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Rentals seem to be on the Up again - L/L getting greedy again

163

Posts

EW NEWBIE

Latest post on 14 August 2011 - 21:33

Was just having a look at Dubizzle this evening as our situation here in Dubai is still not clear and I noticed that the rentals are just getting a bit crazy again, particularly on Arabian Ranches. Landlords seem to be getting very greedy again and asking almost ludicrous prices.

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5400

Posts

EW MASTER

Latest post on 15 August 2011 - 22:05

AussiePup, I was about to comment that prices in Meadows 9 seem to have increased - there are a couple newly for rent in our street which seem to be going for 200k to 220k (I checked the rental co's websites and guessed!), which is at least 20k more than we have signed up for, with no increase in demand, as far as I can see - there have been at least two empty houses on our street since we moved in 9 months ago.

494

Posts

EW EXPLORER

Latest post on 15 August 2011 - 21:06

we've just had to move house because of this and found that prices where we were living have gone haywire - We were in the Lakes and paying 175... whilst I was continuing to find something in there the same size as what we were in they wanted 190-200!!!! What the!?!?!?! Needless to say we have now moved and got the house size we like (in Meadows 9), but the quality of the house is not as good and still had to pay 190 :( although from what I have seen getting anything in Meadows for less than 200 is pretty good and our dogs now love love love the size of the back yard, they have been out there running back and forth for ages tonight chasing each other. :)

Hello.Again.Kitty

1861

Posts

EW EXPERT

Latest post on 15 August 2011 - 20:50

Which is why LL's don't care if you don't want to pay. They know someone else WILL pay, and usually that someone else comes along right away Only if the property in question is sought-after in some way. Plenty of run-of-the-mill Springs villas sitting empty because the LL is asking too high a rent, and there's no real shortage of reasonably-priced Springs villas to choose from. And once you get onto apartments, the oversupply is just colossal. edited by edna.welthorpe on 15/08/2011 But that is just it.... appartments are the ones where I'm not finding the LL to budge at all. Not talking about the over the top luxurious ones... just the general ones like those in JBR, some Marinas, TECOM area.... those LLs are just stuck with high prices, and I can't imagine why. And I've noticed that some of those rentals had come down marginaly, but are upish again. Why? I can't fathom that one either. One LL in my building prefered to leave his apt empty, rather than reduce the rent by 10k... it was empty for 8 weeks before someone accepted, so ironically, he lost about 16k in missed rental during that time. I actually think that LLs of apts really didn't think of the maintenance charges when they bought in the general frenzy and so now, if they actually do the right thing and pay those charges, they have to keep the rentals up. I think I heard that the charges in JBR were about 30k, so if you think about it, a year's rental of 75k really doesn't bring in that much. Not that I'm at all sympathetic - they were laughing all the way to the bank when those same 2-beds were going for 220k, so maybe they shouldn't have blown all the cash.

3804

Posts

EW MASTER

Latest post on 15 August 2011 - 20:46

Which is why LL's don't care if you don't want to pay. They know someone else WILL pay, and usually that someone else comes along right away Only if the property in question is sought-after in some way. Plenty of run-of-the-mill Springs villas sitting empty because the LL is asking too high a rent, and there's no real shortage of reasonably-priced Springs villas to choose from. And once you get onto apartments, the oversupply is just colossal. edited by edna.welthorpe on 15/08/2011 But that is just it.... appartments are the ones where I'm not finding the LL to budge at all. Not talking about the over the top luxurious ones... just the general ones like those in JBR, some Marinas, TECOM area.... those LLs are just stuck with high prices, and I can't imagine why. And I've noticed that some of those rentals had come down marginaly, but are upish again. Why? Probably because all the areas you've mentioned are desirable at the moment, so they're trying their luck. I;ve had so many friends move into those areas recently.

