeMeow has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by mikewot
Because AD's renting laws are zero in comparison to Dubai. The laws for Dubai are really very good for renters, I cannot think of any logical reason for ripping the whole lot apart.
There are changes coming, they were communicated last year, but refinements not just dumping it all.
I agree. I really can't see the laws, which have been in place for some time, being revoked. Doing so would make the bubble even worse and Dubai doesn't need another 2008 right now. Well, not for some time anyway...
Meow is offline  
Old Apr 22nd 2014, 3:50 pm
  #10  
Lost in BE Cyberspace
 
Millhouse's Avatar
 
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Millhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond reputeMillhouse has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Norm_uk
Abu Dhabi removed the rent cap and it has become silly time at the funny farm. If Dubai does something similar they will literally price themselves out of any kind of competitiveness. At lot of companies are already reviewing operating costs in the UAE as they can't afford to pay for staff to live here...

N.
Amazingly, we are doing the opposite. Still bringing (international) people here as it is cheaper than keeping them in Delhi and Istanbul!
Millhouse is offline  
Old Apr 22nd 2014, 4:02 pm
  #11  
BE Forum Addict
 
Patsy Stoned's Avatar
 
Joined: Apr 2007
Location: Dubai
Posts: 4,403
Patsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond reputePatsy Stoned has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Interestingly the RERA calculator is being updated, I thought they had only just done that?

http://www.dubailand.gov.ae/English/...culatorEN.aspx

The rental index under updating.Please contact [email protected]
Patsy Stoned is offline  
Old Apr 23rd 2014, 5:28 am
  #12  
**** it we'll do it live
 
shiva's Avatar
 
Joined: Oct 2004
Location: Dubai
Posts: 7,892
shiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond reputeshiva has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

lessons learnt from last crash - 0

date to next crash - 2016 then again in 2021
shiva is offline  
Old Apr 23rd 2014, 5:48 am
  #13  
BE Enthusiast
 
Cypselos's Avatar
 
Joined: Jan 2008
Posts: 570
Cypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to beholdCypselos is a splendid one to behold
Default Re: So, will be it rentmageddon in Dubai?

How far in advance did you put the renewal date Patsy? It always says that if your date's too far in the future - stick in tomorrow and it give you the calculation.
Cypselos is offline  
Old Apr 23rd 2014, 7:51 pm
  #14  
Token Scandinavian Bloke
 
norsk's Avatar
 
Joined: Jun 2009
Location: Dubai
Posts: 2,820
norsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond reputenorsk has a reputation beyond repute
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Norm_uk
Some literally do not need the money. Many buy property to get a rental yield rather than a capitol gain so are happy to wait a few months. Some have bad rental agents working for them...many combine all three traits.

As long as the country promotes a feeling of temporariness and short term high gains this will continue.

Bubble time methinks. We had a 10% raise...almost the same as it would cost to move. Smart Landlord

N.
And yet another group of people are "laundering" money brought in from some of the broken countries in the region. They are not after a yield and don't live here either, but buying property in Dubai is safer than keeping a suitcase full of Ben Franklins buried in the garden.

I reckon the selling prices will crash at some point as the pipeline of new property coming onto the market is just too large for the sustained growth we are seeing, but the question is what will happen to rental prices? A huge part of the problem here is the scum otherwise known as estate agents. They are incentivised to push prices upwards.

The property market here doesn't work like in the real world where selling and rental prices are correlated. My landlord tried to justify his increase last year with this logic and I felt obliged to give him a 15 minute lecture in basic economics of a functioning property market and why this doesn't apply to Dubai...
norsk is offline  
Old Apr 24th 2014, 4:25 am
  #15  
Account Closed
 
Joined: Feb 2011
Posts: 0
scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141 scrubbedexpat141
Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by norsk
And yet another group of people are "laundering" money brought in from some of the broken countries in the region. They are not after a yield and don't live here either, but buying property in Dubai is safer than keeping a suitcase full of Ben Franklins buried in the garden.

I reckon the selling prices will crash at some point as the pipeline of new property coming onto the market is just too large for the sustained growth we are seeing, but the question is what will happen to rental prices? A huge part of the problem here is the scum otherwise known as estate agents. They are incentivised to push prices upwards.

The property market here doesn't work like in the real world where selling and rental prices are correlated. My landlord tried to justify his increase last year with this logic and I felt obliged to give him a 15 minute lecture in basic economics of a functioning property market and why this doesn't apply to Dubai...
Only yesterday I overhead a colleague talking to a candidate;

"You are on 25,000, this role can pay 30-33,000 in Dubai. You currently live in Dubai but work in Abu Dhabi. Would you consider 30-33k?"
"No"
"May I ask why not?"
"I think salary should be 40,000 for me now."
"Ok, why such a large increase?"
"Expo"
"..........."
scrubbedexpat141 is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.