Dubai residents worried about rising property prices
Eighty six per cent believe rates will continue to increase.
December 8, 2013 4:12 by Muhammad Aldalou
Property prices in Dubai have been on the rise over the past 12 months and Dubai residents are concerned that, if rents continue to surge, the majority of them will be forced to relocate to cheaper areas in the Emirate or abroad.
According to a new survey by research firm YouGov, 28 per cent of respondents in Dubai said that if rents continue to increase over the next 12 months, they will move out of the UAE, while 15 per cent said they would be forced to relocate to another emirate.
Sixty five per cent of participants revealed that their rent has increased over the past 12 months and 35 per cent said that the hike was between five per cent to nine per cent. When asked how property prices in Dubai have changed over the past year, 92 per cent said that they have increased.
While real estate experts, reports and giant billboards have continued to reassure the public that the resurgence in Dubai’s real estate market is real and sustainable, a whopping 84 per cent of residents believe that the property market will go through another boom-and-bust cycle.
According to a report on Friday, December 6, by Knight Frank, house prices in Dubai rose by 28.5 per cent in the first nine months of the year – the biggest increase in any of the global markets that the real estate agent tracks.
However, the report also found that prices in the emirate were showing some signs of cooling down, rising by 4.5 per cent in the third quarter of the year, after a 7.3 per cent rise over the previous three months.
Residents, however, are not convinced. When asked whether they believed that property prices will continue to increase in the next 12 months, 86 per cent of residents surveyed said yes. In fact, 82 per cent said that they wouldn’t consider buying property in Dubai if the prices continue to increase, while 13 said that they would and five per cent remained unsure.
It’s clear that residents –of which 83 per cent rent rather than own property – are worried about being priced out and losing more of their disposable income. Eighty seven per cent said that they believed that increasing property prices will have a negative impact on their standard of living.