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Gulf News
29-04-2025
- Business
- Gulf News
Dubai rent hikes: More tenants face second year of double-digit increases
Dubai: Rents easing in Dubai? Not for a significant number of residents, who now have to decide whether to renew leases after their landlords decided to raise rents in double-digit ranges. And here's the painful part for these tenants – this year's hike comes after they had already seen a double-digit increase at last year's renewal. The trend shows that a sizable number of landlords in Dubai are rushing to 'level up' their rents after the introduction of the real-time Rental Index by the Dubai Land Department in January. 'There is no rental correction going on in Dubai right now,' said a leasing agent. 'Landlords who are allowed to hike rents as per the data from the Rental Index are doing just that. 'There is no reason why they should hold back from doing so. It's up to the tenants to decide whether they should stay on or quit.' This does leave affected tenants with quick decisions to be made. Stay on and they have to comply with the second (or third) successive rate increase. Decide to vacate and search elsewhere opens up the possibility they might still have to pay the elevated rents that are prevailing across Dubai. At the same time, there have been indications of some 'softening' happening at some residential properties, which are essentially older buildings and whose landlords cannot raise rents under the star rating system of the updated Rental Index. Rupert Simmonds is the Director of Leasing at Betterhomes, and he reckons that there is a backdrop to tenants facing successive rent increases. 'It's likely that this is for tenants who have been in the same property, say, for the last 3-4 years,' said Simmonds. 'They would have been paying ongoing Covid-time rents – and because of the (previous) Rental Index, they probably were protected from today's rents. 'It's likely that now each opportunity a landlord gets to increase the rent, they are able to do so. Because the rental market has gone up a lot more over the last year.' That's just it. Landlords don't want to be caught out when Dubai rents actually start to stabilize at some point. Then, that rents' stabilizing will not be confined to a few areas or buildings, but will take place over a wider spread. But that's not the case now. Even with more residential buildings completed and ready for residents to move in. Whether they are the homeowners or tenants. 'About 40% of the units at out first freehold project in Liwan are expected to be placed in the rental market,' said Murtaza Moiz, Vice Chairman of Symbolic Developments and Speedex Group. ' The other 60% were acquired by end-users, and for us that means a balanced profile for the project and the Liwan area. 'Rental rates in Liwan range from Dh65,000-Dh70,000 for a one-bedroom and Dh100,000-Dh120,000 3-bedroom units. These figures represent strong rental yields, with Liwan poised for further growth supported by ongoing infrastructure enhancements.' Developers with projects completed or nearing completion in other happening areas of Dubai have the same message – sure, they have their end-user buyers, but a sizable portion of the units will still be rented out.
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.
The National
15-03-2025
- The National
Vida Dubai Mall review: A stylish and affordable stay in the city's beating heart
Having done the Burj Khalifa's At The Top viewing experience and visited the landmark's various restaurants and bars over the years, I'm of the (perhaps unpopular) opinion that the world's tallest building is best experienced from the outside. Don't get me wrong, I've had a perfectly lovely time on each time I've been inside Burj Khalifa. But it's a neck-straining sight to be marvelled at, especially with its lights-and-music spectacle come nightfall. It's a view I'm reminded of as my guest and I draw back the curtains in our Vida Dubai Mall hotel room. It's dusk and the tower twinkles alongside many of its neighbouring buildings, including my hotel's namesake landmark. Being located so close to some of the emirate's most visited tourist destinations is one of this hotel's big appeals. The National checks to find out what else is on offer at Vida's newest hotel. The entrance to the four-star hotel is almost directly opposite the Dubai Mall's China Town wing – a section I have yet to explore since its opening in 2023. . Upon arrival, our car is swiftly moved to parking by the valet after a warm welcome and our bags are brought to the lobby. The hotel's signature scent is noticeable as soon as we walk in and I soon spot it for sale in candle or diffuser form by the reception, seriously considering a purchase. In true Vida style, the lobby's modern interiors scream quiet luxury, with desert tones, olive trees in supersized white stone pots and low-seated furniture. As we hand over IDs at check in, we're granted a upgrade (albeit a humble one), meaning we'll enjoy a sought-after skyline view during our stay. This is a hotel booked for its location, hence its unsubtle name. As such, the room isn't designed for lazing about all day. Instead, it's a stylishly compact space which is more than sufficient, with a sizeable wall-mounted TV, desk space and a hidden wardrobe and changing space between the bedroom area and bathroom. In keeping with the practical overindulgence theme, there's a shower instead of a tub in the bathroom. The Grown Alchemist toiletries and the super soft bathrobes are nice touches. The view is stunning and the cool tones and modern design makes for a soothing, fresh feel. Our first meal is lunch in the sixth-floor restaurant Flo, where we indulge as we wait for the sun to make a reappearance from behind a nearby skyscraper. Its menu has salads, sandwiches and burgers, ideal for filling up without too much fanfare. I try the fruity summer breeze salad (Dh65) alongside a falafel wrap (Dh62) – the bread has been toasted for extra bite – and crispy fries. It's a generous portion and exceeds my expectations: simple food done right. The restaurant is a relaxed space to eat, enjoy coffee or even just pull up a book or laptop for an hour or two. At dinner, we head to Origins restaurant, the hotel brand's signature eatery, and sit outside facing the street to absorb the downtown buzz. Accompanied by a fresh bread basket, I have the hearty pumpkin coconut curry (Dh78), served with rice, while my guest tries the spicy linguine (Dh85). We