Dubai rents to rise just 5% in 2009: EFG

Posted by: Vikram Tuesday, 13 January 2009 3:27 PM[UAE] - UAE

Please note that expat families are packing their bags ....hundreds of them and mostly those who are living in crowded areas of Dubai (Bur Dubai, Karama, Diera etc). It is clear that by the time schools close (around March), most of them would send their families back to their home countries and we'll see a sudden downfall in rents as a result. This is bound to happen. There are reports from schools on sudden increase in TC applications...an indicator of what is in store ....for Dubai's consumer market.

Posted by: Shamnas Monday, 22 December 2008 9:05 PM[UAE] - UAE

I rented a flat in Sharjah, Al Nahda for 75k+ extras comes to 85k!! Now the basic rent is 90k and God knows how much the extras come to! I jumped and signed the contract cos they kept threatening that the next moment they would change their mind and another 5k!! Most of these extra payments don't have receipts! Can you believe that? And if you question them, their blunt answer is: Do you want to see me selling the same flat to you after 2 days for 25k more??!!!! I mean what is this? Daytime Robbery??? The govt's 7% per annum hike must be the most abused rule in the country!

Posted by: SN Wednesday, 17 December 2008 4:12 PM[UAE] - UAE

MO, its people like you who are giving a bad name to landlords. Try be like Khalid and I am sure you will make more money in long term that way. God helps those who helps others, so don't be greedy, you'll leave all these things here when you die.

Posted by: Maria Wednesday, 17 December 2008 3:47 PM[UAE] - UAE

Hi Gambit and Walter, I in no way support Mo's response. However, I guess the reason why he responded in such a manner is because he feels cheated for having bought the apartments at a high rate (or hoping to sell for a profit); now his plans have probably crumbled. However, I think that something is better than nothing - why leave the property empty for a year or so? This is some sort of stubborn principle, not business logic. I want to comment on a point picked up by Walter. Yes, sharing is illegal. Yet, how are people supposed to live here? So many young individuals try to make a living here, for example. They live in posh areas, but in the end, most of them are renting a single room. This in itself is not convenient, especially once you are past university, but it is understandable that people want a nice neighbourhood, good neighbours, and a place close to work. Even places like the Gardens, which used to be AED21K for a nice 1 bedroom apartment have become AED90K or more. My friend just got a room there. What about young people out of college? What about young people trying to start a family? In this country, many of us have no relatives. The moment a baby comes along, 1 parent probably stays at home. The other ends up struggling to pay the bills. Some of my colleagues are pleading with management to increase the housing allowance.

Posted by: gambit Wednesday, 17 December 2008 6:26 AM[UAE]

landlord will still increase bec. of GREED! see one of the comment of the owner? he would rather see it empty than lower its rent. unbelievable!