Due to record-high rents and rising demand renters in Dubai choose smaller apartments within the city

Industry insiders believe the influx of young people and smaller families drives the desire for smaller dwellings. With the help of A LAND Properties landlords also choose these apartments, penthouses, and villas since they are easier to rent out in Dubai, are more economical, and yield strong returns on investment.

In the meantime, those seeking larger apartments are relocating to the city’s periphery, where prices are still quite reasonable. According to a previous study by Khaleej Times, due to high prices in established Dubai communities, more individuals are choosing larger residences at lower price points in the periphery.

Furthermore, despite a significant increase in pricing in the post-pandemic period, freshly built units in Dubai are smaller than older ones by about 12.5% currently.

To retain large margins, developers have also been forced to produce smaller apartments due to the growing site prices, which have increased by more than 60% over the last 12 months.

Real Estate Prices and Rent

Following the coronavirus outbreak, real estate and rental prices have steadily increased, exceeding their 2014 highs. According to estimates, the growing population of the emirate will drive up demand for real estate, resulting in a 20% increase in rent in Dubai’s finest regions this year.

According to Jacob Bramley, senior lease manager at Better Homes, cost-conscious tenants who are cost-conscious are looking at smaller apartments, particularly since developers who have completed projects more recently typically offer smaller spaces than those who have completed projects more than ten years ago.

Rent increases are straining tenants and making difficult decisions for them, according to Sachin Kumar Singh, managing partner and head of business at Foremen Fiefdom.

There is a growing need for these spaces as a result of many people finding smaller flats more appealing because they are less expensive. This tendency is also having an impact on recent construction, as more mid-market apartment complexes serve people who cannot afford larger units. Although this increases the available rental stock overall, some opponents claim it encourages speculation in the market,” Singh stated.

He proposed reevaluating rent stabilization techniques as a means of addressing the affordability crisis.

“Since they restrict rent increases from causing significant market disruptions, effective mechanisms can offer relief by promoting an increase in the overall number of rental properties.”

As per Usama Sukhera, the leasing team head at Huspy, individuals who are new to the area and have small families are better off choosing smaller units.

The expanding function of consultants

To come to a mutually agreeable resolution, both the landlord and the renter are turning to property consultants as demand rises and their negotiations become more intense.

According to Sachin Kumar Singh, a lot of renters are looking for trustworthy real estate brokers in Dubai to assist them in finding rental properties that meet their budgets, navigating the renting process, and negotiating better conditions.

To mediate agreements to rent and safeguard the interests of all parties, tenants are also using brokers. Ensuring an impartial and transparent renting procedure requires doing the hotel apartments in Dubai for daily or monthly rent. Verifying ownership titles and other pertinent papers is part of the complete due diligence that renters and their representatives are performing. This guarantees that there aren’t any unreported problems that can jeopardize their tenancy and that the real estate is free from legal concerns,” he stated.

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