Emiratis move to bigger properties as rental costs in the city plummet
Thanks to declining rents, Dubai tenants are able to upsize to bigger properties or negotiate with their landlords for renter-friendlier contracts, Zawya reported.
Many residents of the emirate are essentially ‘right sizing’ or moving to apartments that were out of their reach earlier due to budget constraints.
Around 61.4 percent of Dubai residents who moved during the last six months did so to a bigger residential unit, while only 16.2 percent downsized, according to a survey conducted by moving service provider Servicemarket.com. Around 23.4 percent moved into a home of the same size.
“Rents have been decreasing due to increased supply of new units, enabling an increasing number of Dubai residents to move to bigger and better homes,” commented Bana Shomali, founder and CEO, ServiceMarket.com.
Only 35.5 percent of respondents who moved are paying higher rents, according to results of the survey.
“It has also become easier for growing families to find bigger homes that fit within their existing budget.”
Apartment and villa rents slumped 4 percent and 3 percent, respectively, in the third quarter of the year, according to Chestertons estimates.
Declines appear to be most prevalent in smaller apartments, the consultancy noted. Rents for studios dropped 6 percent while those of one- and two-bedroom units sagged by 4 percent.
“In the past, smaller unit types have been more resilient. However, due to increasing stock, these units are becoming more volatile,” Ivana Gazivoda Vucinic, head of advisory and research for Chestertons Mena, told Zawya.
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