78

Posts

EW NEWBIE

Latest post on 15 August 2011 - 20:29

Which is why LL's don't care if you don't want to pay. They know someone else WILL pay, and usually that someone else comes along right away Only if the property in question is sought-after in some way. Plenty of run-of-the-mill Springs villas sitting empty because the LL is asking too high a rent, and there's no real shortage of reasonably-priced Springs villas to choose from. And once you get onto apartments, the oversupply is just colossal. edited by edna.welthorpe on 15/08/2011 But that is just it.... appartments are the ones where I'm not finding the LL to budge at all. Not talking about the over the top luxurious ones... just the general ones like those in JBR, some Marinas, TECOM area.... those LLs are just stuck with high prices, and I can't imagine why. And I've noticed that some of those rentals had come down marginaly, but are upish again. Why?

edna.welthorpe36638

516

Posts

EW GURU

Latest post on 15 August 2011 - 18:33

Which is why LL's don't care if you don't want to pay. They know someone else WILL pay, and usually that someone else comes along right away Only if the property in question is sought-after in some way. Plenty of run-of-the-mill Springs villas sitting empty because the LL is asking too high a rent, and there's no real shortage of reasonably-priced Springs villas to choose from. And once you get onto apartments, the oversupply is just colossal. The RE in Dubai started decling in Oct 2008, yet 4 months later, people were blogging, posting in forums etc sying stuff like "Dubai is different" Three things really stick in my mind. One is a quote from either 7 Days or the Gulf News in about November 2008, when the collapsing property market couldn't be denied any longer; a British expat who was trying to sell his villa was quoted as saying something like "The value has fallen but it's just a blip, I confidently expect that prices will be rising fast again by December". The second was a comment made on a forum by one of those expats who'd made some money on the off-plan Dubai market during the boom and thought that made her a financial expert. At the start of the credit crunch she confidently predicted that Dubai wouldn't affected because "Dubai is awash with liquidity", or words to that effect! Talk about being suckered in by the propaganda! Apparently, once it was obvious that the Dubai property market was in freefall, she did a complete 180 and tried to pretend that she'd never said it. The really big one, though, was an article in either the Gulf News or Khaleej Times in about August/September-ish of 2008. Someone extremely senior at Emaar was quoted as saying that he believed that the credit crunch (as it was starting to be called) would be fantastic news for the UAE property market, because the rest of the world would pour their money into it as a safe haven and push prices to even more stratospheric heights. I wish I'd saved that article at the time, because I've searching for it since and can't find it... almost like it's been removed from the web... ;) <em>edited by edna.welthorpe on 15/08/2011</em>

369

Posts

EW EXPLORER

Latest post on 15 August 2011 - 15:22

[i'>There was a quote i remember: "the business leaders of Dubai will not allow the market to go down, they will use their power and money to keep the market high etc".[/i'> Yep the denial runs deep and wide.

993

Posts

EW GURU

Latest post on 15 August 2011 - 15:19

Yes there are greedy landlords out there, stupid as well.... We are the victims of non renewal as we contested a rent increase last year and ll had to back down. This year they did not even offer a renewal. This is a company that has many villas, one of these anonymous type offices out in jebel Ali ....they think they will get another 20k or so on top...we have looked after this villa since day one when it was built and I hope if they get new tenants, they kick the **** out of the place! And sadly the "anonymous" company wont even care. They would gladly have a pigsty like villa as long as they get rent.

78

Posts

EW NEWBIE

Latest post on 15 August 2011 - 15:18

Trouble is, you and I won't be willing to pay unnecessarily high amounts for a new lease. The LL won't back down from his price, and another will come along, and be happy to pay the asking price. Which is why LL's don't care if you don't want to pay. They know someone else WILL pay, and usually that someone else comes along right away. If everyone stopped paying the asking rate, LLs will back down......... but then, that rarely happens, does it.

