UAE residents who will be renting for the first time are likely to pay more for smaller spaces, owing to a rise in rentals and a shortage of villas, according to real estate industry executives.
The desire for larger flats and villas has increased as a result of Covid’s impact on mobility. According to real estate industry insiders, residents in UAE who will be renting a space for the first time are basically now expected to pay more for smaller rooms due to an increase in rentals and a lack of villas.
“With rental prices on the increase daily, new tenants that enter the market must understand they are likely to get less with their money than those who are already in the market and have a bigger unit. Although rent rising is inevitable, those with bigger units are likely to hold onto these… therefore, there are more readily available smaller units,” said Morgan Owen, managing director, Provident Real Estate.
Ali Rao, group CEO of Kingsley Properties, said new buyers are shifting to apartments because of annual contracts that make it more feasible for them to move every year.
He said many residents continue to live in smaller apartments because they now realise that the changes they adopted during Covid-19 are “perhaps more sustainable and cost-effective”.
Ayman Youssef, vice-president at Coldwell Banker, UAE, said the shortage of villas and townhouses continues to push prices up in the segment.
The demand for luxury-serviced houses and sea-facing flats is steadily rising. The expert added that although this trend is not as aggressive in apartments. On the other hand, the inexpensive property market has undergone a mild price increase.