Retail rents in Dubai and Abu Dhabi have jumped in double digits in recent months on the back of strong demand and limited availability of quality stock.     During the first quarter of the year, rents in the UAE capital rose by 14.7% and in Dubai by 10.5%, according to CBRE Middle East.   Part of the demand is coming from several foreign retail brands looking to enter the local market, particularly Dubai, the real estate services firm noted. There is also a significant demand from the food and beverage sector.   “The supply-and-demand imbalance in both Abu Dhabi and Dubai continues to drive rental performance,” CBRE said.   “We are seeing an increase in the number of global and international retail brands looking to establish or…

Savills Egypt, the esteemed global real estate consultancy, organised the Savills Retail Connect forum to discuss the latest industry trends. The rise of experiential retail was a key focus, reflecting a worldwide trend towards more immersive experiences in brick-and-mortar stores.     The event highlighted the necessity of omnichannel retailing, advocating for a blend of digital and physical shopping platforms to ensure a cohesive consumer experience. This strategy is responsive to modern consumers who often conduct online research yet still appreciate the tactile benefits of in-store shopping.   A significant revelation at the event was the 24% year-on-year surge in rental costs throughout Greater Cairo. West Cairo experienced the steepest climb, with commercial…

Industry executives said the inflow of young professionals and smaller families is fuelling the demand for smaller houses while landlords also prefer such units as they are more affordable, easy to rent out and provide robust returns on investment.   Meanwhile, residents looking for larger units are moving to the outskirts of the city where they are still somewhat affordable. As reported by Khaleej Times earlier, people are increasingly opting for larger properties at lower price points on the outskirts owing to high rates in established Dubai communities.   Additionally, the size of new property units in Dubai are also smaller now -- by approximately 12.5 per cent -- than older ones even though prices have gone up substantially in the post-pandemic period.   The…

Dubai’s residential properties posted a double-digit growth in both sales prices and rents on the back of strong demand, according to the latest data.     In the year to March 2024, average prices surged by 20.7%, with villa rates surging by 22.1% and flats posting a 20.4% growth, CBRE Middle East reported on Wednesday.   The cost of apartments in Dubai stood at AED 1,486 per square foot as of March 2024, while villas cost around AED 1,776 per square foot.   Overall, the headline average sales rates are still marginally below the 2014 highs by 0.1%, although several premium neighbourhoods have surpassed their 2014 figures.   Rents across Dubai went up by an average of 21.2% in March 2024, surpassing the 20.4% increase registered a month…

Some landlords in Dubai are setting a minimum lease duration as the rental market is fast evolving with demand rising for short-term rentals.   Amidst rising rentals, there are both short-term tenants as well as long-term tenants, including those new residents who have just moved to the emirate in search of greener pastures.   According to Betterhomes’ first quarter data, rental prices across all communities witnessed a consistent upward trend, mainly attributed to factors like the growing presence of high net-worth individuals and the UAE’s removal from the FATF’s grey list, enhancing the emirate’s attractiveness as a destination for investment and residency.   Karun Luthra, vice president for global operations at Foremen Fiefdom, said…

Apartments in Dubai Investments Park, Discovery Gardens and Liwan offer the best rental returns of up to 11 per cent to property buyers in the affordable category, according to the latest analysis by Bayut.   Dubai Sports City, Dubai Silicon Oasis, and Motor City have emerged as highly appealing choices, offering up to 10 per cent return on investment (RoI) based on projected rental yields for apartments.   Bayut’s first-quarter analyst revealed that Green Community, Al Sufouh and Damac Hills gave rental returns of over eight per cent, surpassing benchmarks established by the majority of global markets.   All these areas of Dubai offer much higher rental yields than all the major cities such as London, New York, Hong Kong, Mumbai and other cities where rental…

Tenants are increasingly requesting landlords to pay rent via online bank transfers rather than cheques.   This facility is also offered by property owners to some of those new Dubai residents who have not yet obtained their chequebooks.   This means that online payments are increasingly replacing cheque payments, especially if the mutual trust between the two parties has grown over the period.   “Landlords are increasingly seeking higher prices. Tenants commonly request to pay via bank transfer rather than cheques, which appears logical once a relationship is established and there's trust without the need for physical cheques. In some cases, parties negotiate the number of payments or notice period to provide tenants with more flexibility if they plan to buy or…

  Abu Dhabi Residential Property Sales Price Index increased by 0.52 points, from 85.35 to 85.87, which represents an increase of 0.61% in March 2024. Prices also increased 7.53% y-o-y.   Dubai Residential Property Sales Price Index increased by 2.49 points, from 115.38 to 117.87, which represents an increase of 2.15% in March 2024. Prices also increased 20.71% y-o-y.   How did the real estate price and rent index move in Abu Dhabi and Dubai during March?   Abu Dhabi Residential Property Sales Price Index increased by 0.52 points, from 85.35 to 85.87, which represents an increase of 0.61% in March 2024. Prices also increased 7.53% y-o-y.   Dubai Residential Property Sales Price Index increased by 2.49 points, from 115.38 to 117.87, which represents an…

Dubai landlords still have the option to request a higher rental amount from the Real Estate Regulatory Authority (RERA) instead of using the most recent Rental Index update.   But as of this month, there is a new procedure for requesting a re-evaluation.   Landlords must now attach a judgment or court order when applying for the rent evaluation service as of April 1, 2024, according to Anisha Sagar, director of property management at Allsopp & Allsopp Group.   “This effectively reverses the trend in the last couple of years where a landlord has been able to pay a fee to the Land Department for rental valuations.   In March 2024, RERA revised its Rental Index, enabling landlords to raise rents in proportion to the rise in rental rates.   The…