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According to a new survey, most UAE residents paid the same rents in the Q2 or, in some cases, even higher rents then they used to 12 months ago. So, where those cutting down figures come from? We’ll reveal some secrets for you.
The website comparing survey data in different market areas yallacompare conducted a survey of tenants in the UAE, according to which the actual rents for majority of tenants in Dubai and the UAE did not decrease, and in some cases even went up.
The results were obtained on the basis of the portal’s own Consumer Confidence Index Q2 2018. During this survey, 1347 UAE residents were interviewed. And the results contradict generally accepted opinion that UAE rentals were dropping sharply.
For example, two recent studies by Chestertons Mena revealed that apartment rentals in Dubai fell by 4 per cent in Q2 2018. And according to a July study from Bayut real estate portal, Dubai rentals declined by 2-9 per cent in the last 12 months, while an April report by Cavendish Maxwell recorded a 5 per cent decline in Dubai rents on an annual basis.
However, in fact, only 20.4 per cent of the UAE residents currently pay less for their rented homes than they did 12 months ago. More than 40 per cent pay the same rent as last year, and 38.6 per cent actually pay more.
Some survey respondents (9.9 per cent) indicated that they started paying higher rents due to moving to a new, more spacious and more expensive housing. But the majority (66.5 per cent) still live in the same rented apartments. Of those who stayed, 30.8 per cent faced and increase in rents compared to last year’s; and this is 21 per cent of all survey respondents, that is, almost a quarter of all UAE’s tenants.
"There's clearly a discrepancy between the perceived wisdom that rents in the UAE are dropping and what people are actually seeing on the ground. The confusion arises from the sampling methods employed in surveys," said Jonathan Rawling, CFO of the comparison site.
“Traditionally, real estate reports focus on the data found in new property listings. With this data, we can track price trends of newly listed properties. This is useful but the fact that the property in question is listed means that there has been a change in tenant. Indeed, this data says nothing about those who are staying put under their existing tenancy contracts. Our data also considers whether tenants remaining in the same location pay more or less this year compared to last. Simply put, consumers may get a better deal if they move but are generally not paying less rent for the same property,” Rowling explained.
That is, for the majority of UAE residents, who stayed in same rented apartments and villas, news about the rentals drop had little effect on reducing their own expenses. Only 19.8 per cent now pay less than a year before for their rented housing, and 49.4 per cent pay the same rent.
And of those who managed to negotiate a discount from their landlord upon existing tenancy contact renewal, the majority (52 per cent) pay only 5 per cent less than last year. However, for a housing with a rental price of, say, AED100,000 per annum, the discount will save you extra 5,000 dirhams a year.
Therefore, we recommend tenants to try to negotiate with their landlord about the current rent reduction, if possible. But it is important to negotiate more than 90 days before the existing tenancy expires, otherwise it will be automatically renew under the same terms.
But if you want to rent a new more spacious and maybe even more affordable apartment in Dubai, IMEX Real Estate will try its best to find the best possible option for you. Address the professionals! Our contacts:
Tel.:+971(50)2528188 (Whatsapp , Viber, Telegram)
Toll Free: 800-IMEX (800-4639)
IMEX REAL ESTATE BROKER LLC, UAE
Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE
Email: pm@IMEXre.com
Skype: resident69
