Rising rental prices prompt residents to relocate and downsize

A considerable number of families and individuals moved to more spacious homes with outdoor features during the pandemic.

Many families in Dubai are changing homes due to rising rents in certain established neighborhoods of the city.

A significant number of families and individuals in the emirate moved to more spacious homes with gardens and outdoor features during a period of falling rents, brought on by the pandemic.

However, as life has returned to normal and residential rental rates have risen again across the country, many have chosen to downsize or relocate to less expensive areas.

French expat Christine Quartier La Tente said:

“The main reason we moved out of Springs was the increase in rent. We were paying 170,000 for a model in Springs that had three bedrooms, a large study and a utility room along with a back patio. During Covid-19, I managed to lower the rent to 140,000 dirhams.”

But after the Covid scare passed, Christine’s landlord raised the rent again. She explains that if she wanted to continue living in Springs, the family would have to fork out a substantial portion of their income.

Disburse between 260,000 and 290,000 dirhams per year

“If we wanted to be in the same neighborhood, for the same design, I would have to pay between Dh260,000 and Dh290,000 a year. “So we thought that was enough.”

So the French expats decided to explore the possibility of buying a house.

“I visited many locations in Dubai. I had my eyes on Al Furjan because it’s not too far from Springs and I didn’t have to change my life completely. But that didn’t work because that area is also quite expensive.”

In September 2022, there was a strong recovery in the emirate’s property market. Preferred areas for apartments in Dubai included Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai and Jumeirah Lake Towers (JLT). For villas, Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah and Damac Hills became the most popular areas.

“We decided to buy a house, but our problem is that now we cannot get a 25-year loan because we are 50 years old. Also, we would not like to take out a loan for such a long period. For a shorter loan period, we need to take into account cash flow for my daughter’s school and all other household expenses. So, we realized that we couldn’t take the risk of buying a house to live in. We changed our strategy and thought about moving to a place that was the cheapest possible option and saving money to invest later.”

After extensive research, Christine moved to Damac Hills 2, a community towards Al Qudra Road that has a wide range of affordable properties but offers a luxurious lifestyle.

Longer trips

She explains that despite its location on the outskirts of Dubai, close to the Jebel Ali-Lehbad highway (E77) and the Al Ain-Dubai highway (E66), which could mean longer commutes, she was attracted to this community because to its many amenities. . These include a picnic park, petting farm, dog park, aviary, children’s play area, plant nursery, aquatic and sports facilities and a community centre.

“The travel time to and from anywhere within the city usually ranges from 25 minutes to over an hour for me. About 30 percent of my time is spent traveling. However, these travel times can also vary depending on the distance from the destination. However, to save for future investments we needed a drastic change in rents. That’s how we ended up here. After Springs, we still wanted to be in a community.”

she added.

Christine now pays Dh95,000 a year for a three-bedroom semi-detached house that also has a maid’s room and a backyard.

“The houses here moved very quickly. In April-May 2022, when I visited, the rent was 70,000 to 75,000, sometimes even 65,000. But in the summer, when I started visiting again around June, prices began to rise steadily. Many people were moving from areas with supposedly lower rents, such as Town Square, leading to a surge in demand. Aware that prices would continue to rise after the holidays, we decided to secure a spot quickly.

In the end, the rent for the same villa increased significantly to Dh110,000-115,000. Therefore, it is a strategic alternative to save money.”

Similarly, Mays Aalem has now moved to Al Furjan and pays Dh170,000 as annual rent. Having lived in Springs in larger accommodation, Mays describes the problems that come with the move.

A Canadian expat in Dubai, Alalem said,

“Rents in Springs have increased significantly. The experience of residing in a community contrasts greatly with living in a house without amenities. Our old neighborhood certainly felt safer, particularly when raising children. Additionally, when you move into new accommodation, you should consider purchasing new furniture to fit into the next home. That, in our case, is much smaller than our previous accommodation. “I have had to throw away a lot of things because they no longer fit in my current house.”

Annoyance of change

Filipino expat Jez Riveria, who recently moved to International City from Al Mankhool, explained that better facilities at affordable prices were the main reason for moving.

“Change is always problematic. But when you do the math, it must make monetary sense to live in a certain location. Al Mankhool is very lively and I liked the atmosphere there, but the landlady kept increasing the rent. The place where I live now is a one-bedroom apartment that we (three sisters) share and we pay 2,800 dirhams. It has many grocery stores, parks and a shopping center nearby.”

Jez said.

Meanwhile, demand for housing across the city continues to rise, causing a shortage of available properties. Therefore, landlords experience prolonged periods of little or no rent without tenants confirming a strong and flourishing rental market.

“In my previous accommodation, we paid Dh1,100 for a single partition. That amount increased to Dh1,300 a month when one of my sisters joined. It was later increased to Dh1,500 for two people. Then, in October, he wanted to increase it again to Dh1,700. “So we decided to move.”

the teaching assistant added.

News Source: Khaleej Times