Due to consistent changes in real estate demand and supply, market dynamics constantly fluctuate in Dubai. Recently, the market has greatly been in the favour of tenants. More people are rushing to bigger homes in beautiful communities at reasonable prices. Lauren Doble Alshehhi’s family is a classic example of a family moving to their huge villa of four bedrooms located in Jumeirah after leaving their 3-bedroom apartment in Business Bay. This is one of many examples of such types. Visit luxury property to get more information.
Alshehhi elaborates on the need for a house saying that their growing and sizeable family required a larger place than what they already had. She describes the importance of having two storeys especially with toddlers at home; they do not want to disturb the baby if someone is working in the kitchen. As soon as they got learn about a villa in a similar and even lesser price located in an excellent location of Jumeirah, they decided to relocate from their apartment to a huge villa.
For the previously rented place, Alshehhi paid Dh195,000 for a furnished residence located at Damac Maison. The yearly increase in prices would have resulted in an increase of Dh10,000 in the rent; if they had continued to stay here. But the decision of moving to a villa proved to be very favourable. The Alshehhi family secured an additional bedroom, a beautiful garden in the villa, an extra balcony, maid’s suite, parking for cars while being in a central location. The paid a total rent of Dh190,000 for an entire year; which is Dh15,000 less than if they had continued to live in their apartment.
Another example is of Bobak Torab who worked as a real estate broker himself. He used to reside in a studio apartment in the Discovery Garden, with a rent of Dh46,000 per year. He stayed in the rented property for a total of three years before relocating to a scenic town house in Springs. The two-bedroom mesmerizing residence costs him Dh120,000 per year.
It was a sensible decision of Torab to move into a bigger house for a fairly decent deal. He says that he couldn’t move earlier as the property was out of his budget. As soon as he got the ability to afford, he moved to his new house. He says that it is purely a rentals market, as people prefer to live as a tenant than buying the property.
He further delineates by saying that as the market grows further, there will be more choices for the buyers as well as tenants. It is becoming the customer’s market, with too many options. The people living in Sharjah are also contemplating to relocate to Dubai as they can afford a decent place here now.
The examples of residents moving to better spaces do not end here. There are hundreds of such examples in the city of Dubai. The British deputy nursery manager Amy Pritchard, who has been living in UAE for last four years, resided in Al Reem at Arabian Ranches with her spouse. Initially, they lived in a small house of 2 bedrooms. She says that they move to Arabian Ranches to live close to their relatives, have beautiful parks and pools nearby. They signed a deal in August 2014, while the market was not in favour of tenants and buyers. They paid a total of Dh145,000 per year, however decided to move after three years when the strongly felt a need for a bigger house due to growing family.
Due to having relatives and friends nearby, they decided to move to a larger residence while staying in Al Reem. Pritchard says that they shortlisted many places but finally chose to live in Al Reem 2. The offer was finalized at Dh125,000; the landlord agreed to assist with some maintenance work. Pritchard strongly believes that as more real estate projects continue to develop in Dubai, the already established residences including Arabian Ranches will have to face increased competition from latest projects.
Some people still prefer to live in already developed communities to feel secure and close to relatives residing nearby; however growing projects in places like Mudon, Damac Hills, Town Square and Reem are quickly evolving to become big neighbourhoods offering quality life to residents at a lower price. Therefore, the competition in Dubai real estate is expected to grow further with more projects and tenants coming in the metropolitan.