Despite drop, Dubai rents give investors good yields

July 23, 2017
e9e5eca9a615ccbd1f8a8d309f7e1fb6.jpg

Despite drop, Dubai rents give investors good yields Expect further rent drops during the summer. However, those of you living in central locations are likely to see rents stabilising by next year while those in secondary locations can see prices softening further. This is as per a market report issued by real estate consultancy Core Savills. Rents in Dubai continued to soften across the board in the second quarter, with only one exception in Dubailand, possibly due to low entry level rents. "Tenants are increasingly conscious of current market conditions and many have successfully renegotiated contracts while others have shifted homes, either upgrading to a better unit at...

Rent controls are a waste of society's time and resources

July 23, 2017
88c960a8ce6867e0a74fa71c97532070.jpg

Rent controls are a waste of society's time and resources Rent controls are a policy favoured by many governments, including those of the Arabian Gulf countries, with the goal of helping low-income families access affordable housing. In our last article, we explained why rent controls create housing shortages and diminish housing quality. In this article, we dig deeper into the damage caused by rent controls, highlighting how they waste tenants’ valuable time and resources. If rent controls create shortages, how is the shortage resolved? Who gets lucky and who does not? When price controls are implemented in their strictest, purest form, consumers enter a rationing qu...

Off-plan boom hurting sellers of completed Dubai homes

July 23, 2017
96f1ec2a645117c892b1adfb4fdfec8b.jpg

Off-plan boom hurting sellers of completed Dubai homes Dubai’s burgeoning off-plan sales market is having a ‘detrimental effect’ on prices of completed homes in certain parts of the city, says a new report from Core Savills.  The consultancy's latest Dubai Residential Market Update states that homeowners in areas such as Downtown Dubai and Dubai Marina are competing for the same pool of investors as developers launching new schemes, with the latter offering “highly competitive and attractive payment plans”, often  for properties that are more competitively priced.  “We remain watchful over growing off-plan sales and lucrative payment plans, which continue to undercut bot...

GCC real estate eyes return to form

July 23, 2017
0e8f2e58599c2085f298e95876fa44ca.jpg

GCC real estate eyes return to form It’s fair to say that the past year may have been one to forget for many involved in the Gulf region’s real estate market. Austerity measures, redundancies and reduced economic sentiment linked to the falling oil price saw demand in many markets diminish over the last 12 months with much of the pain reflected in declining sale prices and rental rates. “Across the Gulf, and across most real estate segments, activity and performance over the past year have either slowed down in growth, stagnated, or decreased,” notes Bruno Wehbe, principal with PwC unit Strategy&. The impact can be seen across the Gulf’s key property markets. In Saudi...

The top performing Dubai district for rents might surprise you

July 23, 2017
9077ca20ed498da92cc0bf366c0d5bba.JPG

The top performing Dubai district for rents might surprise you Dubai’s Jumeirah Lake Towers, long seen as the less desirable cousin of neighbouring Dubai Marina, is the city’s top performing area for apartment rental values, according to a new report.   Propertyfinder Group’s UAE Real Estate Trends 2017 report showed that Jumeirah Lake Towers – more widely known as JLT – was found to be the only neighbourhood in which apartment rental values increased in the six months to March 31. The 1 percent rise compared with a near 1 percent drop in nearby Dubai Marina and Jumeirah Beach Residence (JBR), while Downtown Dubai and Palm Jumeirah tumbled 4.7 percent and 5.8 percent resp...

Tenants in charge as Dubai landlords 'becoming more generous'

July 16, 2017
0bb84e8597855755bcc05ee68d99cb96.jpg

Tenants in charge as Dubai landlords 'becoming more generous' Dubai’s residential market witnessed a very minor contraction during the second quarter of 2017, with both sales and rental rates seeing modest declines, real estate advisors CBRE has said. Its Q2 2017 Dubai MarketView said this is driving the progression of a tenant-led market, with landlords becoming more generous in their negotiations with prospective new tenants. However, tenants on existing leases are generally not finding the same level of flexibility from landlords, although rental increases are becoming less prevalent, it noted. “The sales market has witnessed an improvement in transaction numbers d...

Seven in 10 UAE residents lack home insurance

July 16, 2017
6c28ff8cfec1999569cee89e240d9dba.jpg

Seven in 10 UAE residents lack home insurance The majority of UAE residents are not signed up to a home insurance policy - despite understanding the risks associated with not being covered by home contents insurance - according to a recent survey from compareit4me.com. The survey revealed that 69.1 per cent of people in the UAE are currently not signed up to a home contents insurance policy. This is despite the fact that the vast majority (84.5 per cent) of UAE residents admit that they would feel more comfortable in the knowledge that their belongings are covered by home insurance when they travel. The reasons why so many UAE residents aren't signed up to home insurance...

Good communication will solve any confusion over a rental contract's end date

July 16, 2017
98d64bcbe202ebb953fab4cf4854249c.jpg

Good communication will solve any confusion over a rental contract's end date I have a question about the interpretation of  Article 13 and Article 14 of the Law No. 33 of 2008 regarding "amending some provisions of Law No. 26 of 2007 regulating relationship between landlords and tenants in the emirate of Dubai" (the Rental Law). Am I obliged to give the landlord 90 days' notice, even if the contract expires on a specific day? Is this how the term "amend" used in these articles is interpreted?  I have checked the legal definition and nowhere is this term interpreted as "termination"; also we have a clear expiry date on the contract. And should any information about 90 days not...

Off-plan property sales in Dubai drop in Q2

July 16, 2017
c42cbec8c2ec03d709782c5d29cc8157.jpg

Off-plan property sales in Dubai drop in Q2 The total number of residential property sales transactions in Dubai declined 23 per cent quarter-on-quarter in the second quarter of 2017, according to a new report by real estate consultancy Chestertons MENA. The sales of off-plan properties plummeted by 28 per cent in terms of volume and by 43 per cent in value. Meanwhile transactions of completed-units were also down by 17 per cent in terms of volume and 7 per cent in value – as compared to the first quarter of the year. Sales were “seemingly impacted negatively by the onset of summer”, the report said. “The positive momentum from the first quarter did not translate i...

Dubai rental and home prices ease during the second quarter, Asteco says

July 11, 2017
4f7944382c0ec41f6ff12b2fbecbbfa9.jpg

Dubai rental and home prices ease during the second quarter, Asteco says Dubai rental and home prices eased for a second straight quarter on the back of rising supply, according to Asteco, the Dubai-based real estate services firm.  Apartment prices fell 2 per cent quarter-on-quarter and 7 per cent year-on year, the company said. Housing supply is expected to double in 2017 to 17,700 units compared to 8,750 in 2016, according to Asteco. The growing supply is likely to amplify the downward price pressure in the second half of the year, the agency said.   That's good news for tenants who are now in a strong position to negotiate better deals for themselves, the agency said...

Stay in the know!

Sign up for our Newsletter