Dubai rental market is moving in the favour of tenants

The performance data of the Dubai real estate clearly indicated that its rental market performed much better than the sales market during 2011. The rents of the villas increased by 11% in the Q4 of 2011 as compared to the increase reported in the previous three months. The clear indication of the year 2011 ended on positive note for the Dubai rental market has led the experts to think better times in the following year. Based on the performance of the market in the previous year, it is expected that though the supply of 38000 rental units will add to the market during 2012, yet the market will peak in terms of sliding rents.

The rents in only few areas showed recovery in 2011, which brought a calm smile on the faces of the landlords and owners of the commercial properties but still Dubai real estate market is a tenant friendly market. Some experts have claimed that Dubai real estate market has still not touched the bottom level and there is a good margin of decline. It is expected that the rents will continue their declining trend in the first six months of the year and in mid-2012, the rents will touch the bottom level in real. Before and even after some months of mid 2012 when the rents will touch bottom level, the market will clearly move in the favour of tenants.

Dubai rental market is heavily favouring tenants right now because the supply inflow in the market has made the market more competitive. This competitiveness has brought many choices for the tenants to enjoy a luxuries lifestyle in lesser prices with more flexible terms and conditions. In order to lure tenants towards their properties, investors are providing incentives like free grace periods, quarterly payment of rents, no fees requirement and provision of quality lifestyle through different amenities and facilities.

Landlords in the rental properties are now offering more facilities and amenities like parking, heath clubs, restaurants, coffee shops, schools, and spas in close proximity of their properties. Properties are now specially designed and dressed up to lure tenants, which are greatly favouring tenants since they are now able to enjoy the extreme luxuries lifestyle in very low prices. Besides residential market, office market is also expected to favour tenants in 2012. The increasing realism in among the landlords will motivate them to providing more leasing incentives.

Though Abu Dhabi rental market is, also tenant friendly but due to greater realism found in Dubai landlords, rental market in Dubai favours tenants more as compared to Abu Dhabi rental market. Astute tenants have entered into the market and are trying to hunt better properties in less price and flexible terms and conditions. The market moving towards tenant friendliness is expected to boost the value of rental properties in near future.