Friday, February 7, 2014

Villa for rent in Dubai a more sought after option then buying property according to a new report

The number of UAE citizens who rent property is dramatically greater than those who own homes in the UAE, based on a nationwide review by propertyfinder.ae.

A big expatriate population and soaring property prices have raised leasing, explained Renan M. Bourdeau, deputy President of propertyfinder.ae.

“Home cost increases in 2013 have made buying much more costly, their interest is automatically shifted to look for an apartment or villa for rent in 
Dubai. Additionally, tighter credit standards for mortgages, capping of the loan-to-price control at 75 percent and doubling of property registration costs signify unless you have enough to place a healthy deposit right down to secure a mortgage, you will need certainly to stick with rent.

“It’s no surprise then that apartment and villa for rent in Dubai has become so popular as would-be buyers feel priced-out of the property market,” he said. According to Bourdeau, the rental market has also benefited from improved laws.

We observe landlords getting round these laws by telling renters that they want to transfer or want to sale the property to be able to fit it back in the marketplace for a bigger price, “So obviously, these laws and increasing rents are not driving people to book in how we'd like,” he added.

Transferring laws on rent rises and the length of a tenancy,” he explained Greater stability have been induced by “RERA into rental contracts.

Apartment rents surged by 50 per cent while renting prices grew 20 per cent in 2013, a current statement by Asteco observed.

“Affordable stock arriving up in neighborhoods such as for instance Dubai land, Dubai Sports City and Jumeirah Village Group is starting up the marketplace to a wider investor phase.

The report attributed the increase in rents to continued unrest in the Arab region, Dubai’s successful Expo 2020 bid and an expanding economy.


“This will probably motivate more individuals to look for properties within there reach and slowly shift the focus from renting,” he added.

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