Dubai Rising rents prompt residents to seek affordable areas, downsize - Inchbrick Blog

Dubai Rising rents prompt residents to seek affordable areas, downsize - Inchbrick Blog

Dubai Rising rents prompt residents to seek affordable areas, downsize - Inchbrick Blog

Dubai Rising rents prompt residents to seek affordable areas, downsize - Inchbrick Blog

  • Punit Rana
  • (0)
  • (676)
  • January 9, 2024

News, Best location in Dubai,buy apartment in Dubai,Dubai,Localities in Dubai,Real estate


Dubai: Rising Rents Prompt Residents To Seek Affordable Areas, Downsize

Many families in Dubai are moving due to rising rents in some established city neighbourhoods.

During the pandemic-induced fall in rents, a significant number of families and individuals in the emirate have moved into more spacious homes with gardens and outdoor facilities.

However, as life returns to normal, residential rents across the country are once again soaring, with many now choosing to downsize or relocate to less expensive areas.

French expatriate Christine Quartier La Tente said in an interview with Khaleej Times: "The main reason why we moved out of Springs was the rent increase. We bought an apartment in Springs for 170,000, with three bedrooms and a large bathroom. Study, a maid’s room and a backyard. During Covid-19, I managed to reduce the rent to Dh140,000.”

But after the coronavirus scare subsided, Christine’s landlord raised the rent again. She explained that if she wanted to continue living in the Springs, her family would have to contribute a significant portion of their income.

Annual expenditure AED 260-290,000

  • "If we wanted to be in the same neighbourhood, with the same layout, I would have to pay Dh2.60 to Dh290,000 a year. So, we thought that would be enough."
  • The French expat then decided to explore the possibility of buying a house. “I visited a lot of theBest locations in Dubai. I had my eye on Al Furjan because it wasn’t too far from the Springs and I didn’t need to completely change my life. But that didn’t work out because the property prices in the area were also quite expensive.”
  • By September 2022, the emirate’s real estate market is recovering strongly. Preferred areas for Buy apartments in Dubai include Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai and Jumeirah Lakes Towers (JLT). In terms of villas, Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah and Damac Hills emerged as the most popular areas.
  • “We decided to buy a house, but the problem is that we are now in our 50s and cannot get a 25-year loan. Also, we don’t want to borrow for that long. For a shorter loan term, we have to consider cash for my daughter’s school flow and all other household expenses. So, we realised we couldn't risk buying a house to live in. We changed our strategy and thought let's move to the cheapest place and put the money aside to invest later
  • After thorough research, Christine has moved into Damac Hills 2, a community facing Al Qudra Road with various affordable properties but a luxurious lifestyle.

Commute Longer

She explained that although the community's location on the outskirts of Dubai, close to Jebel Ali-Lubbad Road (E77) and Al Ain-Dubai Highway (E66), may require a longer commute, she was attracted by its numerous amenities. And was attracted to this community. These include a picnic park, petting farm, dog park, aviary, children's play area, nursery, water and sports facilities and community centre.

"For me, travel times to and from anywhere within the city typically range from 25 minutes to over an hour. I spend about 30% of my time commuting. These travel times also vary based on the distance to the destination. However, to save future investments, we need to make a significant adjustment in the rent [we pay]. That’s how we got here. We still want to be a community after The Springs,” she added.

Christine is now paying Dh95,000 a year for a three-bedroom townhouse that also has a maid's room and a backyard.

“Houses move very fast here. When I went in April-May 2022, the rent was 70-75K, sometimes even 65K. But in the summer, when I started visiting again around June, prices started to keep rising. Many people were relocating from areas with lower rents, such as town squares, resulting in a surge in demand. Realising that prices would increase further after the holidays, we decided to find a place as quickly as possible. Eventually, the rent for the same villa increased significantly to Dh110K-Dh115K. So, it was a strategic backup plan for money.”

Room Size Is Small, No Sense Of Community

Likewise, Mays Aalem has now moved to Al Furjan and pays Dh170,000 per year in rent. Mays, who has lived in a larger home in Springs, outlined the hassles that come with moving.

Aralam, a Canadian expat in Dubai, said: “Rents in the Springs have increased significantly. The experience of living in a community is in stark contrast to that of living in a house that lacks amenities. Our previous community felt safer, especially when raising children. Also, when you move into a new residence, you have to think about buying new furniture to fit in the next house. In our case, this was much smaller than our previous accommodation. I had to throw away a lot of stuff because it no longer fit in my current home.

Trouble Shifting Gears

Filipino expat Jez Riviera, who recently moved to International City from Al Mankhool, explained that better facilities and affordable prices were the main reasons for her move.

Changing cars is always a hassle. But if you do the maths, it must make financial sense to live somewhere. Al Mankhool is lively and I like the atmosphere there, but the landlady keeps raising the rent. Where I live now is a regular one-bedroom apartment that we (three sisters) share and we pay AED 2,800. There are many grocery stores, parks and shopping centres nearby. " Jez said.

At the same time, demand for housing continues to rise across the city, resulting in a shortage of available properties. As a result, landlords experience little or no extended period without tenants confirming a strong and thriving rental market.

“In my previous stay, we paid AED 1,100 for separate partitions. When one of my sisters joined, that number increased to AED 1,300 per month. Then it increased to AED 1,500 for two people. Then By October, she wanted to increase it again to Dh1,700. So, we decided to move out,” the assistant coach added.

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