Winter has hit the UAE with a storm. As the cold seeps in we are all pulling coats on over our heads and pulling tight those draw strings, and it seems we might have to do the same with our purse strings soon.
Yesterday in Abu Dhabi it was announced that there would no longer be a cap on rental hikes in the capital stating that rental rates need to be moderated by market influences. This does seem like a logical path to follow for accelerated growth and increased investment in the capital, but it can only be seen as a thorn in the foot of the renter.
The increase in the price of properties has been widely reported on in the past year as the industry rockets towards pre-bubble high prices. Dubai has also been listed as one of the top 20 real estate cities in the World showing an 11% increase in 2013 so far according IP Global Middle East. That makes buying property in Dubai a very safe real estate investment. This is also obvious in the increasing trend in buying as opposed to renting in the UAE.
The UAE Central Bank has recently introduced a 4% property registration fee, up from 2%, showing that the property market is much more regulated this time round. Furthermore, there is also a 60% mortgage cap when buying a second home in Dubai.
Following a climb in the property market in the UAE, an increase in rent is sure to follow, as landlords will want to take full advantage of the possible rent this increase can afford them.
In Dubai DEWA has announced they will be increasing the slab rates for water and electricity across the board as from January. This after slapping certain communities with hefty housing fee increases in October.
These increases everywhere seem quite daunting, but don’t despair. There is no need to pick up a second job or sell your jet ski to cover the extra costs. Why don’t you just rent out a room in your apartment or villa?
There is a new feature on JustRentals.com where you can advertise one of your spare rooms free of charge. By adding you room and finding a roommate you can generate the extra funds you need to cover all the additional costs without having to pick up an extra job, or logging overtime hours at the office.
Whichever way you look at the UAE property market it looks like a great time to be a property owner, but it is a slightly different picture if you are a renter. You might want to look into a smaller apartment, or even finding a roommate to take up that spare bedroom that you have been wanting to turn into an office or art room.