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Real Estate News Releases
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(EMAILWIRE.COM, November 21, 2008 ) UAE - The frenzy of property buying and selling in Dubai has been replaced by a thriving rental sector as the credit crunch continues to play havoc with global property marketsÂ…
For the last few years, properties in Dubai were being bought and sold faster than you could say UAE.
Now, with concerns over the credit crunch and Dubai property prices falling (as reported in TheMoveChannel.comÂ’s news story on November 14th) renting is becoming the favoured option.
With prices in the Downtown Burj Dubai area falling by as much as half, according to Dubai based estate agents, renting is now seen as a safe bet in an unsafe climate and the number of properties being put up for rent rather than sale has increased dramatically.
Despite rents going through the roof - in July of this year, it was reported that residential rents in Dubai has risen by 22 per cent year-on-year – it is still the preferred option at the moment as vendor and buyer confidence hits a low ebb.
If you have deep pockets, residential buildings along Shaikh Zayed Road command the highest rents, doubling since last year.
The Bur Dubai and Ghusais areas also saw massive increases in rental costs.
From the seller’s point of view, Riad Kamal, Chief Executive of construction giant Arabtec Holding said, “More developers will become more reliant on income from property rents as the housing sales market continued to slow.
“There is a huge demand for rented accommodation and that's what is escalating the rent prices.
“What we are going to see is a healthy correction as more accommodation becomes available, helping to reduce the rents which today are just very unreasonable,” added Mr Kamal.
ItÂ’s not just Dubai property that is seeing soaring rents as more and more people look to the rental sector. In May of this year, a rent ceiling, three-year fixed-rate contracts and subsidised utilities for low-income families were among reforms proposed to curb rising accommodation costs in Abu Dubai.
It was also suggested that three-year tenancy contracts should also be mandatory, which would make it illegal for landlords to increase rents before agreements expire, and a rental ceiling for new residential units due for let should also be set.
Other proposals included subsidising utilities including water, electricity and telephone lines for low and middle-income workers who currently spend more than 50 per cent of their salary on accommodation.
For more information on UAE property and the market in general, please visit http://uae.themovechannel.com/
-ENDS-
Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information as well as images and interview possibilities, please contact:
Dan Johnson
Managing Director
www.themovechannel.com
0207 952 7650
TheMoveChannel.com
Jon Moore
020 7952 7658
j.moore@themovechannel.com 
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