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falling RENT...who wants to move to a new home in DUBAI?

10-02-2019

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Falling rents in the UAE are a good reason to move into a brand-new apartment or villa in a desirable location. However, independent studies and reactions from real estate companies, property builders and families say another story.

While some residents are flexing their dealing forces to arrange a rent decrease in their current apartment, some are waiting for 'rents to fall further'. Some Sharjah residents are making a beeline to Dubai, to take advantage of the falling rents in certain localities. 'Anything to escape the Sharjah-Dubai traffic,' said one occupant.

However, a vast majority of residents prefer not to move at all, fearing very high moving costs. Including Dubai Real Estate Regulatory Agency (RERA) charges, advance rent, municipality charges, movers' costs, and several other hidden costs.

Residents said they need to keep aside a minimum of Dh30,000 or more, depending on the apartment rent and not accounting for hidden charges, to move into a new place. Khaleej Times takes a closer look into real estate trends, moving costs and recent consumer habits in the UAE over the subject of moving into the 'dream home'.

Leases in Sharjah can be climbed just once in three years, and the accessibility of supply and aggressive leases in Dubai prompted an across the board decrease in loft leases in Sharjah in the final quarter of 2017, as indicated by Dubizzle Property. 

Butaina territory encountered the greatest drop in rents (17 percent), trailed by Al Nabba (10 percent), Al Nahda, Al Qasimia and Al Ghuwair (nine percent). Three-room condos for lease in Butaina encountered the biggest lessening in rents by - 44 percent. 

"They could be leased for Dh27,000 in the final quarter contrasted with Dh48,000 in a similar period in 2016. This might be a direct result of more established structures in the region," said Samer Abdin, general director, Dubizzle Property. 

In any case, does that mean individuals are moving to Dubai? Mohan Kumar, a Sharjah-based insurance agency worker, has been living in a high rise in Al Qasimia for more than 10 years. When he originally moved into the three-room level in 2008, the lease was Dh40,000. Today, he pays Dh33,000 for a similar, and the landowner has tossed a free stopping office in with the general mish-mash. 

"I moved here when my children were a lot more youthful with the goal that we could be nearer to their schools. Presently, they have graduated and are in college. Notwithstanding, when I think about the extra cost I have to spend to move into another spot, I choose not to do," included Kumar. In any case, he said that the worry of being stuck in rush hour gridlock each morning settles on him reevaluate his choice now and again pamir-property "For my children, this area is home," he included. 

"With the UAE land winding up progressively moderate, property-searchers and inhabitants have all the more haggling capacity to guarantee they are getting a precise market cost for their properties," included Abdin. In a survey of more than 1,400 individuals on the dubizzle stage in November 2018, more than 900 clients said they were presently leasing property in the UAE. 

Among those leasing properties, 18 percent said they arranged a decline of more than 15 percent on their yearly lease in the most recent year, with seven percent arranging a 10-15 percent diminishing, 18 percent arranging a 5-10 percent abatement, and 19 percent arranging a lessening of under five percent. Around 19 percent of respondents refered to lessening the quantity of rental checks as an instrument for arrangement, while 14 percent said support and chiller charges were advanced for exchange.

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