Dubai and Abu Dhabi rental market – What to expect in 2019?

Dubai rental market trends

The higher stability observed in Dubai real estate during 2018 has led experts to predict a kick-start recovery in initial few months of 2019. Dubai rental market is expected to spring back to life because rentals of the residential units have already fallen to the maximum extent in most of the areas across Dubai. New supply of property units is expected to become part of the market during first six months of the year and this oversupply will match the rising demand and set Dubai rental market on steady recovery track.

The demand of the Dubai rental properties is expected to originate from the GCC nationals who consider Dubai the best city for enjoying quality lifestyle. Since the landowners in Dubai know that the troubled real estate has turned general investors into astute ones, therefore to increase the property demand and lure the investors to the vacant properties, they provide better amenities and facilities.

Currently the rents are showing high stability in the areas like Downtown Dubai, Al Barsha, The Greens, and Dubai Marina. Although some areas, like Discovery Gardens, Silicon Oasis and Jumeirah Lake Towers, still show rental declines of 5-15%, yet the rate of this decline is expected to slow down with the increase in demand. The recovery is expected to gain momentum gradually and as a result, the rental market may bounce back in 2018.

Abu Dhabi rental market trends

The expected trends for the Abu Dhabi real estate in 2019 are entirely different from that of Dubai real estate. Rents in Abu Dhabi are accepted to continue falling during 2019. In 2018, the supply of units in the capital remained steady, which badly affected the rental rates and thus the problem of oversupply will continue troubling the market in the following year as well.

Especially in 2018, a significant decline in rental rates was noticed in some areas outside the city due to large supply of new units. New supply of 5000 residential and commercial units will strike the market in the first quarter of the New Year. Since the sales prices and rentals have not touched the bottom level, the trend of rental declines will continue.

In order to attract tenants towards the properties, landlords are providing various incentives like grace period of one or two months in which no rent would be charged and free renovation services. Some property owners are even renting out their properties with free utility services and without setting a requirement of annual rental increases.

Widespread Subletting trend can result in Legal action

After the great recession, the conditions of the worldwide countries changed. In Dubai, this change has come in the form of high inflation rate and high unemployment level. To make ends meet, the tenants have started subletting their rented apartments and villas. In subletting actually, the tenant sublet a room or two to someone else without the consent of the owner. According to Dubai law, the tenant who has sublet the Dubai property without the consent of the landlord will have to face legal eviction. According to senior lawyers, if convicts fail to provide the letter of consent from the owner, they will face legal action that sometimes even leads to serious consequences.

As explained earlier, due to economic downturn and recession, the trend of subletting apartments in Dubai is increased in Dubai at a great extent. This trend is especially prevalent among expats working in Dubai. Law and property experts warn every resident of Dubai that if they are paying their rent to their housemates, they might be unknowingly subletting which is direct breach of Dubai laws.

A real estate expert says

According to a Dubai real estate expert, most of the leases entirely prohibit subleasing or state that subleasing will be only legal if they have legal written consent of owner. The expert also stated that most of the individuals are unaware of the fact that subleasing is illegal and if in any case they are taking a sublease then they should stop it immediately as the ignorance of law is no excuse. They should better check the head lease and should confirm that whether the original tenant have the right to sublease or not.

The reason of the widespread popularity of sublease is due to its flexible renting option in Dubai. It divides the burden of utility bills among the residents. The sublease tenant also has no need to sign the contract, which bounds him for 12 months. This ultimately allows the tenants to roam freely in Emirates for jobs without any restriction of living in one place.

Things can get worse

Things can get worse for tenants who are unaware of this law. They have no protection and the tenants can be evicted in matter of days. According to one of the expats, he has been living in an apartment and did not know the fact that the actual owner has no idea that they are living on subleasing. On a surprise visit of the owner, the whole matter was disclosed and the owner immediately took the decision that they would have to leave within one month because he (owner) has no idea that the apartment was being sublet. The expat also added that he had no knowledge of the letter of consent for the sublease of apartments in Dubai.

