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Tue 13 Jul 2010 10:23 AM

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40% upgrade homes amid UAE rents slump - survey

YouGov Siraj poll also shows split in opinion on UAE real estate prospects in 2011.

40% upgrade homes amid UAE rents slump - survey

More than a third of residents who took part in a survey on UAE property trends said they have upgraded their home in the past year to take advantage of lower rents.

Forty percent told the YouGov Siraj Omnibus survey that they have opted to switch from one-bed to two-bed accommodation as rents in the country continue to fall.

A report released on Monday by Asteco said apartment rents in Abu Dhabi fell up to 15 percent in the second quarter of the year as more supply came to market.

The YouGov Siraj survey, which was conducted last month, also showed that 35 percent of respondents felt the UAE's real estate sector would improve in 2011.

However a further 32 percent saw further deterioration in prices next year while 21 percent saw little or change change.

"Cautious optimism is emerging and while the environment is uneasy, UAE residents are taking advantage of rent dips to upgrade their accommodation," YouGov Siraj said in a statement on Tuesday.

It added that 46 percent of respondents who now live in a three-bedroom property upgraded from two bedrooms in the past year.

"In a still uncertain environment, developers can gain valuable insight into the mindset of the UAE resident - how they've adapted, what they expect and what they plan to do...while expectations are cautious, many residents within the rental market have capitalized on the opportunities the current environment affords them," said YouGov Siraj research director Himanshu Narang.

While Dubai seems to be better placed on availability of residential and commercial units followed by Sharjah and Abu Dhabi; Sharjah is seen to have better value for money outperforming Dubai and Abu Dhabi respectively, the survey said.

It added that migration was geared towards Dubai, more so from Sharjah but also from Abu Dhabi.

Of those who now live in Dubai, 18 percent used to live in Sharjah and among Sharjah residents who plan to move in the next 12 months, 35 percent plan to move to Dubai, YouGov Siraj added.

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Original Joe 10 years ago

With petrol prices going up in a few days this is another box to tick as a reason to move to Dubai for those in Sharjah considering a move closer to where they work.

Vivek 10 years ago

To make the survey meaningful, it is important to disclose the number of participants. If the number is below 200, the survey has little meaning..

AlexT 10 years ago

Are these people on a different planet? Let me understand that, instead of staying were they are and use the extra savings to consilidate debts of save for a bad day they upgrade!!!!!!!!!!!!!!! Mr. HSBC is right they desrve what they get. Go Dubai go, they are bloody asking for it.

Anonymous 10 years ago

Not everyone can stay where they are and just pay a lower rent. Not all the owners are negotiating to keep tenants once leases near their end. I have friends who leased at the peak of the market in Uptown Mirdif for 145K for a 2 bedroom terrace apt. Six months ago they moved out. The rents at the time had dropped down to 110K but the owner would not budge. Now rents have dropped down to 85-90K for the same 2 bedrooms. That owner left his flat empty for 3 months before giving in to the new realities and leasing it for 105K. Our friends were asking for a reduction down to 120K. In this situation both ended up losing. Our friends moved away from a flat they loved but they couldn't justify paying 145K when their neighbors were paying 110K but the owner was greedy and living in the past.

simran 10 years ago

hi even if rents have gone down , people have equally lost jobs , lost a lot in terms of their bank balances , equities and even landed up in the most frustrating situations . Landlords do not realise that being unjust to the people who paid them and who need help today will work beneficial in the long run .

Deepak 10 years ago

20 fils per litre is going to increase in petrol , around 80 fils per gallon . which means pertrol is almost increasing by another 15% . 20 fils look less but if you calculate if you fill tank once you are paying more about 15 - 20 dhs. I think is not justified.

Anonymous 10 years ago

I can't believe " Never Learn" said that. People used to make a choice... pay a good amount and stay in sharjah and drive all the way to dubai everyday in heavy traffic OR they pay crazy rents for a sharing accomodation in dubai! Now when they can finally take a place of thier own and live a decent life, people say that they never learn? Now thats not right is it? Everyone in Dubai has a right to live a decent life, and everyone has to admit that Dubai was just way to expensive for any one!...

Durteger 10 years ago

Don't worry Salik fees will most likely rise too as the RTA needs funds to continue its massive road building project