Dubai apartment rental rates surges up to 20.2% in October 2014, ever increasing demand for residential units is one of the factors. According to the news published in Gulf News, the cost of living in Dubai is getting higher. Many tenants are either moving to shared spaces or location which is cheaper. The average villa and apartments rental rates have gone up nearly 18 percent in past 12 months.
Dubai Rental Price Index shows that rental prices have gone up 20.2% in October 2014. On the other hand, the new supply is already offered by many developers. Some of the properties offered by developers were gone after the launch.
It is due to continuous demand of residential units in Dubai, which makes the rental prices go higher. According to one of our Senior Property Consultants, “Rental prices should remain stable because the rental prices affect the real estate market in Dubai. It is very important to have equal number of demand and supply.”
According to Gulf News, increase in rents forcing Dubai residents to look for more affordable locations. In a survey 300 residents say that they are planning to relocate to other areas due to high rents.
More than 90% tenants said that their landlords have increased the rents in 2014. Neighbor emirates Sharjah and Abu Dhabi also show increase in rental because many people moved from Dubai to Sharjah and Abu Dhabi.
At Bluechip Real Estate, we have launched off-plan and ready properties for investors and individual buyers according to the market prices.
The overall real estate market is stable with no decrease in sale prices. Some of the investors are waiting for prices to go down because there is a perception that prices may go down 1 or 2%.
According to our experts, prices will remain stable because of the increasing demand. The occupancy rate in Dubai is now at 88%, which is quite higher and a good sign for real estate market. Tourism industry is also playing an important role in Dubai Real Estate market.
If you are looking for market information or planning to invest in Dubai Real Estate, Contact one of our Property Consultants at 04 395 1212 or visit www.bluechiphome.com