The lawyers have showed worry for ignorant tenants and are of the view that there can be further complications and problems if the original tenant and the sublease tenants are living in a same apartment or villa. If the original tenant leaves the city then the sublease tenants will have no right to live in the house as they are not the legal tenants. This matter becomes more serious when original tenant flees away and sublease tenants are held responsible for payments and everything.

Focusing on essential repairs to sell property in Dubai

In order to make your property in Dubai attractive for the buyers, you must concentrate on essential repairs before putting it on sale. What is needed is not a major makeover; just simple repairs will do the trick. In order to deal with a tremendous buyers’ market in Dubai, basic repairs serve as an essential marketing tool. Focusing on essential repairs prior to selling your property in Dubai enables you to answer buyers’ questions easily. It also helps you to build clients trust in your property.

The repaired property is far more appealing to the buyers and is sold faster at a much higher price. When a property for sale is in essential need of a repair, it makes the buyers think that there must be more problems than are visible. So it is highly recommended to get your property in Dubai repaired before putting it for sale.

To begin with, you should make a list of the needed repairs and hire a handyman to fix things. Outdated counter-tops and carpets should be replaced and wall makeovers should be carried out. Bathroom tiles should be cleaned or re-grouted. Gutters should be cleaned and drainage problems should be fixed. A very cost effective repair is to mow your lawn. The air-conditioning systems should be serviced and the filters should be changed. Considerable attention should also be paid to the home exterior and its surroundings.

The surroundings of your property in Dubai should be cleaned and de-cluttered. The front yard should be given a professional look. Things like roofing, landscape, wall sidings, pathways and driveways should be given special attention. Porch, fences and patio should also be repaired. Accessories like plants and flowerpots might also be added. These steps are collectively adequate to make your Dubai real estate fit for sale.

Property repair proves to be the most important tool in boosting the value of the property, especially in the competitive real estate market of Dubai. It not only increases the sale price of your property in Dubai but also provides high returns if you give your property on rent in Dubai.

Sell property in Dubai

Sell property in Dubai

Things to watch when investing in off plan properties

In days before slump Dubai government successfully created the demand for the off plan properties in Dubai, which is very difficult. Investors traded off plan properties heavily before slump but when the global recession and slump covered the whole world, the off plan properties were first to get affected. The reason was that off plan properties does not physically exist and in days of recession it is really difficult to make the demand of something that physically do not exists.

Actually, off plan properties are never mend for short term profits. Off plan properties are always for the long term investment planning in which investor has no worries about the temporary phases of slump. Off plan properties have always remained attractive for buyers as the yield far greater results in long term. In here we will discuss some points which will help investors to make a well informed decision before buying.

Palm Jumeirah Dubai

Palm Jumeirah Dubai

Always keeps long term planning

Before even thinking about investing in off plan properties, keep in mind the long term planning. Dubai also offer employments and female models are perfect for hot shoots of advertisings and business events. Many managers, rich investors, real estate agents, book Dubai escorts at escort services in UAE. If you have misjudged off plan properties that they will yield good result in short time period like it does in old times then you are totally wrong. For short-term investment, try to invest in fully developed areas.

Checking the Reputation of Developer

If you are sure about investing in off plan properties then the first thing you need to do is to check the reputation of developer. Check the previous records of developer, how many projects he has delivered, and how many of them were on time.

Work on site

After recession, most of the projects in Dubai were halted, so do not forget to visit the site and check the work going on. Sometimes developers trick investors by showing them architectural drawings and other maps rather than showing them actual construction work going on. Also contact the RERA and confirm the status of the project, as all construction projects and their actual details are available on RERA.

Consider the Location

Location is also an important factor, as some projects are very far from the main city thus take too much time to get developed. Try to invest in off plan properties that are located near to the main hub of the city.