Apartments For Rent in Dubai

Things to know before you opt for an apartment for rent in Dubai

Dubai Real Estate:

Dubai Real Estate is an epic example of fast-paced urbanization. It was not long ago that Dubai was desert with scarce resources. However, it attracted trading caravans from across the region due to its trade routes and central location. It was Middle East’s face for traders from Gulf and European states. Dubai did not change overnight. For years and years its worth remained hidden from the modern world. It was only in twentieth century that rich foreign investors started pouring in with hopes of strengthening trade ties with the rich local Arabs. On top of it, Dubai’s visionary leaders played a vital role in improving the local infrastructure, banking sector, real estate and transit system. Together, these two factors raised Dubai as the state of skyscrapers that it is now. Today, Dubai’s real estate and infrastructural projects are a favorite of Gulf investors who seek sustainable and growing returns on investments with moderate risk factor.

Local lifestyle in Dubai:

Over the years, the population graph of Dubai has shifted towards foreign inhabitants. Much of Dubai’s local population has remained away from the hustle and bustle of the city life. If you stroll down the streets of Dubai, you will see that the local working class continues to reside away from the limelight. The economic boost in Dubai brought a rapid increase in real estate prices, making it hard for the middle class to make purchases in the property market. The property tax is also a major concern for a middle class buyer. This made renting a popular choice amongst the locals and the lower working class. On the other hand, the elite class prefer renting an apartment instead of owning it because of the nature of their work; many international firms are headquartered in Dubai and have expat management. These expat go for temporary living options instead of owning a piece of land.

Apart from apartments, villas are preferred by medium to large families, whether local or foreigners. Just like apartments, villas for rent are also preferred over villas for sale because of financial viability.

Apartment lifestyle:

In old days, owning a house was the sole criteria for gauging a man’s economic worth. But with the change in economic and social trends, this perception has changed as well. Residents and tenants in Dubai now prefer apartment as a more tradable, flexible and financially viable living option. According to research, apartments for rent have the highest trade numbers. This applies to high-end apartments as well as standard apartments. Apartments offer a closely knit community-like lifestyle where all tenants enjoy equal access to amenities and facilities. Apartments also offer better safety and security features due to one or two entrance and exit. From developer’s view, apartment buildings are preferred because of the promising return on investment in Dubai.

 The most intriguing thing about Dubai is that it has something to match everyone’s taste. Dubai hosts a diverse population with varying lifestyles, financial status, social background and living preference. A major portion of Dubai, the one which is highlighted the most in international media, caters to the elite class. This part of Dubai includes lavish apartments and villas for rent which have a mix of Mediterranean, Arabian and Western architecture. Surrounded by lush green parks, palm trees, yoga spots, jogging tracks and play areas common to an elite community, these residential units are often developed on top of commercial buildings. In Dubai, many developers prefer projects which have a mix of residential and commercial units so they can get maximum value out of the land.

Apartment furnishing options:

Apart from architecture, landlords also offers furnishing options. One can find a furnished apartment with all the basic furniture and electronics in some of the standard residential areas and majority of the elite residential areas. The difference is because of the expected return on investment. The elite class, which includes foreign business men, prefer a high-end furnished apartment as it saves time, offers ease of shifting and is convenient. As for the standard furnished apartments, it is also preferred by the tenant because of the convenience factor but owners seldom make such offers because of the narrow profit margin on furnishing. But on the other side of the spectrum, some clients like to have things their way. Whether from the elite or working background, such clients go for unfurnished apartments for rent because it gives them a sense of ownership and satisfaction. Because of the presence of such clients, international furniture giant IKEA has gained a stable position in Dubai’s market.

Lastly, as common sense would suggest, unfurnished apartments always come with a lower price tag. This trend remains same for villas for rent and townhouses for rent.

Regulatory environment in Property market:

Rapid economic growth always attracts opportunists to bag maximum gains while the going is good. The same was true for Dubai. When Dubai was undergoing a major infrastructural transformation and was rebranding itself on the world map, many opportunist landlords took undue advantage of the high demand for residential and commercial real estate. Quoting high prices and applying ridiculous annual rent increases, these landlords gave a tough time to foreign investors. It wasn’t long till this issue caught the eye of the relevant government officials. As a result, a comprehensive set of rules and regulations were put forth the government to regulate the real estate market. For instance, whether it was an apartment for rent, villa for rent or a shop for rent, the landlord could no longer impose an annual increase on his own. The Real Estate Regulatory Authority (RERA) was set up to look after all aspects of landlord and tenant relationship to make sure that no party takes undue advantage of its position and that there is no information asymmetry. Till today, RERA has successfully resolved many tenancy disputes in the best interest of both parties. In Dubai, it is mandatory to register with RERA before entering a tenancy agreement. To protect the local and foreign investors from fraudulent deals, RERA has also prepared a list of registered real estate agents in Dubai.