Tenants in Dubai are resorting to some alternative solutions after the rise in rental prices

rawda samy - | UAE

Consequently, tenants in Dubai are turning to a variety of alternate solutions in response to the increase in rental prices.

Tenants in Dubai are moving to smaller apartment units due to rising rental prices.

Due to rising rental costs, tenants in Dubai are moving into smaller apartment units.

As a result of record-high rents and rising demand, tenants in Dubai are opting for smaller apartments within the city.

The size of newly constructed real estate units in Dubai is approximately 12.5% less than that of older condominiums.

Because rents in many regions of Dubai continue to be at record highs, tenants are increasingly opting to relocate to smaller properties inside the city.

Executives in the industry claim that the influx of young professionals and families with fewer children is fueling the desire for smaller dwellings. Landlords also prefer such units because they are more inexpensive, easier to rent out, and deliver robust returns on investment.

While this is ongoing, residents looking for larger homes are moving to the outskirts of the city, where larger units are still available at a reasonable price.

As a result of the high prices associated with established neighborhoods in Dubai, more and more people are choosing to purchase larger properties on the outskirts of the city at lower price ranges.

Additionally, the size of new property units in Dubai is lower than older ones, by around 12.5%, despite the fact that prices have increased significantly in the years following the pandemic. This phenomenon persists even though prices have experienced a significant decline.

Rental prices are rising in Dubai.

Rents in Dubai are going up at an alarming rate.

Despite the fact that plot prices have increased by more than sixty percent in the previous year, developers have also created smaller units in order to retain strong profits.

The coronavirus epidemic has caused both property prices and rentals to steadily increase, finally surpassing their highest points in 2014. We anticipate a twenty percent increase in rentals in Dubai's top districts this year. This is due to the fact that the population of the emirate continues to grow, which drives demand for properties.

The senior leasing manager at Betterhomes, Jacob Bramley, stated that tenants who are price-conscious are undoubtedly looking into smaller units. Considering that younger developers typically offer smaller properties compared to those completed more than 10 years ago, this is especially true.

According to Sachin Kumar Singh, the business head and managing partner of Foremen Fiefdom, rent increases are putting a strain on tenants and pushing them to make difficult decisions.

As a result of the cheaper cost, many people are finding smaller units to be more appealing, which has led to an increase in the demand for these smaller places. This trend is increasing the prevalence of mid-market apartment complexes, catering to those priced out of larger units, and driving future construction. According to Singh, "some critics argue that this introduces speculation into the market, despite the fact that it adds to the overall supply of rental properties."

Furthermore, he pointed out that the affordability issue highlights the need to reassess the methods used to stabilize rent.

Usama Sukhera, who is the chief of the leasing team at Huspy, believes that smaller units are suitable for young professionals who are moving to this area for the first time, as well as those who have families with a modest number of members.

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