Latest news with #AymanYoussef
Khaleej Times
20-03-2025
- Business
- Khaleej Times
Dubai: Rising rents drive tenants to suburbs, with affordable apartments starting Dh23,000
New suburban areas are becoming popular among Dubai tenants as rising rents push residents to look for more affordable communities. Due to the affordability factor, Lehbab, Al Aweer, and Al Marmoom are fast-emerging new suburban rent areas. 'Dubai's rental affordability is being redefined, and new data shows that 'affordable' apartments are available, specifically in suburban areas away from the city centre,' said Lewis Allsopp, Chairman at Allsopp & Allsopp. He added that affordable rents in Lehbab, Al Aweer, and Al Marmoom now average between Dh23,000 to Dh35,000 annually. Villas and townhouses in these areas range from Dh39,000 to Dh73,000. Over the past few years, communities such as JVC, Silicon, Arjan, and Dubailand have been perceived as suburban areas. But these communities have seen a massive influx of new tenants, pushing rents substantially higher and making them highly sought-after areas. 'A significant 13 per cent year-on-year jump in rental prices across Dubai is encouraging residents to look beyond the city core, leading to increased demand in these communities and a notable shift in Dubai's residential landscape,' said Allsopp. Affordable communities for skilled workers Earlier this month, Dubai announced a project to deliver 17,000 studio to three-bedroom apartments with affordable rents for skilled professionals to meet the rising demand for affordable housing. The first phase will be developed across six sites in Al Mueisim 1, Al Twar 1, Al Qusais Industrial 5 and Al Leyan 1. Ayman Youssef, managing director of Coldwell Banker, UAE, said that once these affordable properties enter the market, a 'more substantial cooling of rental prices' will be expected. 'At the moment, I don't anticipate a significant drop in rents solely due to this new project, as the current demand far exceeds the 17,000 units being introduced. For a noticeable softening in rental prices, 300,000 units currently under construction will be a more decisive factor,' he said. Rents in Dubai have been constantly on the rise over the past four years, prompting tenants to look for new affordable communities. However, some areas are seeing a slow increase as new supply is coming online, easing pressure on the rents. Ayman Youssef said the range for affordable rents varies based on the type of apartment. 'For a studio, it is usually up to Dh30,000, up to Dh50,000 for 1-bedroom units and up to Dh65,000 for 2-bed apartment per annum.' Top affordable communities Youssef said communities that offer affordable rents include Dubai such as Bur Dubai, Karama, Deira to International City, Discovery Gardens and some brackets in Dubai Silicon Oasis and apartments in Damac Hills 2. For affordable apartment rentals, Allsopp suggested that tenants should look to suburban areas like Lehbab, Al Aweer and Al Marmoom. 'These communities, roughly 25-30 minutes from hubs like Jumeirah Village Circle and Town Square, offer more budget-friendly options. If you're seeking villas or townhouses in the Dh40,000 to Dh55,000 range, consider Dubai Industrial, Ras Al Khor, or Nahda. Essentially, affordability means looking beyond the city centre. So, these areas are further out from established villa communities like Jumeirah Golf Estates and Arabian Ranches,' he added. Commuting is a challenge Youssef added that travel time to and from the heart of the city is one of the biggest challenges of the affordable communities, followed by the availability of amenities compared to some of the more upscale areas. Allsopp added that the trade-offs for affordability in Dubai's suburban areas are things such as longer commutes and less developed amenities. 'However, Dubai's rapid growth means these communities are poised for significant development within the next decade. Expect infrastructure improvements and increased connectivity, similar to what we've seen with Al Khail Road and Hessa Street, making these areas predicted future hotspots,' he said. Popular affordable communities Allsopp said that despite not being the absolute cheapest, Jumeirah Village Circle (JVC) is the top rental choice for Dubai's skilled professionals as it was the most transacted community for rentals in January and February, with around 1,300 contracts signed each month, and an average rental price of Dh70,000. 'It's a testament to how quickly Dubai develops, as JVC was once considered a far-out location.' According to Coldwell Banker, Old Dubai, Discovery Garden, Times Square area and Silicon Oasis are the most popular affordable communities among skilled professionals. Youseff revealed that it is 'rather difficult' to get apartments in affordable communities as the occupancy levels in these areas are quite high.
