# Why are rental prices so steep still?



## Onerahi27 (Nov 14, 2009)

Can anyone shed some light as to why the rental prices seem so steep still when there is an abundance of apartments coming onto the market and many are empty now.

I move to Dubai in Jan so want to sort something out soon, but cant gauge if I am being conned by these websites. 75k a year for a 1 bed.

Does anyone know of any good sites for rental or buying?
Also though I have been to daubai several times for work, i havent been to the Dubai Marina area, but this seems very popular, is it a good place to live?


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## wandabug (Apr 22, 2010)

You are not being conned by a website, the owners of these apartments have to pay mortgages and ridiculously high service charges, in some instances they are only getting a 2% return. Regardless of the abundance of properties coming onto the market the rents cannot drop below a point where the landlords are making a loss. Popular areas are still experiencing high occupancy and the rents reflect that. Less desirable areas (International City) are where you need to look if you don't want to pay much rent. Dubai Marina is an expensive place to look, but you will see that the rents vary alot even within the Marina as some buildings are much more popular than others. You can get a 1bed at JLT for 55k which is just over the road from The Marina - there are 2 metro stations at JLT and footbridges over to The Marina.


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## wandabug (Apr 22, 2010)

Dubai Property Real Estate for Sale and Rent. Jobs in Dubai, Classifieds in Dubai with Dubizzle.com


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## Mr Rossi (May 16, 2009)

Advertised prices online are generaly higher for a number of reasons. One is to take advantage of people just off plane. Another is setting an initial high price due to the culture of haggling here.

The Marina is a popular area with expats, especially younger and/or more socially active ones. All depends on your definition of 'good area' though.


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## dizzyizzy (Mar 30, 2008)

Onerahi,

You can find better deals but you need to haggle. I am looking for flats myself just now and I totally hate to haggle but is an absolute must if you want to get a good deal. Some landlords are still in denial about how low rents have gone and they are in this delusion that they can still rent at the old rates and on one cheque. But most of them are getting reasonable now. Also as wandabug says, they still have to cover at least the maintenance fees. Also some agencies (Hamptons, Better Homes) tend to advertise higher rents.


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## Rochelle (Sep 20, 2010)

Onerahi

If you compare living in marina to living in the viaduct... 75,000dhs for a one bed furnished doesn't sound so bad. 

JLT is a great option at $384/NZD a week. If you want the same kind of rent you pay outside of auckland (not sure where you are from) then somewhere like International city at say 30,000dhs ($211NZD/week) then expect to live somewhere away from the 'centre' and not as nice!  

Like anywhere the less rooms you have, the more you pay per room (a 2 bed isn't double etc)


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## Tropicana (Apr 29, 2010)

1) Rates have really come down for places like international city and DG, however rents in good areaslike Marina are still relatively high/ 

2) I saw a huge 1 bd (1000 sqf+) for 50000 in JLT and thought it was a good deal. However the watchman and some other tenants all laughed and said I was being conned. 
3) I think existing tenants are the ones getting the maximum benefit from dropping rents.


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## Anwaruddin (Oct 15, 2010)

For owners, it's easy to raise the price levels and find it hard to accept 'sometimes' that rents have to go down when some sort of economic thing goes stable or so. Look for a good agent. It's the key.


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## Sparkysair (Jul 16, 2008)

Tropicana said:


> 1)
> 3) I think existing tenants are the ones getting the maximum benefit from dropping rents.


Very true. I've just renewed my lease and was quite surprised at the new rent the landlord proposed - a reduction of 25% before negotiations even started. We've actually settled on a smaller reduction but with the benefit of paying 12 checks rather than 1 like last year. 

It's absolutely worth haggling and a good agent is worth their weight in gold but very hard to find! From my experience, stay away from the big agencies like Better Homes (just an example) as they do seem to inflate rental prices and are not willing to haggle as much with the landlords.


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## Dozza (Feb 17, 2009)

Sparkysair said:


> Very true. I've just renewed my lease and was quite surprised at the new rent the landlord proposed - a reduction of 25% before negotiations even started. We've actually settled on a smaller reduction but with the benefit of paying 12 checks rather than 1 like last year.
> 
> It's absolutely worth haggling and a good agent is worth their weight in gold but very hard to find! From my experience, stay away from the big agencies like Better Homes (just an example) as they do seem to inflate rental prices and are not willing to haggle as much with the landlords.


Indeed - One thing we all need to remember is the agent is getting 5% commision, so the higher the rental price, the better it is for them.

If you stick to your guns & haggle, there are lots of good deals about, you just have to search for them.


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## Tropicana (Apr 29, 2010)

Not all agents take 5%, some of them take a fixed amount to show they dont have a vested interest in a higher rent.
I am however, quite appalled at the number of landlords/agents who quote outlandish prices, and then refuse to budge ....


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## titirangi (Aug 14, 2008)

JBR/Marina side if your budget permits.
Else JLT and put up with poor access, construction and sand.
International city is a disaster, if thats all your budget allows then don't come.
If your work is downtown area then lots of new release around dubai mall, nice stuff too and cheaper than marina I hear.

A good agent is great however finding one is not easy. You will often get an entrepreneurial indian chap and have a somewhat frustrating experience. Patience is key here - they just trying to make a buck like everyone else.

A good tip is to ask the building security guard for going rates and LL ph numbers - they are very tuned into market.

Market is still tanking, me thinks another 30% downside from here given massive supply and subdued demand. 

As for the argument that LL have overheads, these overheads exist whether the place is rented or vacant - $omething is better than n0thing.

Oh and 75k will currently get you a full villa in many locations in dubai although higher running costs, i know thats not what you after but may be an option if family etc joining later.

Consider asking for the following:
When is the unit avail?
What is his best price?
What is his last price?
Will he accept 12 checks?
What charges are included?
What charges are not included?
What is the notice period?
Will full maintenance be provided including re-paint and servicing of AC?
Furnished?

and many more that others may be able to add. The listing agent will likely not know the *real* answer to any of these questions and will need to contact the LL, so you need to be patient. On many occasion the LL is out of country and the agent will just "make it up" to close the deal - ymmv.

Dubai is an awesome experience and you can have a great time out here. Just remember "it is what it is" and "your only here for a year or two" and you will have a blast. Oh and include vacation in your budget - this place is a hopskipjump from some amazing locations.

Kia Ora!


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## Tropicana (Apr 29, 2010)

I dont thing 30% drop will happen across the board...

DG and Intl city have really dropped, so have some places in JBR (1BD from 60k now, 2 months back they were never below 75k)

Quality places be they in JLT (Green lakes, madina), or in Marina will never drop as much as places like Manchester tower or the Diamonds


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## Onerahi27 (Nov 14, 2009)

titirangi said:


> JBR/Marina side if your budget permits.
> Else JLT and put up with poor access, construction and sand.
> International city is a disaster, if thats all your budget allows then don't come.
> If your work is downtown area then lots of new release around dubai mall, nice stuff too and cheaper than marina I hear.
> ...



Thanks this has been very useful!!!!


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