993

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EW GURU

Latest post on 15 August 2011 - 15:18

If you fancy a laugh, check out [url=http://www.ameinfo.com/170486.html'>this article from AME Info[/url'>. Note the date, and note how completely divorced from reality the statements being made are. It was already obvious by then the Dubai property market was starting to collapse. The RE in Dubai started decling in Oct 2008, yet 4 months later, people were blogging, posting in forums etc sying stuff like "Dubai is different" There was a quote i remember: "the business leaders of Dubai will not allow the market to go down, they will use their power and money to keep the market high etc". It took till end of 2009 for the most die hard of fans on some forums to finally keep quiet or disappear

edna.welthorpe36638

516

Posts

EW GURU

Latest post on 15 August 2011 - 15:00

Our LL keeps banging on about how much he paid for the property and how he's losing money (whilst I know he paid a lot more than it is worth today, although it's only 2 years old) he still says he should be getting xx thousand more for it And therein lies one of the big problems. So many LLs here have only ever operated within the UAE market and they don't understand how the real world works. They genuinely don't understand that supply and demand works both ways - rental values go up during periods of high demand and low supply, and vice-versa. They honestly think that because they paid X for the property, they deserve enough rent to cover their costs, regardless of what the market is doing. Then again, so many of them were suckered in by the gold-rush mentality of pre-crash Dubai, and they believed all that nonsense about it being impossible for the Dubai property market ever to fail. If you fancy a laugh, check out [url=http://www.ameinfo.com/170486.html'>this article from AME Info[/url'>. Note the date, and note how completely divorced from reality the statements being made are. It was already obvious by then the Dubai property market was starting to collapse.

spongemonkey980

4329

Posts

EW MASTER

Latest post on 15 August 2011 - 14:59

Yes there are greedy landlords out there, stupid as well.... We are the victims of non renewal as we contested a rent increase last year and ll had to back down. This year they did not even offer a renewal. This is a company that has many villas, one of these anonymous type offices out in jebel Ali ....they think they will get another 20k or so on top...we have looked after this villa since day one when it was built and I hope if they get new tenants, they kick the **** out of the place!

379

Posts

EW EXPLORER

Latest post on 15 August 2011 - 14:53

I absolutely agree with you Crystil, I would do the same, but, where does that leave the tenants that are actually living in these buildings??? We are the ones who are actually facing the lack of services. Hence a further drop in rent will be requested by us next renewal.[/quot It leaves us tenants between a rock and a hard place, not a very comfortable place to be. :)

993

Posts

EW GURU

Latest post on 15 August 2011 - 14:42

If a tenant's cheque bounces during the period of the tenancy, the landlord would have to file a police case and face a long delay before being able to evict the tenant and meanwhile the property is being occupied and not returning any money. If lls were able to evict tenants for breaches as in other countries they mikght be more willing to accept more cheques.. I dont think there is a "long delay" in case a cheque is bounced. I have heard of pretty swift actions taken for bounced cheque holders.... And is it really hard to evict tenants who break conditions here, i think not... <em>edited by Arch on 15/08/2011</em>

1811

Posts

EW EXPERT

Latest post on 15 August 2011 - 13:51

It's true that there is a lot more completed property coming on line but it is not all in areas that people would like to live. You can't compare living in an apartment on the Palm with living in International City or similar so the effect of over supply is limited to some extent. Landlords ask for one or a just a couple of cheques up front because there is no proper regulations regarding tenancies. If a tenant's cheque bounces during the period of the tenancy, the landlord would have to file a police case and face a long delay before being able to evict the tenant and meanwhile the property is being occupied and not returning any money. If lls were able to evict tenants for breaches as in other countries they mikght be more willing to accept more cheques. It's all part of Dubai not having a well developed real estate industry and it's hard on everyone but it's unfair to put the blame soley on landlords. As someone has already said, a property will only be occupied for what a tenant is willing to pay and so market forces will prevail.

114

Posts

EW NEWBIE

Latest post on 15 August 2011 - 13:03

as a renter I think a property is only worth what I am willing to pay and what the market value is. Our LL keeps banging on about how much he paid for the property and how he's losing money (whilst I know he paid a lot more than it is worth today, although it's only 2 years old) he still says he should be getting xx thousand more for it, but in reality he will only get what similar properties are worth and what tenants are willing to pay, or have to leave it empty and get nothing back for it. I guess that's the gamble when you buy a to rent property.

edna.welthorpe36638

516

Posts

EW GURU

Latest post on 15 August 2011 - 12:33

I think a big part of the problem is that during the boom, when so many properties were bought and sold off-plan, nobody actually gave much thought to the fact that one day, these places would actually be built (well, some of them, anyway!) and people would be actually living in them and/or paying a mortgage on them. If they did think about such things, they assumed that by some magical process the value of property would always increase and that there would always be a constant influx of potential tenants all fighting with each other to pay whatever the LL demanded. So nobody ever really thought that things like service charges, maintenance and all that stuff would ever be an issue.

