UAE | Housing & Property
Prices 'will drop in two years'
Dr Imtiaz Malik from India is a landlord of five properties in Dubai, and has other properties in India and the UK. He said he is expecting rents to drop in two years. "With so many developers now on the market offering a lot of properties, rents will have to drop and I think this will happen in two years," said Dr Malik.
- By Emmanuelle Landais, Staff Reporter
- Published: 23:34 May 3, 2009
- "I think the 15 per cent cap was a very good idea, and stopped people from increasing the rents any higher." - Dr Imtiaz Malik, A landlord
- Image Credit:
Dubai: Dr Imtiaz Malik from India is a landlord of five properties in Dubai, and has other properties in India and the UK. He said he is expecting rents to drop in two years. "With so many developers now on the market offering a lot of properties, rents will have to drop and I think this will happen in two years," said Dr Malik.
Click here to see the rents in Dubai (pdf)
He rents out three villas and two flats which he bought two years ago. "I bought one house for Dh1.1 million two years back and now the value of the property has doubled, it is worth Dh2.2 million now," said Dr Malik.
"I think the 15 per cent cap was a very good idea, and stopped people from increasing the rents any higher. I rent my property for 10 per cent of the sale price and I have put up rents only by 15 per cent," he said.
Favourable conditions
"I'll admit it is very good to be a landlord in Dubai, buying and selling properties is all I do now but some landlords can be very greedy," he said. "Sometimes landlords have problems because they will rent to a single person who will furnish the room and rent it out to other people for higher prices," he said.
Abu Baker Al Amiri, a UAE national landlord, has five buildings in Dubai, seven in Sharjah and three in Ajman. He said the majority of his tenants on an average have been in his buildings for 10 to 15 years.
"I am in a stable position with tenants that have been staying in my buildings for 15 years, I don't have banks behind me either pushing for payment, so I didn't increase the rent for ten years," said Al Amiri.
He said, however, that real estate companies were constantly making offers to handle his property. "I have had the buildings evaluated by real estate [companies] and they told me the rent should go up to Dh75,000 or Dh80,000 from Dh35,000," said Al Amiri.
He said he had discussed with his tenants the rent hikes and had come to an agreement with them to raise rents to Dh75,000.
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