For banker Shagun Deepchandani, her new home is the perfect place to live ? she enjoys panoramic views of Shaikh Zayed Road, it is under five minutes drive away from work and is close to all the hotspots in Dubai. She moved from a studio in Bur Dubai to a spacious one-bedroom right on Shaikh Zayed, taking advantage of the falling rents. The impetus for Shagun?s relocation was to upgrade for convenience, despite the fact that her rent was higher than she had been paying for her previous home.
The number of people moving to better areas seeking improved amenities, facilities, views, shorter commutes and more space is constantly on the up, even though it means paying more rent.
A look at the rental figures of various developments in Dubai shows a clear decline over the past year or so, making it far more affordable to tenants.
For instance, at Shoreline Apartments on the Palm, two-bedroom units which were available for Dh120,000 per year in 2010 are renting for Dh110,000, while a three-bedroom that used to cost Dh160,000 a year in 2010 are now going for Dh150,000.
The villa segment also witnessed a considerable drop in rents. A two-bedroomed villa in Emirates Living is now available from Dh85,000 while during the rental peak it used to cost about Dh100,000 per year.
Since three-bedroom units are available from Dh95,000 upwards, someone who wants to upgrade from a two-bedroomed to a three-bedroomed villa can do so at affordable prices and sometimes the difference to be paid is meagre or non-existent.
Change in focus
When the market was at its peak, the most important motive to move was affordability. But things have changed considerably and, with rents coming down drastically, affordability is no longer a concern for many tenants.
What people tend to focus on now are aspects such as space, convenience, views, amenities and facilities, less traffic congestion and freebies such as free chiller, free maintenance and so on. For instance, Shagun?s primary target was to get out of the Bur Dubai area and move closer to work. She explains, ?I lived in a studio in Bur Dubai for a year and I was paying Dh46,000 per annum. However, by the time my tenancy expired, it was a whole new market with plenty to choose for the tenants.?
At that time she decided to take a look at units in Business Bay, Tecom and Al Barsha, which are closer to her office in Downtown Dubai and also to new Dubai.
?After taking a look at a number of properties, I came across this really attractive apartment in MBK Tower on Shaikh Zayed Road and it was too good to resist,? she says. After negotiation, she got it for Dh48,000 per year.
?The unit itself is more spacious than a studio and it is a new building as well. Moreover, the fact that we are living on Shaikh Zayed Road is extremely appealing,? she adds.
Earlier, Shagun?s commute to work used to take more than20 minutes, whereas now it is under five minutes, which she is really happy about.
Compared with the building she was staying in prior to moving, Shagun feels her new apartment is much better value for money. Her current rent is only Dh2,000 more per year than she used to pay for the studio and also covers a number of amenities and facilities such as swimming pool, nine-storey parking-space area and gym.
?Moreover, the chiller and maintenance are absolutely free,? says Shagun.
Seeking space
Mark and Sophie Peterson (names changed at their request) decided to upgrade so that they could have more space. The couple moved from a two-bedroom apartment in Shoreline Apartments in Palm Jumeirah to a three-bedroom unit in the same development.
?Yes, the rents are far more affordable now, so we decided to go for a bigger unit as we are planning a family,? says Mark.
Also, having spent quite some time in Dubai, the couple have accumulated a lot of personal belongings that the two-bedroom apartment they were living in couldn?t fully accommodate.
?Last year, we couldn?t afford the rent of a three-bedroom apartment here, so we were waiting for a while for the right property at the right rent. Once we found what we were looking for, we immediately decided to make the move,? says Sophie.
The Petersons, who were lucky enough to bag a good bargain, are now paying Dh10,000 extra per annum for their three-bedroom apartment which, they believe, is nothing compared with what they have got in return.
?The difference was not that much ? especially when you calculate it annually ? so it made sense to us and it seemed logical to move to a bigger unit.
?We now have an extra bedroom and all of the additional living space which you get in a three-bedroom apartment, so we are very happy,? says Mark.
Increasing numbers
These are not isolated cases. The trend is catching up really fast as real-estate experts agree (see box). With several properties available at affordable rents, the number of tenants looking for better homes is bound to grow.
If you are feeling inspired to upgrade, why not take a look at Property?s Leasing Guide (pages48-53) for updates on rents in Dubai and Sharjah.
Agent speak
Laura Humphrey, leasing manager at Ocean View Real Estate
I think the trend of people upgrading to bigger units is limited to the more popular areas which people couldn?t afford back in the day when the prices were high. So they now have the opportunity to get a bigger and better place for either the same money or only slightly more. We can see this happening across Dubai.
Due to the fall in rents, a lot of families are able to move closer to schools because it is more affordable for them. They are often looking for a place that is within walking distance to a park or convenience centre.
Every tenant is looking for the best property at the best price on the market, but if they are now achieving more space with a property then they would compromise and pay slightly more towards the rent because they will be getting much more value for money now the market has stabilised, which is positive.
Michael Edwards, manager of residential sales and leasing at Better Homes
This trend can be seen all over Dubai and can be associated with better quality buildings that have come into the market.
Rents are lower than they were a few years ago; tenants will be attracted to the higher quality building and facilities that were previously out of reach. Tenants are no different when it comes to getting the best value for their hard-earned money.
All these factors such as schools, amenities and facilities are important and contribute to determining the rental figure. However, the quality of the building is the major factor. When people move to a bigger unit, they will be ready to pay more, depending on the increased quality of the new building compared with their current one. With rents being lower than several years ago, tenants now have the ability to get a better product.
Source: http://letthetruthout.com/2011/09/dubai-tenants-spending-more-to-get-more/
bike earthquake in new york nigella lawson florence and the machine earthquake map brooke shields earth quake
No comments:
Post a Comment