138

Posts

EW NEWBIE

Latest post on 15 August 2011 - 12:12

Shoreline, Palm Jumeirah. Nakeel are doing the bare minimum with regards to building maintanence, there is even talk of tenants being asked to pay for the use of the gym/pool, but that may be pure gossip. Things have certainly deteriorated since we moved in, sadly. It apparently stems from the apartment owners (landlords) not paying the service charges. It's because of the lack of services that LLs are withholding the annual service charges. Bear in mind that it doesn't pertain to one property, but to all owned/managed by Nakheel, including the villas on the fronds. I'm in Marina Residence and when I had an issue inside my apartment that was a result of the construction, I was told that they don't do any work inside apartments. The garbage chute doesn't work, trash is dropped in one bin and the overflow goes on the floor, the hall floors are washed maybe once a week, there used to be 2 people at the security desk, now it's one who is constantly missing from his station, side doors are locked but lower level doors are open 24/7 giving anyone access. If I was an owner I certainly would withhold the service charges seeing as how there isn't any service. I absolutely agree with you Crystil, I would do the same, but, where does that leave the tenants that are actually living in these buildings??? We are the ones who are actually facing the lack of services. Hence a further drop in rent will be requested by us next renewal.

379

Posts

EW EXPLORER

Latest post on 15 August 2011 - 12:02

Shoreline, Palm Jumeirah. Nakeel are doing the bare minimum with regards to building maintanence, there is even talk of tenants being asked to pay for the use of the gym/pool, but that may be pure gossip. Things have certainly deteriorated since we moved in, sadly. It apparently stems from the apartment owners (landlords) not paying the service charges. It's because of the lack of services that LLs are withholding the annual service charges. Bear in mind that it doesn't pertain to one property, but to all owned/managed by Nakheel, including the villas on the fronds. I'm in Marina Residence and when I had an issue inside my apartment that was a result of the construction, I was told that they don't do any work inside apartments. The garbage chute doesn't work, trash is dropped in one bin and the overflow goes on the floor, the hall floors are washed maybe once a week, there used to be 2 people at the security desk, now it's one who is constantly missing from his station, side doors are locked but lower level doors are open 24/7 giving anyone access. If I was an owner I certainly would withhold the service charges seeing as how there isn't any service.

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 15 August 2011 - 10:52

People must be paying these prices so agents just fob you off if you don't want to pay their price, so what choice are you left with? Everyones gotta have somewhere to live.... Yes the prices aren't as they were in 2008, but they are definitely on an up whether it's a false market or not, we don't have much choice in the matter".. Yes, prices are up for villas in good areas, but not for apts in general. As for "people must be paying those prices" I dont think so, some landlords may not be in a hurry to rent out their places; a lot of the investors from places like Russia, Nigeria,Sub continent etc who parked their black money or smuggling/mafia proceeds may be like that :) So the agents have more leeway to "pretend" that people are paying 20k more than what is normal. If you are in a hurry you may take it, else you will look around the market until you find something more reasonably priced. Similarly a landlord who has mortgages to pay off may be willing to be more reasonable. People must be paying those prices is more in reference to villas in sought after areas. Apartments are far more negotiable in general, and I haven't had much to do with apartments as I've only ever lived in villas :) With apartments, there's definitely an over supply so I'm sure you can negotiate far more with them, but with villas it seems you haven't got that luxury.

993

Posts

EW GURU

Latest post on 15 August 2011 - 10:45

It apparently stems from the apartment owners (landlords) not paying the service charges. Its a vicious circle; Developers wont provide services but wants service charges . Landlords wants the rent paid in 1 cheque , but wont pay service charges because he doesnt trust the developers The one who gets shafted in the end is often the tenant.

