Rental prices for affordable property increasing both in Dubai and Abu Dhabi

16.08.2015
Rental housing in the old Dubai is gaining in price, but in Abu Dhabi rents are expensive everywhere and rising: Dubizzle.

Despite the fact that average prices both in Dubai property sales and rental segments declined markedly in recent months, some areas are showing growth, and in Abu Dhabi, this situation is observed over all areas — Dubizzle analytical report says.

Rentals for studio apartments in such areas of old Dubai, as Deira and Bur Dubai, increased by 18% and 8.3% in the 2015 second quarter, respectively. While three months ago a studio apartment annual rent there could cost an average of US $ 16,300, today the cost of such housing annual rent is not less than US $ 17700. Larger three bedroom apartments rentals in these areas, too, increased by an average of 5.33% in the quarter, from US $ 40,800 to US $ 43,000 per year.

The rise in rental prices in old Dubai, according to Dubizzle experts, is driven by growing demand for these affordable units, with insufficient supply of a new housing at the background.

In general, the pricing both in real estate rental market and sales market in Dubai remains highly uneven. In the UAE capital Abu Dhabi, the situation is more stable in terms of the more even increase in rental prices. For example, two-bedroom apartment rentals on Saadiyat Island increased by 10% in three months, and three-bedroom apartment rentals grew by 14.3% during the same period of time.

But the central island of Al Reem still remains the most sought after area in Abu Dhabi rental market: potential tenants did more than two million searches for rental housing in the area. At the same time, Dubizzle experts called Mussafah East area of Abu Dhabi, where Mohammed Bin Zayed City and Khalifa City residential complexes are situated, the most affordable district for tenants in UAE capital.

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Lease process (Rent out)

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)

1 hour

Contract of the lessee and agency.

Up to 5 days

Real estate search.

Selection of optimal options.

Up to 2 days

Signing of the lease agreement

Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process

1 hour

Contract of the tenant and agency.

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

1 Week

Registration of the contract of purchase / sale

Customer charges:

  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration

Additional services:

Property management

Sales Process

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

None

the management process

1 hour

Contract of the owner and agency

1 year

Rendering of management services

1 day

Reporting

Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process

1 hour

Contract of the tenant and agency.

From 3 days

Selection of optimal investment options

1 Week

Registration of the contract of purchase / sale

Expenses of the investor:

  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration

Additional services:

Property management