Steep hikes in Dubai rents
The UAE is currently ranked among the fastest growing real estate markets in the world. Rents are on the rise, new developments are underway and investors are more than interested in the luxury projects that Dubai boasts.
By 2015, it is expected that the UAE will have 192 skyscrapers rising over 150 metres in height, a new report has revealed. Dubai's skyline will be home to 149 of these hi-rises while Abu Dhabi will have 32, the Council on Tall Building and Urban Habitat has said. Overall, the Middle East will have 289 towers by 2015.
The emirate's rapid development can also been seen in the latest announcement by property developer Damac, which has launched the book-building process for its initial public offer of shares in London, the first IPO by a Dubai property firm since the emirate's real estate crash four years ago.
Additionally, Emirates 24/7 has found that villas in Emirates Hills and Palm Jumeirah top the list of villa prices, renting out at Dhs1 million.
With soaring rents, some landlords seek to evict tenants to benefit from surging rents. Landlord-tenant legal disputes have jumped by as much as half, fuelled by rent increases of over 40% over the last year in some locations.
However, with rapid progress comes the warning to take caution. A senior official at the International Monetary Fund (IMF) has said that the Dubai government has to make sure its property market is driven by fundamental factors, not speculation, and be ready to act if it sees very rapid increases in asset prices. It acknowledges that the Dubai government has started to take steps in this direction.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. With rents skyrocketing across the emirate (jumping over 20% in the last year alone), Dubai's government has taken steps to regulate the market, including enforcing a new regulation regarding mortgages. We hope our round-up of key stories and expert opinions have helped in understanding the changing nature of the realty sector in Dubai. We'll be following up on the latest developments and will continue to update our readers on the changes that are currently underway.