993

Posts

EW GURU

Latest post on 15 August 2011 - 10:43

People must be paying these prices so agents just fob you off if you don't want to pay their price, so what choice are you left with? Everyones gotta have somewhere to live.... Yes the prices aren't as they were in 2008, but they are definitely on an up whether it's a false market or not, we don't have much choice in the matter".. Yes, prices are up for villas in good areas, but not for apts in general. As for "people must be paying those prices" I dont think so, some landlords may not be in a hurry to rent out their places; a lot of the investors from places like Russia, Nigeria,Sub continent etc who parked their black money or smuggling/mafia proceeds may be like that :) So the agents have more leeway to "pretend" that people are paying 20k more than what is normal. If you are in a hurry you may take it, else you will look around the market until you find something more reasonably priced. Similarly a landlord who has mortgages to pay off may be willing to be more reasonable.

138

Posts

EW NEWBIE

Latest post on 15 August 2011 - 10:31

We have had a reduction in rent for the last 3 consecutive years, I am hoping for a further reduction when we next renew. The market is still flooded with apartments in particular. Don't let greedy landlords get away with it. RERA guidlines are all very well but don't take into account building maintenance, or lack of it!! Villas are a slightly different issue, fewer of them for a start. What area are you in if you don't mind me asking? Shoreline, Palm Jumeirah. Nakeel are doing the bare minimum with regards to building maintanence, there is even talk of tenants being asked to pay for the use of the gym/pool, but that may be pure gossip. Things have certainly deteriorated since we moved in, sadly. It apparently stems from the apartment owners (landlords) not paying the service charges.

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 15 August 2011 - 10:22

We have had a reduction in rent for the last 3 consecutive years, I am hoping for a further reduction when we next renew. The market is still flooded with apartments in particular. Don't let greedy landlords get away with it. RERA guidlines are all very well but don't take into account building maintenance, or lack of it!! Villas are a slightly different issue, fewer of them for a start. What area are you in if you don't mind me asking?

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 15 August 2011 - 10:22

I have been following the rentals quite closely and they have been going up in certain area since 2009.. Villas in sought after areas have definitely increased, for eg the springs, meadows, lakes, Arabian ranches, the palm, JI even falcon city. The prices are still falling in DG, international city and several of the newer communities.... It's a hard battle to fight against the agents who advertise properties 10-20k higher than the rents should be and then say not negotiable.... I was shocked when an agent said she rents out the 4m in the springs for 100-110k when really they should be at 75-95k. I called several agents in AR and they all said 115-145 for a 3m saying 115 was a bargain... People must be paying these prices so agents just fob you off if you don't want to pay their price, so what choice are you left with? Everyones gotta have somewhere to live.... Yes the prices aren't as they were in 2008, but they are definitely on an up whether it's a false market or not, we don't have much choice in the matter"..

993

Posts

EW GURU

Latest post on 15 August 2011 - 10:03

I'm not a LL but for the first year we lived in Dubai (2007) I was a tenant and I honestly don't see LL trying to get the maximum rent they can as 'greedy'. . Agree. But you know what is greedy? Trying to kick out tenants in the middle of a contract so they can get higher rents Refusing to have maintenance done Becoming unreachable when required Landlords have the right to maximum rent they can get, but when they start thinking that renting out a 1 bedroom flat will entitle them to a Porsche Cayenne and a Maserati within 1 year of owning the flat, they act delusional and pretend rents are going up when they arent, and demand 1 cheque payments etc And even when times are bad, there are so many landlords who renege on maintenance, thats it creates a bad reputation for all of them. I am not talking about wear and tear maintenance, but rather more long term stuff.

138

Posts

EW NEWBIE

Latest post on 15 August 2011 - 09:56

We have had a reduction in rent for the last 3 consecutive years, I am hoping for a further reduction when we next renew. The market is still flooded with apartments in particular. Don't let greedy landlords get away with it. RERA guidlines are all very well but don't take into account building maintenance, or lack of it!! Villas are a slightly different issue, fewer of them for a start.

