UAE | Housing & Property
RAK residents feel heat as rents rise
People considering marriage here are facing problems finding apartments, because the supply scheme is currently facing a serious shortage.
- By Nasouh Nazzal, Staff Reporter
- Published: 23:36 October 27, 2008
Ras Al Khaimah: People considering marriage here are facing problems finding apartments, because the supply scheme is currently facing a serious shortage.
A one-bedroom apartment, if found, is currently being leased for a minimum of Dh45,000-Dh50,000, and a two-bedroom apartment ranges from Dh75,000-Dh80,000.
Expatriates are facing severe problems in finding housing, and either live with their families or plan to live in neighbouring emirates and commute to work daily.
Several buildings had been constructed but were never provided with electricity, resulting in supply falling short of demand.
"I cannot believe I am still in Ras Al Khaimah, which used to be an example of a place with low rents and spacious houses," said Abdul Rahman Dawood, a Palestinian national who has lived in Ras Al Khaimah for the past 35 years.
"We never imagined that Ras Al Khaimah would suffer such a housing shortage and high rents, which have forced several young people to avoid marriage," he added.
An average of Dh4,000-Dh6,000 monthly rent is too much for a young man who is establishing a household and starting family life, he said.
"It is impossible," he said.
He added that his son has been searching for a house in Ras Al Khaimah for months but without luck. Finally, his family and the family of the bride agreed to give the couple a room in the father's house. "There is no other way out - my son's engagement would have been broken," he said.
People say the real problem lies in the shortage in supply as there are apartments or houses offered for rent.
When people hear of an empty house, there is a rush, resulting in landlords getting a free hand in deciding the rent.
Ala'a Moursi, an Egyptian, and his fiancee have been searching for a suitable apartment for the past year, but they have not been lucky enough to find one at a reasonable rent. He said he has been thinking about moving to another emirate and commuting to Ras Al Khaimah.
The situation has been reversed: residents of other emirates previously lived with their families in Ras Al Khaimah and travelled daily to their jobs in other emirates.
Dawood said Ras Al Khaimah was a haven for residents in previous years. "Families of various nationalities were doing this to save money and live in more spacious houses," he said.
Real estate broker Riyad Al Bahri said many families have already returned to their original emirates and his own customers have also found cheaper rents in Ajman and Sharjah.
He added that the demand for apartments and houses has sharply surpassed supply and the landlords have been building new houses in the yards of their present houses.
"There are no more houses with gardens, as landlords have seized the gardens, built on them and constructed independent entrances, to rent them," he said, adding that this is why they have been spared the trouble of electricity connections.
Rents in Al Ma'amourah, Al Muaireed, Al Jolan, Al Zahra'a and many other areas haves doubled or tripled according to their sizes, he said, adding that a house that once rented for Dh20,000-Dh25,000 in Al Ma'amourah has jumped to Dh50,000-Dh60,000.
The Federal Electricity and Water Authority (Fewa) has repeatedly warned about the extra power loads that have been the direct reason for the power disconnections and failures being reported daily in many areas of the emirate.
How has the increase in rent affected your personal life? What is the biggest problem you face? Did you have to make any compromises to accomodate rent in your budget? What were they? Fill in the form bellow to send your comments.
Your comments
RAK is about to be transferred from a sleepy city to a luxury mega resort, there are a number of luxury developments under construction that would attract not only tourists but also businessmen and expatriates from rest of the Emirates who wishes to escape traffic and busy life to relax and enjoy their weekend. Prices for off plan properties are significantly cheaper than Dubai or Abu Dhabi and with current flat/house shortages a price hike would be more likely.
Hamed
Dubai,UAE
Posted: October 28, 2008, 11:53
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