In a number of regions of the UAE, rental costs are increasing in 2024.
Dubai: Residents reduce and seek out more affordable areas due to escalating rents.
A substantial proportion of households and individuals had relocated to houses featuring outdoor areas and more ample living space in response to the pandemic.Due to rising rentals in certain established neighborhoods of Dubai, a significant number of families are relocating.
In response to the pandemic-related rental downturn, a sizable portion of families and individuals living in the emirate moved into larger homes with gardens and outdoor amenities.
Throughout 2024, rental costs in the UAE will increase in a number of regions.
With the return to normalcy of life and the subsequent increase in residential rental rates nationwide, a considerable number of individuals have chosen to downsize or relocate to areas with lower costs of living.
In an interview with Khaleej Times, French expat Christine Quartier La Tente stated, "The rent increase was the primary factor in our decision to vacate Springs. We paid $170,000 for a type in Springs that featured a backyard, three bedrooms, a spacious study, and a maid's room. " Throughout COVID-19, I was successful in reducing the rent to Dh140K.
But once the fear of COVID subsided, Christine's proprietor increased the rent once more. The individual elaborates that in order to maintain residence in Springs, the family would be required to expend a significant portion of their earnings.
In 2024, the increase in rental costs in the UAE compels expatriates to consider alternative solutions.
To maintain the same configuration and reside in the same neighborhood, I would be required to pay between Dh260K and Dh290K per year. So, we concluded that that was sufficient.
Then, the French expatriates made the decision to investigate the possibility of purchasing a home. "I explored numerous neighborhoods in Dubai. I was considering Al Furjan due to its proximity to Springs and the fact that it would not require a complete life transformation. However, that did not transpire due to the region's considerable cost."
By September 2022, the real estate market in the emirate had experienced a significant resurgence. Jumeirah Lake Towers (JLT), Dubai Marina, Jumeirah Village Circle (JVC), and Business Bay were among the most sought-after residential areas in Dubai. The most sought-after regions for villas were Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah, and Damac Hills.
We've decided to purchase a home, but as individuals in our fifties, we are ineligible for a 25-year mortgage. In addition, we have no intention of taking out a loan for that length of time. We must consider the cash flow required for my daughter's school and all other household expenses in order to obtain a loan with a shortened term.
Therefore, it became clear that we could not afford to purchase a residence for ourselves. We revised ourapproach and determined that it would be most cost-effective to relocate to a location with an additional monetary reserve for future investments.
Christine has now relocated to Damac Hills 2, a community located near Al Qudra Road that offers a luxurious lifestyle and a diverse selection of reasonably priced properties, as a result of her extensive research.
She explains that she was drawn to this community despite its proximity to the Jebel Ali-Lehbad Road (E77) and Al Ain-Dubai Highway (E66), which could result in extended commutes, on account of its many amenities.
A community center, a picnic area, a pet farm, a dog park, an aviary, a children's play area, and a plant nursery are among these amenities.
She further stated, "My travel time to and from any location within the city typically ranges from twenty-five minutes to over an hour." I allocate around 30 percent of my time to the commute. Additionally, these travel durations may vary according to the distance to the destination. In order to save for future investments, however, we required a substantial reduction in the rent we paid. That is precisely how we arrived at this location. Despite Springs, we continued to yearn for community involvement.
Christine presently remits an annual payment of Dh95,000 for a town house featuring three bedrooms, a maid's room, and a backyard.
The buildings in this area were being moved extremely quickly. The rent was between $70,000 and $75,000, and occasionally as much as $65,000, during my visit in April and May 2022. However, as of June, when I resumed my visits in the summer, the prices began to steadily increase. Town Square, for example, attracted a large number of movers from areas purportedly with reduced rents, which led to an increase in demand. Recognizing that costs would continue to rise in the aftermath of the holidays, we resolved to reserve a room as soon as possible. The eventual rent increase for the identical villa was between Dh110K and Dh115K. It is therefore a strategic retreat in an effort to conserve funds.
In a similar fashion, Mays Aalem has recently relocated to Al Furjan, where she is currently making an annual rent payment of Dh170,000. Mays, who formerly resided in a larger dwelling in Springs, describes the difficulties associated with relocating.
Alalem, a Canadian expat residing in Dubai, stated, "Rents in Springs have risen substantially. Living in a community is in stark contrast to the experience of residing in a home devoid of amenities.