Factors That Affect Rent Price Increase
Understanding Rent Increase
Today’s topic is all about predictions and we are going to explain, how you can predict rental price increases within a community.
Generally, Dubai rents are associated with a variety of factors out of which the infrastructure plays one of the most important roles that affects the demand. Post pandemic recovery, there has been a significant influx of tenants coming to Dubai and looking for more established communities which is affecting the demand.
The upward trend is also complimented due to the increasing fuel prices for which the residents of other Emirates working in Dubai have moved to Dubai to save on their time and fuel cost drastically.
Dubai Land Department has set up a rental increase calculator which specifies how much of rent can be increased from an existing tenancy contract within a community. However, the factors that contribute towards the rental index calculators are more important to consider, so any individual can predict a ballpark figure or its increase or decrease.
Public transportation, Schools, Hospitals, Clinics, parks, play areas, commercial spaces, business areas and leisure attractions are amongst the top parameters that affect the demand of a community. Any new attraction within a community directly affects its rental prices like we have recently observed in Al Furjan and Discovery Gardens, how metro has significantly improved the commute of the residents resulting in an increase of 15% rents overall across both communities.
Hence, for investors, we suggest to keep on a look out for the communities that are evolving so that new additions will add further value to the rents, and for the tenants, we can always suggest that if you are choosing on a community, make sure that you select a place where the amenities resonates with your requirements, as the existing and upcoming amenities would naturally add up hike in the rents.
To know more about the communities where the rents are varying or to learn more about in demand locations for rent in Dubai, please feel free to get in touch with our advisors at Homes 4 Life.