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Tenants also find it difficult to buy villas in some high-end communities with limited supply
With less than a month to go before the 2020 Dubai Expo, the demand for some high-end buildings in Dubai’s popular neighborhoods has reached its peak. Many of these properties have been completely occupied.
Real estate industry executives told Khaliji Times Due to good rental rates and better facility management, some buildings are either full or almost full.
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In addition, tenants also find it difficult to buy villas in some high-end communities with limited supply.
Asteco Property Management Executive Director Manal Fraiwat said that driven by competitive rents and incentives, high-quality specifications, good maintenance, and proactive property management, several high-end buildings in popular neighborhoods have been completely or almost completely Occupied. “The increase in demand for villa rentals has led to weak demand for apartments. Tenants are also interested in upgrading or expanding their properties,” Flevat said.
Asteco’s report for the second quarter of 2021 shows that rents in most communities have increased, leading to an increase in average rents for apartments and villas by 3% and 8%, respectively. Compared with the same period last year, average apartment rents remained at a 3% contraction, while villa rents increased by 10%.
Prathyusha Gurrapu, head of research and consulting at real estate consulting firm Core, said that, as seen in the past few quarters, the demand for high-quality apartments in certain areas has grown steadily, especially in the Palm Jumeirah, the urban promenade, the few high-end projects in Dubai Marina and Dubai. city center.
“Due to the limited supply in this segment, the inventory of some buildings may be limited. However, most mainstream and affordable apartment markets continue to oversupply, and rents and occupancy rates are under pressure. This trend has further strengthened the growing housing market. Segmentation. Although the situation of rising rents and low vacancy rates is being witnessed and widely discussed, it is limited to a portion of the premium market, not a city-wide phenomenon,” Gurrapu pointed out.
The tenant is still moving the apartment
Although the 2020 World Expo is expected to boost market sentiment, a series of other factors are jointly affecting the recovery of the rental market.
“The UAE has shown resilience in effectively managing the pandemic. The highest vaccine rollout rate and the reduction in the number of cases further position Dubai as a safe and open business destination, while focusing on job creation and financial incentives domestically. It is expected that this rent flexibility, or the higher absorption rate of existing rents in Dubai’s prime properties, will continue in the short term,” Gurrapu added.
Despite the surge in demand for rental housing following the pandemic and the movement restrictions imposed by the new work-from-home culture, Flett said the situation has now eased because most of the available properties have been absorbed.
“Residents who want to upgrade (or downgrade) in terms of size, quality and location still exist. In addition, as the economy and job market continue to recover, more new immigrants will arrive in Dubai and stimulate demand,” Fraiwat added.
waheedabbas@khaleejtimes.com
Wahid Abbas
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