Thursday, August 18, 2011

Low rentals attract Sharjah, Ajman residents to Dubai

Residents from Ajman and Sharjah are moving to Dubai, as rents in the emirate gets highly attractive, according to analysts.

With rentals continuing to decline in Dubai, the Sharjah and Ajman residents are now planning to take advantage of the Dubai prices, which has hit the bottom.

However, according to Matthew Green, Head of Research and Consultancy, CBRE, it is not just the cheap rentals that are the main attraction in Dubai, there is quality accommodation too, on the offer, he explained.
For instance, the northern emirates lack up-market properties. The quality of units in Dubai is far superior to that of its northern emirate counterparts, he said.

However, he said that the economic uncertainty in the global market has been compelling tenants to opt to rent, rather than purchase, which is now impacting the freehold market in UAE.

According to Michael Michael, Director of Landmark Advisory, with fresh supplies hitting the market, occupants are moving towards established communities with good amenities.

The incentives on the offer range from offering rent-free periods of nearly two months, apart from lower rentals and parking fee, and better payment terms, Green pointed out.

However, despite the lower prices and huge supply volumes, there will be more residential units and commercial space, such as the projects in Sports City and Business Bay that are yet to develop.

Meanwhile, in the UAE capital, several residential projects are almost ready, and when they become available, there will be some migration happening from Dubai to Abu Dhabi.

The latest report by Landmark revealed that apartment rentals have fallen three percent in Abu Dhabi, while increased supply is the cause of rent decline in Dubai. Villas in Dubai have actually seen a growth of 2.8percent every quarter, owing to lack of supply.

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