New tenants to pay more for smaller dwellings due to rising rents

The desire for larger flats and villas has increased as a result of Covid‘s impact on mobility. According to real estate industry insiders, residents in UAE who will be renting a space for the first time are basically now expected to pay more for smaller rooms due to an increase in rentals and a lack of villas.

The desire for larger flats and villas has increased as a result of the pandemic’s impact on mobility. Demand is steadily increasing even if there is a significant drop in Covid cases nowadays and restrictions have been relaxed. This means that new tenants joining the market would need to adapt due to the new circumstance of paying more for less.

Although rent will inevitably rise, those who have larger units are more likely to hold onto them, so there are more readily available smaller units, says an expert. It is anticipated that with rental prices going up daily, new tenants who enter the market must take into consideration that they are most likely to get less value with their money than those who are already present in the market and have a bigger unit.

Young homebuyers are choosing apartments over houses since annual leases make it easier for them to move every year.

Because they now realise that the changes they made during Covid-19 are possibly more cost-effective and sustainable many tenants still live in smaller apartments. The scarcity of villas and townhouses is continuing to drive up prices in the sector.

The demand for luxury-serviced houses and sea-facing flats is steadily rising. The expert added that although this trend is not as aggressive in apartments. On the other hand, the inexpensive property market has undergone a mild price increase.

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