We are barely half way through January, and it is already clear that 2014 is going to be a testing year for renters and home buyers. Property pages have been filled with news stories about spiraling rent and purchase prices in 2013, with increases set to continue, thanks in part to Dubai’s successful Expo 2020 bid.
HH Sheikh Mohammed was recently reported to have pledged to prevent exploitation of the successful bid, saying measures would be taken to prevent people using the Expo as an excuse to raise prices and rents.
Darko Dumancic, a residential sales and leasing consultant for Better Homes, said rents in Dubai were increasing, but that landlords should beware of trying to impose excessive increases.
“As in the previous period of almost two years, rents are steadily going up. This especially applies to the established communities like Dubai Marina, Palm Jumeirah, Emirates Living and the more renowned and best known projects in them, where landlords are once again dictating the terms.
Some people were expecting that the Expo 2020 win would increase the price at least 20 per cent overnight, but in most of the cases, they were proven wrong as overpriced properties will remain overpriced and vacant.
Even the upcoming communities such as Jumeirah Village Circle, Sports City, and others, are witnessing a steady increase in demand and subsequently in price. With the latest cap decrease from RERA, one thing is sure that all tenants have to be prepared that for the foreseeable future rents will go one way – up.”