Dubai tenants opt for smaller flats within city amid record high rents, growing demand

Dubai tenants opt for smaller flats within city amid record high rents, growing demand

Published: Sun 19 May 2024, 2:27 PM Last updated: Sun 19 May 2024, 3:05 PM

Tenants in Dubai are increasingly choosing to relocate to smaller houses within the city as rents remain at a record high in many areas.

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.

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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 rising plot prices – which have jumped over 60 per cent in the past 12 months – have also prompted developers to introduce smaller units to maintain high margins.

Property prices and rents