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Property firm sees 24% rise in UAE rental deals
UAE real estate agency Better Homes on Sunday revealed that its number of rental transactions during May were 24 percent higher than in the same month in 2008.
The company said the increase in business was part of "some positive results" over the past two weeks, where both general enquiries and transactions were on the rise, following a sharp dip in recent months amid the impact of the global financial crisis on the UAE.
Following an Open Day event last weekend at its Jumeriah Beach Residence branch, Better Homes said it recorded an "overwhelming response" to its summer offers of inventory for sale and for rent.
Billy Rautenbach, director of operations, Better Homes, said: "The positive result indicates that despite the recent market downturn, if the right product is offered to the client at the right price, at the right time, there is a good opportunity to transact units within both sales and leasing."
Her comments came amid gloomy predictions from UBS and Deutsche Bank last week which predicted that house prices in the UAE still had some way to fall before hitting the bottom.
UBS analysts predicted a further 40 percent drop while Deutsche Bank feared prices would fall by up to another 20 percent.
But Rautenbach remain upbeat, adding: "Our number of leasing transactions is looking very positive. In May this year, we executed 24 percent more leasing transactions than in May 2008."
With talk in the market of mortgages becoming available soon, Better Homes said it expects to see continued success in leasing and see an increase in property purchases sooner than expected.
"As soon as lending becomes available at a wider scale, we expect to see a rise in sales transactions," added Rautenbach.
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Posted by Sachin Bharti Gupta on 18 June 2009 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.
Posted by Jebel Ali Baba, Dubai, UAE on 16 June 2009 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.
Posted by Geriant, Dubai, UAE on 16 June 2009 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.
Posted by Omar, Dubai on 15 June 2009 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!
Posted by Sand Jockey, Dubai on 15 June 2009 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
Posted by Madjedi, Paris, France on 15 June 2009 at 14:59 UAE time
This is no surprise as tenants are reducing their costs when their existing tenancy agreements (with high rent) expire.
Posted by r, dubai, uae on 15 June 2009 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.
Posted by Michael on 15 June 2009 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.
Posted by Simon, Dubai, Dubai on 15 June 2009 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...
Posted by John Thomas, Dubai, UAE on 15 June 2009 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!!