SheikhG

Hi All,

I m very hopeful to reallocate to Dubai early next year and have a very short question about the rent situation in Dubai. Here it goes;

Reading though many threads in this forum, people are warning newcomers to think about the rising rents when negotiating their remuneration packages.
At the same time, I read other threads in which many people are saying that housing supply is soon (or in a stage off) outstripping demand (and thus predicting a decline in property prices).

Applying basic supply and demand economics we should expect rents to go down, right? Or maybe there are other factors that I haven’t taken into consideration....and I would be grateful if you could enlighten me.

Thanks in advance!

Spugsy

rents won't go down fella, you'll find somewhere but it may take a little while, get as much as you can for your housing allowance.

Bonny Boy

A certain percentage of property owners here have bought with cash and hence are not dependant on rental income to pay off a mortgage.

As a result they are happy to ask a high rent and if there are no takers just leave the place empty.

Other than this, supply and demand is about the only 'law' of economics anyone needs to know.

Blue Cat

villa prices are going through the roof, due to supply and demand. I can see the apartments levelling off thought with the release of so many new buildings.

Spugsy

how much are the apartments up at your place?

Blue Cat

140k for a two bed

Spugsy

apartment as in flat? upstairs or downstairs?

Blue Cat

apartment, as in tower block

Spugsy

oh balls to that - there's tower blocks at your place?

We're considering moving when our year is up in about 6 months, but we need somewhere big enough and with space for Santi to get out and run around in, we may look elsewhere in Mirdiff, not sure though, its good but those planes....

Blue Cat

come over and have a look before you decide, it is pretty nice actually

Norm_uk

Lucky Dubai residents. In Abu Dhabi you'll be lucky to find a one bedroom for less than 150k these days...

I just had a meeting with someone who works with the chaps at Dubai properties and they are bringing in software consultants to prepare their rental systems for when the market starts demanding monthly and quarterly rentals...

...things will change in next year or two slowly. I don't think rents will come down a lot but I do think we will see things like one year up front and the ability to raise rents by more than a few percent become rarer in Dubai - there is simply too much being built and not enough demand.

N.

SheikhG

Cheers Spugsy, negotiating my offer right now...fingers crossed for an increased housing allowance!

SheikhG

yeah, makes sense!

Spugsy

but we need somewhere Santi can just go outside and run around in.

Blue Cat

stay where you are then