‘ Downsizing’ becomes hot rental trend
In Dubai, Bur Dubai Deira and Al Ghusais are among areas gaining from shift
Anew residential rental sub- market is opening up in the UAE, as residents look to “downsize”, amid salary cuts or worries about likely job losses in future. Their intention is to try and save as much as possible on their rental expenses, and landlords are taking note.
Older buildings with smaller apartment sizes are seeing a fresh wave of demand, with landlords willing to lower their rents even below the market average. In Dubai, locations such as Deira, Bur Dubai and Al Ghusais are capturing much of this downsizing shift.
A one- bedroom apartment in Deira, for instance, starts from Dh25,000 a year after a 13 per cent decline in rents in that area in the 12 months to September. In International City, a one- bedroom can be found for even Dh20,000, according to the latest market update from Asteco, for those tenants looking to cut down on expenses as much as possible.
Even in Sharjah, this trend is visible, with older buildings and landlords who are willing to compromise on their demands being the beneficiaries.
“While numerous residents are downsizing in terms of unit sizes, quality specifications and/ or location, others are repatriating to their home countries,” said John Stevens, Managing Director at Asteco, the property consultancy. “Or sending their extended family back due to job losses, salary cuts and/ or simply as a preemptive measure given current uncertainties and risks.”
Even in newbuildings
Market sources say that rental changes are not just apparent in older buildings and established locations. Apartments at recently completed freehold buildings in Dubai Healthcare City have seen some landlords offering multiple rents — all below Dh30,000.
In a sign that these are unprecedented times, many landlords are even willing to rent on short- term leases, something that residents concerned over their job situation will find handy to take up. It also helps landlords, because tenants can exit their leaseswithout penalties.