Market For Dubai Rental Properties Starts To Heat Up In 2012

The Dubai rental properties segment has been heating up lately

. Property transactions have shown an upward rise following the bottoming out in rates over the past year or so. The burst of the realty bubble may have singed many a financial plans, but its had a sobering effect on the rest of the deals.

In-fact, the transactional data captured last year has thrown up some interesting vignettes of information. Expatriates contributed to over 25% of the total revenues in the realty segment with each transaction valued at an average price of 1.5 Million AED. Buoyed by the confidence inspiring measures of the local authorities, the realty segment has been seen generating some serious traction in the year. Outbidding their compatriots from around the globe, citizens from Russia, Iran, India, United Kingdom and Pakistan emerged as the top 5 property investors last year. The authorities are hoping that such kind of activity should be strong enough to stave off the speculative category of investments that led to the property bubble in the first place.

But it hasnt been a rise-rise situation on the property front. The market has shown signs of maturing with the revelation of a dual nature in the demand-supply conditions. Those who made their purchases at the peak of the bubble would do better to bring down their expectations in terms of their return on investments.

One thing is clear however, communities and settlements that were sound in their infrastructure and other common services have been the first to bounce back. Demand for housing in Dubai has been coming in for places like the Emirates Gardens, JBR, the marina area, communitys further downtown and the Greens projects, etc. Construction quality, maintenance schedules, level of infrastructure support and transport connectivity are some of the factors that are playing a major role in this upward trend.

The government too is playing its role in assisting in the recovery of the market. It is working in close conjunction with key developers to quicken the release schedule of under-construction units into the market. Popular areas earmarked for a boost in commercial as well as residential stock include the Dubai Marina area, the Parks settlement, Dubai International City, Palms, Jumeirah Village and the area surrounding the Dubai Silicon Oasis development. The coming year is expected to see almost 30000 units being added to the pre-existing realty stock. This spells great news for those in search of houses to rent in Dubai as the added stock is expected to keep the pressure on those looking to charge higher rentals. A quick word of advice though. Experts are being cautious in expressing that the low rental scenario is expected to be limited to only certain categories of housing stock. Thus, itd be wise to conduct the due diligence and choose between a lavish apartment or a standard villa as the mode of residence.

by: Alfrenzo Rodrigz

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