A surge in rent prices is hitting mid-market homes in Dubai and Sharjah, as new leases are reportedly seeing sharp increases. According to a report, the rental increases are most evident in certain neighbourhoods, with prices for two-bedroom apartments in Discovery Gardens reaching as high as Dh65,000, up from Dh40,000 last year. Similarly, two-bedroom units in Muwaileh, Sharjah are now leasing for Dh32,000, compared to Dh24,000 in 2020. The soaring demand for affordable housing in these areas has been attributed to a combination of factors, including the migration of residents from more expensive locations, as well as an influx of new tenants looking for budget-friendly options.
Industry experts have noted that the rapid rise in rent prices for mid-market homes is also being driven by an increase in construction costs and a limited supply of affordable housing in the market. As a result, many residents are being forced to consider alternative options in order to find suitable accommodation within their budget. Some are opting to downsize to smaller units or share apartments with roommates, while others are looking to move to less expensive emirates outside of Dubai and Sharjah.
The current rental trend is a stark contrast to the previous year, when rent prices in Dubai and Sharjah saw a decline due to the economic repercussions of the COVID-19 pandemic. However, with the gradual recovery of the property market and the return of economic activity, rents have started to climb steadily, especially in popular mid-market areas. As a result, tenants are facing tough choices when it comes to renewing leases or finding new accommodation that fits their budget.
Real estate agents are advising tenants to be proactive in their search for affordable housing and to consider all available options before making a decision. They are also recommending that tenants negotiate rent prices with landlords and explore the possibility of signing longer-term leases to lock in lower rates. However, with the current market conditions favouring landlords, many tenants are finding it increasingly challenging to secure affordable housing without compromising on quality or location.
Despite the challenges, experts remain optimistic about the future of the rental market in Dubai and Sharjah, predicting a stabilisation of prices in the coming months as more supply comes on the market. In the meantime, tenants are advised to closely monitor rental trends and be prepared to act quickly when new opportunities arise. With a little bit of patience and flexibility, it is still possible to find affordable housing options in these competitive markets.
In conclusion, the sharp increases in rent prices for mid-market homes in Dubai and Sharjah are posing challenges for tenants looking for affordable accommodation. With limited supply and rising construction costs, many residents are being forced to reconsider their housing options and make difficult decisions about where to live. Despite the current market conditions, experts believe that prices will eventually stabilise, providing tenants with more choices and opportunities to find suitable housing within their budget. In the meantime, tenants are advised to stay informed, negotiate with landlords, and be prepared to adapt to changing market conditions in order to secure the best possible deal.
