The Dubai housing situation of 7 months back was as described below.
Almost 65% of Dubai residents were forced to relocate mostly due to rent increases.
According to a poll by price comparison website MoveSouq.com, which surveyed 300 Dubai residents, around 84% of the respondents saw a rent increase in 2014 and about 65% said that they would seriously consider not renewing their lease and relocating to another home.
However, 36% of the respondents saw a rent increase up to 10% while half of the residents faced hikes greater than 10% and that, 75% are those who were considering to move out.
MoveSouq.com team explaining said : “The latest results of our survey are reflective of the overall price increases that Dubai residents faced during late 2013 and early 2014” adding “It would be interesting to see how these trends change over time given the current stabilisation in housing prices”.
Dubai’s rental market, which was overheating due to a strong recovery in the residential sales market, is now showing signs of a slow-down.
According to a recent report by real estate consultancy Asteco, average apartment and villa rental rates dropped by 2 and 3% respectively during the third quarter of 2014.
However, year-on-year rental growth remained high, with most areas in the emirate posting double-digit growth.
While housing complexes such as Palm Jumeirah and Sheikh Zayed Road saw average apartment rates rise by 21% in 3rd quarter of 2014 year on 2013, the rise was even higher in Jumeirah Lakes Towers with 42% and Dubai Marina with 36%.
Affordable communities such as Discovery Gardens and International City saw year-on-year rents increased by 23% and 40% respectively.
Asteco forecasted that many tenants were likely to see rental increases as shown in the RERA rent index. They also foresee that because of that, many could be lead to relocate to other affordable Emirates, meaning leaving Dubai altogether.
Dubai in these latter days, is witness to dynamic prices movements in the rented housing market. Affordable housing supply is far from satisfying demand at this stage half way through 2015.
All rental housing concerned mainly expatriates ‘white collar’ salaried employees of the private local as well as international companies. The ‘blue collar’ segment, on the other hand, of the expatriate workforce was naturally treated no differently than in the rest of the GCC’s.
In 2014, good standards, short supply and exceptionally speculative range of rent prices, characterised the first category of housing. As for the second one, it was as in Qatar, Bahrain, Saudi Arabia and Oman, poor and below standards generally.
Would 2015 be any different?