Khaleej Times
10-02-2025
- Business
- Khaleej Times
Dubai: Eviction notices push some tenants to buy their own homes
Nearly 30 per cent of those who took mortgages last year in Dubai decided to become homeowners after receiving rental eviction notices from their landlords, a new report has found. Instead of looking for another apartment or villa to rent, these tenants decided that buying was more viable. In Dubai, homeowners can issue eviction notices to their tenants if they wish to sell their property or decide to move in themselves. 'Our survey reveals that 29 per cent of buyers were prompted to purchase after receiving a rental eviction notice, often due to landlords selling their properties. With rents significantly rising, many tenants opted for home ownership as a more secure and financially viable solution,' the 2024 Mortgage Finder Report said. About 65 per cent of buyers cited long-term plans to stay in the UAE as their primary motivation. 'A key driver of this trend is the unique economic advantage of buying over renting in the UAE. While mortgage rates average around four per cent, rental yields exceed six per cent, creating a compelling financial case for ownership. This dynamic means that monthly mortgage payments are often lower than equivalent rental costs, allowing buyers to build equity rather than pay rising rents. Coupled with stable financing options, this makes buying not just an emotional decision but a long-term strategy for financial security,' the report said. First-time home buyers make up 74 per cent of borrowers, the Mortgage Finder Report said, citing its own research and Dubai Land Department (DLD) records. 'First-time buyers make up a significant portion of mortgage borrowers, with 94 per cent purchasing for personal use. Experienced buyers, accounting for 26 per cent, are primarily investing.' Key insights Majority of the borrowers (41 per cent) earn between Dh30,000 and 60,000 while 26 per cent earn up to Dh30,000. More than half (53 per cent) are in the 31-40 age group. The mortgage market is predominantly driven by residents (95 per cent). The average loan amount is Dh1.7 million, and the typical repayment term being 21 years. 'Over the past three years, mortgage transactions have consistently outpaced the growth of ready sales transactions. In 2023, mortgage transactions grew by 29 per cent, while ready sales transactions increased by 21 per cent,' the report said. 'In 2024, mortgage transaction growth outpaced ready sales transactions by … 3.5 times with a 39 per cent growth in mortgage transactions versus 11 per cent growth in ready sales transactions," the report said. Getting a mortgage According to an expert, home ownership is a "wise choice" as it allows one to build equity rather than just paying rent, which doesn't contribute to ownership. "Over time, the money spent on rent could be used towards a mortgage, eventually leading to full ownership of the property," said Ayman Youssef, managing director, Coldwell Banker. As a new property owner, one needs to make an initial investment, typically around 26 per cent. "This includes a 20 per cent down payment and around six per cent for transaction fees." As reported by Khaleej Times, banks have stopped financing DLD and brokers' fees. Youssef also advised prospective buyers to research the property's true value before purchasing. Community service charges and utility costs are other factors that a buyer must keep in mind. "Generally, apartment maintenance costs tend to be higher than for villa properties." The process of obtaining a mortgage in Dubai is relatively straightforward, though the specific requirements can vary depending on the bank and one's financial profile. "Generally, most banks in Dubai require a minimum monthly salary of Dh15,000 to qualify for a mortgage, though some banks may accept a lower salary ... depending on factors such as your credit score and overall financial stability. "Once you meet the salary criteria and provide the necessary documentation, many banks offer same-day pre-approval for mortgages, allowing you to quickly move forward in the home-buying process. It's important to note that each bank may have different criteria beyond salary, such as the length of employment or the amount of debt you already have. Therefore, it's advisable to compare offers from various banks to find the best fit for your needs."
Khaleej Times
06-02-2025
- Business
- Khaleej Times
Dubai: Eviction notices push some tenants to buy their home
Nearly 30 per cent of those who took mortgages last year in Dubai decided to become homeowners after receiving rental eviction notices from their landlords, a new report has found. Instead of looking for another apartment or villa to rent, these tenants decided that buying was more viable. In Dubai, homeowners can issue eviction notices to their tenants if they wish to sell their property or decide to move in themselves. 'Our survey reveals that 29 per cent of buyers were prompted to purchase after receiving a rental eviction notice, often due to landlords selling their properties. With rents significantly rising, many tenants opted for home ownership as a more secure and financially viable solution,' the 2024 Mortgage Finder Report said. Stay up to date with the latest news. Follow KT on WhatsApp Channels. About 65 per cent of buyers cited long-term plans to stay in the UAE as their primary motivation. 'A key driver of this trend is the unique economic advantage of buying over renting in the UAE. While mortgage rates average around 4 per cent, rental yields exceed 6 per cent, creating a compelling financial case for ownership. This dynamic means that monthly mortgage payments are often lower than equivalent rental costs, allowing buyers to build equity rather than pay rising rents. Coupled with stable financing options, this makes buying not just an emotional decision but a long-term strategy for financial security,' the report said. First-time home buyers make up 74 per cent of borrowers, the Mortgage Finder Report said, citing its own research and Dubai Land Department (DLD) records. 'First-time buyers make up a significant portion of mortgage borrowers, with 94 per cent purchasing for personal use. Experienced buyers, accounting for 26 per cent, are primarily investing.' Key insights Majority of the borrowers (41 per cent) earn between Dh30-60,000 while 26 per cent earn up to Dh30,000. More than half (53 per cent) are in the 31-40 age group. The mortgage market is predominantly driven by residents (95 per cent). The average loan amount is Dh1.7 million, and the typical repayment term being 21 years. 'Over the past three years, mortgage transactions have consistently outpaced the growth of ready sales transactions. In 2023, mortgage transactions grew by 29 per cent, while ready sales transactions increased by 21 per cent,' the report said. 'In 2024, mortgage transaction growth outpaced ready sales transactions by … 3.5 times with a 39 per cent growth in mortgage transactions vs. 11 per cent growth in ready sales transactions," the report said. Getting a mortgage According to an expert, home ownership is a "wise choice" as it allows one to build equity rather than just paying rent, which doesn't contribute to ownership. "Over time, the money spent on rent could be used towards a mortgage, eventually leading to full ownership of the property," said Ayman Youssef, managing director, Coldwell Banker. As a new property owner, one needs to make an initial investment, typically around 26 per cent. "This includes a 20 per cent down payment and around 6 per cent for transaction fees." As reported by Khaleej Times, banks have stopped financing DLD and brokers' fees. Youssef also advised prospective buyers to research the property's true value before purchasing. Community service charges and utility costs are other factors that a buyer must keep in mind. "Generally, apartment maintenance costs tend to be higher than for villa properties." The process of obtaining a mortgage in Dubai is relatively straightforward, though the specific requirements can vary depending on the bank and one's financial profile. "Generally, most banks in Dubai require a minimum monthly salary of Dh15,000 to qualify for a mortgage, though some banks may accept a lower salary ... depending on factors such as your credit score and overall financial stability. "Once you meet the salary criteria and provide the necessary documentation, many banks offer same-day pre-approval for mortgages, allowing you to quickly move forward in the home-buying process. It's important to note that each bank may have different criteria beyond salary, such as the length of employment or the amount of debt you already have. Therefore, it's advisable to compare offers from various banks to find the best fit for your needs."
