Author : Suzanne
Courtesy: Arabian Business.com
JLL says the reduction in residential rentals has made Dubai more competitive and attractive for those working in the UAE.Residents moving to Dubai from locations such as Abu Dhabi and Sharjah are the most likely reason for a 7.6 percent rise in the emirate’s population last year, an expert from real estate consultancy Jones Lang LaSalle (JLL) has claimed.
“The major driver for this ‘Dubai Effect’ has been the reduction in residential rentals, which has resulted in Dubai becoming more competitive and therefore attractive for those working in the UAE,” JLL’s regional head of research Craig Plumb told Arabian Business on Tuesday.
“The other component of the ‘Dubai Effect’ is an increase in the number of households, as falling residential rentals are reducing the need for several households to share the same unit. The total demand for residential units is therefore increasing more rapidly than the overall population of Dubai.”
The JLL executive added that while the increase in demand was certainly good news for landlords, it was important to recognise that it is very dependent upon the level of rentals, with increased demand being driven largely by falling rental prices.
While Plumb welcomed the population growth data published by the Dubai Statistics Center on Monday, he called for a more detailed breakdown of the figures – such as information differentiating between locals and expats – which would allow for a greater level of analysis.
Jones Lang LaSalle has said it expects rentals to stabilise in some projects and locations in 2010, but that the overall level of residential rentals will decline further in 2010.
Source : Arabian Business.com
