A major dip in rents across the UAE has prompted more than a third of tenants to switch homes last year, with several opting for homes with larger rents, said a survey report.
The findings of the survey, conducted by YouGov Siraj Omnibus in June, also revealed that with rents dipping, Dubai has again turned out to be the preferred destination for those planning to shift residences from Abu Dhabi and Sharjah.
The online survey included 770 adults over the age of 18.
The survey reveals that 35 percent of UAE residents are of the opinion that the real estate outlook will improve in 2011, in comparison to 32 percent who feel it would deteriorate, while 21 percent feel that it will remain the same.
Compared to tenants' optimism, the property owners' have exhibited more confidence about outlook on 2011 real estate at 47 percent.
Although there is optimism, it is a cautious optimism, and the UAE residents are grabbing the current opportunity of low rentals when upgrading their accommodation, the survey report said.
The survey reveals that about 40percent have moved from single bedroom units to double bedrooms, and 46 percent of those wh lived in double bedrooms last year, now live in three bedrooms.
According to YouGov Siraj Research Director, Himanshu Narang, Dubai is better-placed when it comes to availability of residential and commercial units, followed by Abu Dhabi and Sharjah. Sharjah is seen to have better value for money, surpassing Dubai and Abu Dhabi, respectively.
But, the findings indicate that migration is geared towards Dubai, particularly from Sharjah and Abu Dhabi. Among the current population in Dubai, 18percent have recently moved in from Sharjah, while other 35percent residents in Sharjah have agreed that they plan to move to Dubai.
In Abu Dhabi, despite the 15 percent drop in rents, 16percent of residents plan to move in to Dubai.
The latest report by Deutsche Bank also states that Dubai property prices continued to fall moderately in June, hurt by oversupply and low demand.
Rentals in Abu Dhabi have dropped by 15 percent during last quarter, said the report by Asteco Property Management. The Abu Dhabi market is seeing more supply entering the market. But, the fall in rents are not huge enough to bring back the flow of tenants from capital to Dubai, where the property is much cheaper.