When it comes to settling in Dubai, you have two options. Either you can buy home in Dubai or get a rental property. But most importantly, whatever your final decision is, it will have a significant consequence on your life in Dubai. So before you come to a conclusion, you must consider important aspects and Why do people prefer Dubai rental home?.
Dubai is a modernized and highly developed city across all the other cities in the United Arab Emirates and the Middle East. That’s why people from all over the world prefer to reside in Dubai. Also, the incredible working opportunities and high standard of living make Dubai the home of millions of expats from all across the globe.
As more foreigners are arriving in Dubai, there is a humongous demand for the property in Dubai. Since the demand for Dubai real estate has increased, significant construction and development have started in Dubai. So it makes it easier for expats to reside in their preferred location
However, since 2004, Dubai has noticed a sharp decline in property ownership. The possible reason could be the high value of Dubai property that makes the property un-affordable for people. However, people see renting the property as the best alternative.
There are several other benefits that you can’t experience when you are buying a house in Dubai. So if you are interested in investing in Dubai rental properties, it’s critical to understand the secrets that help you find the best rental property. In this article, we have mentioned some helpful advice you should consider before acquiring Houses Dubai rent Why do people prefer Dubai rental home?.
Short term duration
Dubai is a house of expats that move from their native country for a temporary period. Most expats move to Dubai to earn a living because of thriving jobs and business opportunities. However, according to multiple reports, 80% of the foreigners come to Dubai intending to return to their home countries once their contract is over.
In such a case, renting a Dubai property is a preferable option. In addition, the cost of renting a property is much less than buying. All you need is enough finances for the down payment and monthly rent. On the other side, in the case of buy property in Dubai, a hefty amount is required, plus several fees are incurred. Usually when renting a one-year contract is signed between tenants and landlords. After that, the agreement can only be terminated in case of a payment issue or disparity with the property.
Flexibility and relocation
Dubai is a cosmopolitan city which means you will find people from different cultures and traditions. For example, you have purchased a property at some particular location. But after a few times, you cannot settle yourself in the environment, and now you are looking to shift to a new place. But this wouldn’t be possible in a short period since you have purchased a property.
If you have rented a property in a similar scenario, you can easily move to a new place. Also, Dubai is known for its jaw-dropping infrastructure and diverse culture. And if you are looking to explore Dubai, renting a property is the greatest option. From time to time, you can shift from one spot to another. However, once you make a purchase, there isn’t much you can do except maybe looking for a new buyer.
Real estate in Dubai is full of uncertainties. A huge risk of market downfall is always there, and you need to be cautious all the time. Investors who had invested in Freehold developments are making a handsome profit, but many foreigners lost all their investments. The main reason is a delay in the construction for years. So anyone who prefers to invest in Dubai property market must be watchful and ready in case of market fluctuation.
In a similar case, expats who reside in rental properties aren’t much affected. However, a rise or dip in real estate doesn’t directly affect the people living in rental properties.
Expats and foreigners from other countries living and working in Dubai are always looking to save money. Renting a property in Dubai is a cost effective option compared to buying. In addition, if you are living in Dubai for a short duration, buying a home will require a heavy amount that includes the property’s value plus other fees. Contrastingly, renting a house in Dubai requires paying a security deposit and monthly rent.
When it comes to renting a property in Dubai, you are obliged to pay a security deposit and monthly rent. In case you are stuck in any financial constraints, you can immediately terminate the contract and get back the fee you deposited earlier as security charges. The amount you pay each month as rent plus the security fees will help you get out of financial distress.
Whereas, in the case of buying a property in Dubai, withdrawing money from investment is impractical. You cannot even discontinue monthly mortgage payments, or the bank will seize the property.
Why do people prefer Dubai rental home?
Things to take care of before rent a property in Dubai
You have several options to rent a property in Dubai. From rental Dubai villa to the farmhouse for rent Dubai. But before you make a choice, it is of critical importance to consider important factors to make a perfect choice.
There is a huge possibility that renting process might be completely different from your country. So if you are looking forwards to some sound advice, check out the section below.
Tenant laws and rights
As a tenant, you hold the rights protected under emirates law. A rental contract authorized and registered under the emirate government is the most protected tenancy agreement. To make your rental agreement secured, you are first required to register your tenancy with Ejari. Once you have registered yourself here, you now have full rights as a tenant.
Property owners cannot raise rents unsystematically. Generally, there is a period of approximately 90 days in which the landlord must notify the tenants in case of raising the rents. In addition, the property owner cannot increase the rent on its own. Usually, Rera has a rental index published every quarter that determines how much rent should be increased. Based upon the formula, the property owner can raise the formula legally. This means if you pay less rent than the market, you must be getting ready for the hike.
Contracts and deposits
Generally, the rental contract between tenants and property owners are for at least 12 months. In case of any financial issue or any other unavoidable circumstances, if you breach the contract, you have to pay the penalty. You and the property owner can agree upon the terms and conditions of the contract, so the better idea is that if you are looking for any changes, you can make it before signing the contract.
Once both parties sign the contract, the broker will issue a blue tenancy contract. You need to be getting it legalized by registering it with Ejari. Furthermore, the blue contract form, and the Ejari record, must have proof of deposit that you have paid to the landlord. To keep things going in the right direction, you must get in touch with a top real estate companies in Dubai such as time homes real estate. With the best minds in the real estate business, they can provide your best recommendations.
Utilities and bills
There are various factors to take into consideration, so they must be discuss or mentioned in the rental agreement. For example, utility bills such as electricity must be pay by the tenant. Mostly luxurious places or fully serviced apartments will quote a price that includes all the bills and the maintenance cost.
So before you sign the rental agreement and move to the rental Dubai property, you must ask the property owner about the average costs of different bills and maintenance costs. So in the future, you don’t have to face any difficulty.
In the end
Without a shadow of a doubt, most of the Expects prefer to reside in Dubai rental property. There are several reasons that support their opinion. Among the reason, we have mentioned a few of them above. However, in most cases, Expects don’t stay in Dubai for more than 5 years. And in that duration, if they buy home in Dubai, they will spend most of their money on the property. Therefore, to save time and money, expects tries to adopt a much easier option: renting.
However, if you are staying in Dubai for more than 5 years, in such a case, buying a home in Dubai is the best choice. Time homes real estate is a number one destination if you are looking for appropriate guidance in Dubai real estate market. They have assisted a large number of expats and permanent residents in finding the best accommodation on the budget and I hope you understand well, Why do people prefer Dubai rental home?.