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Property firm sees 24% rise in UAE rental deals
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 14 June 2009Posted on Thursday, 18 June 2009
some data
Posted by Sachin Bharti Gupta at 09:25 UAE time
I have not followed this thread entirely, but just adding a small piece of data on the rental prices.
A friend of mine who has a 2bed aprtment in JLT (Green Lakes), had put up his apartment in the rental market two weeks back. For most of the time he received offers not exceeding AED 100,000 which he kept refusing. Yesterday night he closed a deal for AED 120,000! Signs of improvement? You decide.
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Posted on Tuesday, 16 June 2009
Whats a deal?
Posted by Jebel Ali Baba at 08:10 UAE time
You're all right folks. But I have to add, that the RE agenccies also call it a deal if a landlord aks them to rent his propertry out. So deals are always vice versa - offer and demand. At the moment the offer is still far higher (and will remain) than the demand. Prices are still downsliding. Wait till after Ramadan to make any desision.
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With friends like Omar, who needs enemies
Posted by Geriant at 07:59 UAE time
The ongoing ranting of Omar reminds one that one is judged by the company one keeps. Anyone getting the benefit of Omar's extreme new media patriotism should run and hide. This is such an amateurish attempt to sew false optimism.
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Posted on Monday, 15 June 2009
True 100%
Posted by Omar at 16:47 UAE time
I have a listed apt. and already got at least 20 calls for rental in one month. Yes, prices are lower but demand is there.
There are different factors that lead to such a rise:
1- Almost everybody in Sharjah & Ajman would dream of living in Dubai instead of driving all the way to Sharjah / Ajman.
2- Many people who come from Abu Dhabi , Al Ain, Northern EmirATES, Oman, Qatar every single week-end would love to have a permanent flat in Dubai if prices are reasonable.
3- Many people who used to share bcz of high prices prefer to have privacy and now it's the time!
4- Many owners prefer to offer their current apt. for rental instead of sell toff at low prices.
5- There are many people who have safe jobs and thus, afford improving their level of accomodation
6- There are still some people coming to Dubai! Fly Dubai, Emaar malls, new hotels (not like before but still!!).
7- Some firms might consider having guest house instead of paying hotels for their staff who come from Saudi, India, Kuwait, UK, etc...
8- Some people, who can aford, would not mind having 2 houses! One in Dubai and one in Dubai Marina / PJ as a relaxing place!
9- Dubai Marina / Palm Jumeirah are all icons by all standards so people will always come.
As a result:
a-Prices in Sharjah have fallen (1 bedroom for 25k). So is the case with International city.
b- Lots of activities in and out!
c- The market is getting more competitive
In my opinion, prices of rentals will fall even further by 30-40% bcz too much is being offered. Jumeirah trianle, Sports city, Discovery garden, Tcom, etc... NOT BAD for tenants but bad for buyers bcz prices for sale will NOT fall!
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@ "R"
Posted by Sand Jockey at 15:42 UAE time
Slightly off topic but you can't call it positive equity if you can't sell the property and avail yourself of that equity.
Go ahead and try to sell your home and see where the positive equity sits.
Back on topic, I'm so glad I'm not the only one who sees through this ruse. The Mahoney's ought to be ashamed of themelves!
SJ
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Increase in leasing
Posted by Madjedi at 14:59 UAE time
This is no surprise as tenants are reducing their costs when their existing tenancy agreements (with high rent) expire.
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Dear John
Posted by r at 14:41 UAE time
"Hard working people" and "disgruntled tenants" are not mutually exclusive. Being ripped off for years... i can’t help but think more-fool-you as you could have left any time you wanted. To reiterate my point don’t you think your self expressed frustration and sense of ‘revenge’ may be preventing you from having a balanced view on this topic even a little?
Lastly, not a landlord, but a fortunate to be homeowner in Dubai with a small mortgage and a great deal of positive equity. There are many of us.
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24 % rise is not a real demand
Posted by Michael at 14:30 UAE time
I already sent an email to the editor of this article. The information are published half. BH got such a response only because they offered AED 58,000 for one bed room apartments in 12 cheques for one day in selected properties. I met an agent of BH yesterday and he told me about that. So for sure it is not a real demand - people just try to save money in moving to cheaper flats with more cheques. This news is another bad try to manapulate the truth about the real situation.
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BH's reported figures...putting 24% into perspective
Posted by Simon at 14:13 UAE time
Some interesting comments...and some very sensible ones too.
Lets go back in time...May 08, last year...Dubai was at its height of sales frenzy. Leasing was not BH's mainline of business, SALES where.
Lets assume their leasing figures where 100 units for the month of May 08...and May 09, they were up 24%...an increase of 24 more units??? that is hardly a real rise when SALES have dissappeared.
Lets be generous and say BH's did 200 leases in May 08...50 new leases in May 09 than in May 08...again hardly a great increase in what is now the mainstream market for agents/brokers and BH's.
Factor in the indisputable fact that there are 50% less brokers in the market than there were in May 08 and you can hardly say a 24% rise in BH's is an achievement!
I've done 500% more leases this year to date than I did in the whole of 2008...why? because I only did '1' lease last year as oppossed to 5 this year to date! My God the market is BACK!!!
sense the sarcasm...my figures are true but its no reason to celebrate.
The article is a false flag for optomism...
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Response to "disgruntled tennants???"
Posted by John Thomas at 13:32 UAE time
Dear "R" - we are not disgruntled tennants, we are honest, hard working people that have been ripped off in a disgusting manner by the landlords over the past few Years!! - in addition we are also realists, most of the people posting comments are highly educated individuals that have lived in numerous "completed and established metropolis" around the world, with high living standards and realistic rents!!so most of us do know what we are talking about!! - You sound like a "disgruntled landlord" to me - what happened? Payback stinks, doesn't it?? - It's called life, face reality and live with it!!
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disgruntled tennants???
Posted by r at 11:29 UAE time
It would appear that only disgruntled tenants post comments on any property article that appears on AB. Comments that perhaps says more about the contributors than the story itself.
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Article is OK but the headline is not justified.
Posted by Westie at 10:29 UAE time
The casual reader (face it that's most pop.) sees "24% rise in rental demand".
We all know reality is far far from this.
Something like "Property firm announces rental growth contrasting UBS and Deutsche Bank projections" or something like that.
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As usual...
Posted by Jason at 09:58 UAE time
Yet another person in the real estate industry decides to put forth words with no official figures to back it up. If there is a rise, i'm sure it's just because people are leaving their current, overpriced housing and moving into newer places where the rent is far more agreeable. I'm sure we all know it's not because there's an influx of new blood.
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OMG
Posted by ali at 09:05 UAE time
24% increase...sweet...now silly billy...whats the source to support your wishfull thinking....BH are not doing good at all...shhhhhh dont tell this to any one ;-) lol
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98.5 % of Statisics are made up on the spot!!!
Posted by sanchez at 09:02 UAE time
What a load of piffle!!! Billy the sales bunny (who may have been a hoasty 2 months ago for all we know) say blah, blah, blah....and it becomes fact....oh because she works for better homes
Drill down lazy jornos....how many deals did they do last month, at what rate, and this month, at what rate???
We all know that every agency in town has repositioned their business from sales/flippers to rentals because it has been the only way to keep the money coming in. Those that have survived anyway. Notice all the "freelancers" getting squeezed out of the market as the big agencies fight for market share and survival.
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