Even in Dubai, price hikes are scaring away property market interest
Dubai's property market may also be more riskier for investors than initially projected in 2014 (File Archive/Shutterstock)
Residential space is becoming expensive in Dubai and while the landlords rejoice on the strengthening of the property market, tenants in the high end localities are eyeing secondary markets for economical rents, said a report.
The shift of tenants spells boom for the secondary market which assists prosperity to prevail across the real estate of Dubai, stated Bayut.com, a leading UAE property portal.
Those expatriates who found themselves renting apartments in the high end localities of Dubai preferred to shift to the secondary markets, in order to maintain their monthly budget, it said.
The real estate agents listed with Bayut insisted that their clients, who were once living in Discovery Gardens and Dubai Marina, were favouring the apartments of JLT as 2013 saw a 40 per cent escalation of rents.
Following the rental trends of JLT throughout the previous year, it was observed that throughout the year the locality experienced increasing trends. Though the studio apartments remained constant following the rental perspective, the one bedroom and two bedroom apartments experienced commendable boom throughout the year.
According to Bayut.com, the two bedroom apartments received the highest rental escalation.
This clearly shows that there was a shift of tenants from the primary market for people generally favoured the expensive apartments, said the property expert.
Many found that they could get a two bedroom apartment at a lesser price than that they were paying for a one bedroom apartment in Downtown Dubai, it added.
The rents of the three bedroom apartments managed to gain respectable affluence as well. The three bedroom apartments started their journey at an average rent of Dh146,173 ($39,788) in January 2013 and by December 2013, the average rents had successfully risen to Dh169,170.
The UAE property portal pointed out that JLT was a favourite among many expats due to its close proximity to Dubai Metro.
Keeping in mind that most of the people hunting for economical apartments are salaried expats who have to work hard making the two ends meet in Dubai, a convenient access to the metro saved them both time and money in getting to and back from their offices, it added.
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