take our time savouring the filling meal watching the world go by. We head to Origins again for breakfast, this time sitting inside in a cosy nook surrounded by ornamental vases and coffee table books. Still full from the day before, I manage only little bites from the buffet, which includes plenty of cereal, pastry, Arabic favourites and cold cuts options – although I am impressed by the made-to-order breakfast menu, which includes several vegan options such as the chia pudding (Dh55) and stir-fried tofu tartine (Dh65). During our stay, I enjoy the laid-back vibes and the chic modern interiors, making this an ideal spot for relaxing with a book by the pool, getting some work done in the lobby or catching up with friends within the restaurants. Although it is a far cry from a party hotel, we're aware things are lower-key than they might usually be since we are visiting during Ramadan. There's also a 24-hour gym, an expansive terrace area, which hosted iftar meals during our visit and can also be used for weddings, and a children's club. This hotel is a good option for those visiting Dubai Mall and its attractions. Admittedly, there are a handful of hotels in the area, but not many that are both elegant and affordable, let alone actually connected to the mall. Despite staying during the tail-end of winter, when residents try to maximise time enjoyed outside before the sweltering heat kicks in, we still spend all our time away from the hotel in the mall. We explore China Town, which has lots of foodie spots, surprisingly affordable spas, cool beauty shops and more. We also take a peak at the new House of Hype; watch people show off their skills at the ice rink; shark-spot at the aquarium; and fill up our buckets at the sweet shop before heading back to sit outside the hotel for our evening dinner. Beyond the mall, there are also many restaurants that surround the area. For a change of scene, the art laden streets of City Walk are just five minutes' drive away. A walk along the Dubai Creek towards the more historic area of Dubai is another option. The Dubai Opera and Coca Cola Arena are both nearby. I have visited several Vidas in the UAE, both for a staycation and a quiet work spot, and have come to expect laid-back, invigorating charm. The same applies to the service. But one of the highs of this visit was the friendly and helpful staff member Kripesh, who we enjoyed chatting to throughout our stay. Late on a Sunday night during Ramadan after iftar, there's a lack of atmosphere during dinner inside the restaurant. We'll have to return post-Eid to get a real feel. If you want to chill poolside, make sure to check the best time to catch the sun. On the sixth floor and surrounded by other sky-high buildings, there are stretches throughout the day, especially during the cooler season, when it's more of a shaded, windy corner of the hotel. During our lunchtime visit, we're told to come back at 2.20pm, so take a leisurely lunch to return a glorious afternoon in the heat. In the heart of the city, without burning a hole in one's pocket, this is the ideal spot for those who plan to be out and about while visiting Dubai and return to a serene spot. It would especially suit business and solo travellers, or couples who want to explore. Rooms at Vida Dubai Mall start at Dh600, depending on the season. Check-in is from 3pm and checkout time is at noon. This review was conducted at the invitation of the resort and reflects standards during this time. Services may change in the future
Khaleej Times
27-02-2025
- Business
- Khaleej Times
Abu Dhabi ‘trying to reduce blue-collar population' as it focuses on knowledge-based economy
Abu Dhabi is focusing on knowledge-based sectors that employ white-collar professionals, and trying to reduce the blue-collar workforce, a senior official said on Wednesday. 'We're trying to reduce the blue-collar population, [although] we're thankful for them ... We're looking for companies that have technologies that Abu Dhabi can really make use of; for example, the vertical-farming technologies." "For example, a lot of vertical-farming technology companies have been given incentives that are making the emirate a springboard for regional expansion. This gives Abu Dhabi more traction to attract other investors within that sector,' said Mohamed Al Shorafa, chairman of the Abu Dhabi Department of Municipalities and Transport. Abu Dhabi's population has grown exponentially in the past four years, making the emirate the most populated city in the UAE. The city aims to double its population by 2040. The Statistics Centre Abu Dhabi (SCAD) reported in June 2024 that the population of the capital reached 3.789 million, an increase of 83 per cent compared to 2011. The employed workforce is divided into 46 per cent white-collar workers, a category that has seen a 109 per cent surge since 2011, and 54 per cent blue-collar workers, a group that has experienced 65 per cent growth compared to 2011. 'Based on the Falcon Economy Strategy, we are anticipating to double the population by 2040.' The UAE federal government is also pushing towards attracting and establishing knowledge and innovation-based firms which will require more white-collar professionals to drive the economy to the next stage of growth. 20% autonomous taxis by 2030 He noted that Abu Dhabi is investing a lot into AI, and attracting companies that are investing in artificial intelligence in different sectors. 'Most of our decision-making is driven through data and AI. We have a lot of sensors, and intelligent traffic systems that can give us data that helps anticipate where the congestion might happen,' he said during the Investopia 2025 conference in Abu Dhabi on Wednesday. Abu Dhabi was the first in the region to launch autonomous taxi in 2021. 'By 2030, we are targeting 20 per cent of our public taxis to be autonomous. We're working a lot with international companies that have already invested in our autonomous sandboxes and our pilot projects. We've invested in the electrification of our bus network as well, and more will come. We're in discussion with private players to come and develop their own mobility systems and platforms so that all systems can talk to each other and make it easier for people.' Al Shorafa also noted that the most important investment that the government is making is in the development of transportation infrastructure. 'We've earmarked over Dh65 billion for transportation projects including tunnels, new roads and expansions of existing networks,' he said.
