The last few years have been challenging for UAE residents in search of a home. The costs of both owning and renting have skyrocketed, forcing many to reassess their spending and housing choices.
According to JLL’s recent Q1 2024 UAE Real Estate Market Overview, “The cost of buying or renting in Dubai has increased by around 21%. In Abu Dhabi, sales prices have risen by an average of 7%, while rental rates have seen a 4% increase during the same period.”
Location, Location, Location
Is moving further from prime locations the only solution? The phrase “Location, Location” has long been a key factor in real estate markets in places like Europe and the U.S., but it didn’t always resonate in a rapidly developing country like the UAE. However, the recent boom has firmly established certain areas as highly desirable.
Battling Landlords?
Have you found yourself in tough negotiations with landlords? With the introduction of new laws, both landlords and tenants are navigating a complex landscape. While the UAE government has made significant strides in tenant protection, finding middle ground is still stressful. “Back in the day,” tenants had fewer options, but now, thanks to new regulations, there’s more balance—even if negotiations remain challenging.
Real Estate Forecasts: Bubble or No Bubble?
What’s the future of this market? It’s hard to find a real estate agent who would suggest the market will cool down anytime soon. I’ve heard some interesting takes on when—or if—the bubble will burst.
One agent’s recent response to that question stuck with me:
“We don’t see it as a bubble. It’s more about people diversifying their portfolios and families returning to apartment living.”
The market is thriving, but we’ve seen this before. Even without a repeat of the 2008 crash, some form of correction is inevitable. Remember when developers started throwing in free cars with apartments? Those days could return.
Where Do We Go From Here?
Mintaga, like many businesses, has faced its struggles since the pandemic. But we’re back, working to establish a new digital resource for both new and seasoned residents of the UAE. Our goal is to build on our stellar reputation as the most independent property review platform in the region, giving all UAE residents a trusted resource for their housing decisions—whether you’re looking to move, rent, or buy.
Thinking of moving? Check out our site for a wealth of information on both new and established areas. Hopefully, we can help make your decision a little easier.