Text size:

  • Small
  • Normal
  • Large
A report released by property management company Asteco says Dubai apartment rents have risen by 28 per cent since the same period last year and villa rentals by 17 per cent.
A report released by property management company Asteco says Dubai apartment rents have risen by 28 per cent since the same period last year and villa rentals by 17 per cent.

Dubai residents rethink lifestyles amid soaring rise in rents

As rent prices in the emirate soar between 30 and 50 per cent, some tenants are moving to cheaper areas, some return to mum and dad, and some report to Rera.

DUBAI // Soaring rents in Dubai are forcing tenants into major lifestyle changes.

Some say they may have to leave the city for cheaper homes, while others say they could be forced to move back to their parents' homes.

Many have called the Real Estate Regulatory Agency (Rera) to stall increases of between 30 and 50 per cent since last year.

"We're thinking of moving out of Dubai," said Belinda, 37, a South African who lives in a three-bedroom villa in Jumeirah Village Circle.

"If the cost of living is going to be so high and your salaries don't increase, why stay here?"

Her landlord tried to double the Dh75,000 rent midway through the contract after the family renewed in January with no change.

They have been asked sign a new contract for Dh150,000 a year or the landlord will not do any maintenance work on the property.

"I think with the rental market in Dubai at the moment they're being very greedy," Belinda said. "Our AC is not working properly and I have to do the maintenance myself."

Hiba, 28, moved out of her family home in Abu Dhabi to her own flat in Downtown Dubai. But after the landlord warned of his plan to raise the rent from Dh75,000 to Dh105,000 on renewal in August, she has begun searching for places in Garhoud or Tecom.

"It's not an ideal scenario to move back with family and commute every single day," said Hiba, who works in advertising.

"I'm trying to avoid that option by keeping on looking for something cheaper because we work really late and it would be tiring to drive all the way back.

"It's insanely crazy with prices much higher from just last year."

A report released by property management company Asteco says apartment rents have risen by 28 per cent since the same period last year and villa rentals by 17 per cent.

Sales prices also shot up by 38 per cent for flats and 24 per cent for villas, the report said.

Agents say the trend began early last year when a growing number of expatriates bought property because of instability at home in Syria, Egypt, Libya and Yemen.

Rents surged again late last year after an economic revival and increased demand. But tenants say their salaries have not risen.

"It doesn't make sense to live in Dubai any more. What will you earn and what will you save?" said KI, who this month agreed to a rent rise of Dh25,000 to Dh110,000 for a flat in The Greens.

"I know if I go out and look, any new place will cost up to Dh150,000, plus I will have to pay for transport and agent's commission.

"It's more of a hassle to move so I may as well pay more and stay put."

Many are aware of their rights or have called Rera to check the rules.

Palm Jumeirah resident Ann did not receive any feedback when she emailed the landlord asking about rental changes three months before her contract was due for renewal.

Three weeks before renewal she was told to pay Dh145,000, up from the Dh120,000 last year.

"I called Rera and asked what are my rights and Rera was quite helpful," said Ann, a marketing professional who has lived in Dubai since 2008. "I was told the landlord was not allowed to do this and there must be a 90-day notice before increase of any rent. So we basically ended up with no rental increase.

"We had thought we would pay an increase to renew and had asked much ahead, but this sort of increase three weeks before renewal, they just can't do that."

rtalwar@thenational.ae

* With additional reporting by Vivian Nereim

Back to the top

More articles


Editor's Picks

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 This comparison image shown on Reddit annotated the objects with vehicles from the movies.

What Star Wars fans say is going on in Abu Dhabi’s desert

We may still not know exactly what The National caught pictures of in the Abu Dhabi desert last week, but the online community has had plenty to say. Here are some of the best bits.

 Courtesy Al Ittihad

Time frame: It’s all going swimmingly

Built on what was originally a public park, Ain Al Faida - the flowing source - became one of the country’s first resort hotels when it opened in the mid 1970s.

 The iconic Kingdom Tower project in Jeddah, Saudi Arabia. Above ground work is set to begin on the tower which is expected to be taller than Dubai’s Burj Khalifa. Rendering courtesy EC Harris/Mace

Saudi’s Kingdom Tower set to go skywards as it aims for world’s tallest building tag

Above ground construction work due to start next week in Jeddah, after months of testing and preparation work.

 Jia Ruhan sang as a guest singer in famous pianist Robert Wells's concert 'rockabilly-medley' in November 2012. Handout

Meet the pop star who is key to China’s superpower ambitions

Before Beijing can achieve its ambitions to be a superpower it will need to become a respected soft power. That's where Jia Ruhan comes in.

 Screen shot from Vin Deisel's facebook page of he and Michelle Rodriguez in Abu Dhabi for the filming of Fast & Furious 7. April 2014

Fast & Furious in Abu Dhabi, a social media frenzy

Fast & Furious 7 wraps up an eventful and much-anticipated week of filming in the capital. Let's take a look at what went on via the key players' social media, while they were enjoying the delights of the desert.

Events

To add your event to The National listings, click here

Get the most from The National