Dubai: Increasing rents in Dubai drove tenants towards lower budget homes, resulting in this segment recording the biggest jump in rent across the market over the last six months.
A report by Cluttons, a real estate management and consultancy firm, showed that rents for lower budget homes spiked 12.7 per cent between the third quarter of 2012 and the first quarter of this year compared to the same period last year.
The low-budget segment saw the biggest increase in the rental market compared to 7.7 per cent rent growth for mid-range homes and 6.4 per cent increase in high-end home rents, the report said.
“Rising rental values are driving tenants towards lower budget options, which have struggled over the past two to three years, with even more secondary and tertiary locations enjoying renewed activity,” it said.
Villas
The rental market for villas saw a similar trend: lower-budget villas had the strongest performance with 19.6 per cent increase in rents, while mid-range villas registered an average rent rise of 6.2 per cent and the high-end segment grew 9.7 per cent.
Renewed confidence in the economy driven by tourism and business has pushed up rents and property sale prices further in Dubai, according to Cluttons.
Villa sale prices grew between 8.9 per cent to 20.2 per cent in the last six months. Apartment sales recorded price increases at 10 per cent to 14.6 per cent, the report showed.
