Rent Variations in Dubai
Over the years we have witnessed rise and fall of home rents in Dubai, and people often perceive that these are directly proportional to the demand. To a certain extent it is obviously true, but very generic too. As there are few factors that drive demand of the rental homes which eventually result in variation in rents in the community.
The first and foremost factor that resonates directly to the demand and rents is the demographics in the region. If there are more tenants looking for a property than the number of properties available, then it creates a simple equilibrium equation of demand supply which drives the rents to increase of the property.
Generally, the demographics of most of the regions of Dubai tend to increase with time which leads us to second factor which is infrastructure. The infrastructure includes amenities, public transportation access, roads connectivity, healthcare, education facilities and commercial availability which drives the demand of properties. One great aspect about infrastructure is the fact that it retains a long term impact on the demand which leads to better returns to the investors and landlords.
The third factor on which the demand of the rental properties depend is the stability of the economy of the region. In a well proportionately growing economy, where more jobs are created with the passage of time, there is an influx of job seekers in the region who eventually become tenants, thus increasing the demand of the rental properties. Dubai happens to be a city which is a safe haven for businesses because of its business-friendly policies which results in creation of jobs and attracting talents from all over the world.
Another, important factor that has been off-lately impacted more is the flexibility of finances by the financial institutions and developers. The easy mortgage options along with post handover payment plans of 10 years have impacted the demand of rental properties significantly, where more tenants have become home owners by availing these opportunities.
Nevertheless, the regulations imposed by RERA through RERA Rental Index Calculators has ensured these rents to be regulated which benefits both tenants and landlords and results in a thriving market.
For more information about rents and its variations across different communities in Dubai, feel free to get in touch with Homes 4 Life.
