Dubai Property Market: A Guide to Understanding Its Surge and Impact
Utopia doesn't seem farfetched when residing in the UAE, particularly in Dubai. A favoured destination for expats, investors and visitors, the emirate has always had its penetrating appeal, successfully mesmerising everyone and luring them to its proud soil!
Over the years, the emirate's property market has witnessed an unparalleled boom, generating more than AED 151 billion worth of sales in 2021 and breaking a 12-year record! And with this market gaining popularity as the days go by, it's pivotal for tenants to have a clear idea about what to expect next.
If you've just moved to Dubai or you've only recently decided to rent a property, then we've unpacked the basic things you need to know when property prices are on the rise!
Established in 2013, Rera helps regulate the market and keep it balanced. Relying on information such as property type, location, number of rooms and so on, it compares the rental price of your property with the market value to determine whether or not rental prices need to be altered.
If the rental price is below 10% of the market value, rest assured that you won't have to pay AED one more than what the contract lists. However, if that number goes even one percent more than 10, your fees are subject to change.
Going back to the Rera Calculator, if the results foreshadowed a raise in rental price, then you can expect your landlord to amend the contract. But the good news is, this is not an immediate change! Unless otherwise stated in the contract, landlords must provide tenants with a 90-day notice period before any changes to the contract are made. This gives you ample time to figure out your next step at your own pace.
Before reading any further, rest assured. Landlords cannot evict tenants on the whim. They need to present at least 1 out of 4 of the below reasons before putting you on a 12-month notice period.
· If the landlord wants to sell the property
· If the landlord or their family members wish to move in this property and have no other alternative residence
· If the property requires modernization work that cannot be conducted while the tenant is residing
· If the property needs to be demolished
When in doubt you can always reach out to our experts to help you better understand the ins and outs of the Dubai Real Estate Sector! And in the meantime, if you’re considering taking a leap of faith and settling in the sunny emirate, then visit us here or text us, and allow our team to help you begin mapping your unique journey.