UAE: Fear of Eviction, Rising Rents Push Residents To Buy Properties
Tenants in Dubai are increasingly looking to buy properties as they fear receiving eviction notices from landlords due to the rise in rentals. According to reports, the supply of new residential units remains tight in both sales and rental markets, which means little relief from rentals for tenants and price increases for buyers. The emirate’s real estate saw its unprecedented run that started after the pandemic continued unabated this year as well.
According to official figures announced this month, Dubai real estate transactions jumped 80 per cent to Dh157 billion in the first quarter of 2023 as compared to Dh87 billion in the same period last year. The number of transactions also grew by 49 per cent from 26,066 to 38,715 during the comparative period while sales value grew 62 per cent to Dh89 billion.
The brokerage firm said occupancy rates in freehold areas remained stable while occupancy in leasehold areas hit a record high of 97 per cent.
In Q1 2023, approximately 5,000 new homes were completed which is significantly lower than the current market conditions required, it said. The strong performance of the local property market in the first quarter has put any fears of a market slowdown were put to bed.
