Tenants in Dubai are increasingly choosing to renew their present homes rather than relocate due to the recent increase in rents. Because of Dubai’s population increase, rental inventory is under tremendous strain, with occupancy levels reaching multi-year highs around the emirate.
“The recent population expansion in Dubai continues to put pressure on today’s rental market, and we are seeing quick price hikes in the most popular regions, with occupancy in Dubai at a five-year high. Overall rental market volatility has decreased dramatically as renters prefer to stay put and renew rather than confront today’s costs “said Richard Waind, Betterhomes’ group managing director.
According to Prathyusha Gurrapu, head of research and advice at Core, a real estate consultant, the rental market is experiencing sharper increases than the sales market, growing by more than 25%. Furthermore, residents opt to stay in current flats even if the rent drops owing to the expenditures connected with the relocation procedure.
“Being imposed a roughly 25% rental rise in a year makes it difficult to renew or endure relocation fees. Because inflation and growing living costs are outpacing wage gains, and because continued rents significantly reduce discretionary income, many renters are forced to downsize, relocate to more affordable places, or, in many cases, buy because rental outflows exceed mortgage payments.”
According to Richard Waind, the FIFA World Cup Qatar will significantly improve the short-term rental market in Dubai, potentially leading to a record quarter. “Dubai’s short-term rental sector is still expanding.