993

Posts

EW GURU

Latest post on 15 August 2011 - 09:56

Thats because many landlords are delusional. At the bottom of the market there were landlords asking for 1 cheque payments. I dont know anywhere else in the world that it happens, landlords everywhere have mortgages, but only here do they demand 1 years rent upfront. .... <em>edited by Arch on 15/08/2011</em>

4062

Posts

EW MASTER

Latest post on 15 August 2011 - 09:17

I'm not a LL but for the first year we lived in Dubai (2007) I was a tenant and I honestly don't see LL trying to get the maximum rent they can as 'greedy'. I do think that LLs should follow Rera guidelines with regards to increases for exisiting tenants but why shouldn't they try to get the maximum they can when renting out a property anew? They take the risk, they should reap the benefits when times are good, or, on the other side, take the hit when times are bad.

1692

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EW EXPERT

Latest post on 15 August 2011 - 09:12

Our LL tried to insist that he HAD to increase the rent by 25%!

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Dubai Just Launched a Travel Influencer Academy

Central Bank of UAE reveals new official currency symbol for the Emirati dirham

UAE Unveils New Official Dirham Symbol, Inspired By the Country's Flag

His Highness Sheikh Mohammed announces 3 best UAE government departments

Pictured: His Highness Sheikh Mohammed at a UAE Cabinet meeting.

H.H Sheikh Mohammed Ranks 3 Best & Worst UAE Government Departments

New 10-Year UAE Residency Visa for Dubai Content Creators and Influencers

There's a 10-Year UAE Residency Visa for Dubai Content Creators and Influencers

UAE president announces 2025 will be the 'Year of Community' in the emirates

Confirmed: 2025 Will Be The 'Year of Community' in The UAE

Breakfast with penguins at Ski Dubai Mall of the Emirates

You Can Now Enjoy Breakfast With Penguins in Dubai

How to convert another country's drivers license in Dubai

How to Convert a Non-UAE Driving License in Dubai: A Complete Guide

Registrations open for EYFS curriculum Willow Children's Nursery in Dubai

Where to Choose the Best EYFS Children's Nursery in Dubai Marina

List of confirmed UAE public holidays in 2025

List of UAE Public Holidays in 2025: Announced and Expected Dates

Outdoor cinemas in Dubai for the winter season 2024

The Best Outdoor Cinemas in Dubai to See Open-Air Movies This Winter

Executive Hospitality Programme at South View School in Dubai

Introducing the Executive Hospitality Programme at South View School Dubai

Expat legal consultants in the UAE | Dr. Hassan Elhais

Meet Dr. Hassan Elhais: A Pillar of Legal Expertise for Expats in the UAE

Saray Spa promotions at JW Marriott Marquis Hotel Dubai

This Luxury Dubai Spa Has Some of the Very Best Breaks To Escape To

A Complete Guide How to Get an Influencer License in Dubai and UAE

How to Get a UAE Influencer License: Step-By-Step Guide & Requirements

UAE Emirati Lawyer Awatif Khouri in Dubai and Abu Dhabi

Meet the Emirati Woman Breaking Grounds in UAE Law: Awatif Khouri

Dubai's gravity-driven tunnel to reduce flood risks by 700%

Pictured: Flooded roads from the record-breaking storm that hit Dubai in April 2024.

Dubai Flood Risk to Be Cut Down by 700% With New Tunnel

8 Beauty Treatments in Dubai for busy moms

8 Beauty Treatments in Dubai: Self-Care Recommendations for Busy Moms

Mashreq NEO NXT Account | Why Kids and Teens Need Financial Education

Why Teens Need Real-World Financial Education?

E-scooters are no longer banned on the Dubai Metro stations and trains

RTA Finally Lifts E-Scooter Ban From Dubai Metro

Spa packages at Saray Spa in JW Marriott Marquis Hotel Dubai

Step Into the Ultimate Relaxation Bliss With Saray Spa's Pampering Packages

How to book Dubai taxi through WhatsApp

Booking Taxis in Dubai: How to Hail a Taxi Through WhatsApp

Experience Extended Stays and Special Savings at Le Meridien Al Aqah Beach Resort UAE

Soak Up the Summer With the Ultimate UAE Staycation Special

RTA Dubai flying taxi official launch date

Image credit: Joby Aviation.

RTA Finally Confirms Launch Date of Dubai's Flying Taxis