Rents Rising in Dubai Putting Pressure on Residents

It is a season of rent rate shocks for Dubai residents as rental prices are soaring. Dubai not only bounced from the property crashes in 2009 and setting new growth records in real estate sector.  That is why you can see sales listings of villas advertised in the Al Furjan area near Discovery Gardens in Dubai.

Remarkable Trends
Some market trends in Dubai Property can be as summed up below.

• Cash payment dominates transactions after the UAE property market recovers
• Home buyers and renters most affected in Abu Dhabi and Dubai
• Housing costs in Dubai rising at fastest ate pace in three years
• In Abu Dhabi housing rates falling

The nitty gritty is that apartment rents soared 28 percent on a year to year basis and the same in the villas was 17 percent. For those planning apartments for sale in Dubai can take heart as sale prices soared 38 percent in the case of apartments and 24 percent in villas according to a property management company Asteco.

Price Correction in Dubai Property Market May Happen

The growing demand for prime property has engulfed the whole of the emirates. And Dubai is no exception as all its prime locations are in a mega real estate boom. Dubai, long considered a highly competitive yet lower priced market has taken this new real estate boom in all seriousness. Perhaps this is the last thing the government wanted.

Those looking at property for sale in Dubai, aver that Dubai is heading where many of the Asian markets have headed in the past–that of overpricing. The reason is pretty simple–there is not enough supply to meet the soaring demand for property in Dubai.