• The most expensive villa yet sold in Dubai cost Dh302m ($82.2m). All photos Alpago Properties
    The most expensive villa yet sold in Dubai cost Dh302m ($82.2m). All photos Alpago Properties
  • Amenities include a home cinema, bowling alley, gym, hammam, sauna, infinity pool, jacuzzi, and game room.
    Amenities include a home cinema, bowling alley, gym, hammam, sauna, infinity pool, jacuzzi, and game room.
  • Construction of the villa is scheduled to be complete by the first quarter of 2023.
    Construction of the villa is scheduled to be complete by the first quarter of 2023.
  • Management from developer Nakheel attended a private event to mark the record sale. Photo: Alpago Properties
    Management from developer Nakheel attended a private event to mark the record sale. Photo: Alpago Properties

UAE

One-cheque rents on the rise as many Dubai tenants stay put to avoid rising costs

One in three people now pay an entire year's rent to their landlord up front

Patrick Ryan
Patrick Ryan

October 21, 2022

  • English
  • Arabic

Paying annual rent with one cheque is on the rise again in Dubai, according to a report.

And more tenants are deciding to stay in their current property, where there are rent controls in place, to avoid rising costs.

That was according to the Q3 2022 Market Report, from real estate company Betterhomes, based on figures released by the Dubai Land Department.

It found one-cheque payments rose by 8 per cent compared with last year.

With low supply and high demand, the power of negotiation currently lies in the landlord's hands and [they] can, therefore, push for single cheques.
Richard Waind,
Betterhomes

“With low supply and high demand, the power of negotiation currently lies in the landlord's hands and [they] can, therefore, push for single cheques,” said Richard Waind, group managing director at Betterhomes.

“In addition, higher rental prices across the market mean those who can afford it may opt for single cheques to negotiate a lower rental prices.”

Paying with one cheque is the most popular way to secure rent for the year, making up 32 per cent of transactions.

The next most common was four cheques, which represented 30 per cent of rentals, followed by two cheques (22 per cent), three cheques (9 per cent), five cheques (5 per cent) and 12 cheques (1 per cent).

Another property expert said tenants had to accept it was a landlord's market at the moment.

_______________________________

Areas with the lowest rent rises this year — in pictures

  • Even though there has been an increase in rent in Damac Hills 2 in 2022, it still offers affordable prices, with a three-bedroom townhouse going for Dh60,000 ($16,330). Rents for the same unit in the past two years were about Dh45,000. Pawan Singh / The National.
    Even though there has been an increase in rent in Damac Hills 2 in 2022, it still offers affordable prices, with a three-bedroom townhouse going for Dh60,000 ($16,330). Rents for the same unit in the past two years were about Dh45,000. Pawan Singh / The National.
  • Studio apartments at International City are priced at about Dh19,000, one-bedrooms start at Dh28,000 and two-bedrooms start at Dh40,000 and three-bedrooms are going for Dh68,000 to Dh85,000. Satish Kumar / The National
    Studio apartments at International City are priced at about Dh19,000, one-bedrooms start at Dh28,000 and two-bedrooms start at Dh40,000 and three-bedrooms are going for Dh68,000 to Dh85,000. Satish Kumar / The National
  • International City has long been known for affordable rental prices. Antonie Robertson / The National
    International City has long been known for affordable rental prices. Antonie Robertson / The National
  • Al Warsan Village in International City has seen a rise in tenants over the past couple of years. It has three-bedroom townhouses, with rents currently ranging from Dh80,000 to Dh90,000. Victor Besa / The National
    Al Warsan Village in International City has seen a rise in tenants over the past couple of years. It has three-bedroom townhouses, with rents currently ranging from Dh80,000 to Dh90,000. Victor Besa / The National
  • Even though there is still construction in the area, Dubai South offers attractive rents for those looking to live closer to the Expo 2020 site and Dubai World Central Airport, also called Al Maktoum International Airport. Studio apartments are as low as Dh20,000, while some two-bedroom flats are going for up to Dh55,000. Pawan Singh / The National
    Even though there is still construction in the area, Dubai South offers attractive rents for those looking to live closer to the Expo 2020 site and Dubai World Central Airport, also called Al Maktoum International Airport. Studio apartments are as low as Dh20,000, while some two-bedroom flats are going for up to Dh55,000. Pawan Singh / The National
  • A model of The Pulse beachfront project at Dubai South. Pawan Singh / The National.
    A model of The Pulse beachfront project at Dubai South. Pawan Singh / The National.

_______________________________

“Landlords are pretty much insisting on one cheque because the market is so competitive at the minute,” said Mario Volpi, sales and leasing manager at Engel & Volkers and a columnist for The National.

“That is becoming the norm. Properties where the landlord will accept multiple cheques can still be found but it is most likely they are existing contracts being renewed.

“Most landlords are looking for one cheque, or two at most, for new contracts or properties that are empty.”

Prices still on the rise

The report from Betterhomes said Dubai’s recent population growth continued to put pressure on today’s rental inventory and “we are seeing rapid price increases in the most popular areas, with occupancy across Dubai at a five-year high”.

While this represented good news for investors, it means tenants are having to look further afield for better value.

“Overall transiency in the rental market has dropped significantly as tenants look to stay put and renew, rather than face today’s prices,” read the report.

The area that had the biggest average increase in apartment rentals was Downtown Dubai, with the average cost of rent working out at about Dh155,000, representing a rise of 19 per cent from the previous year.

Dubai Hills had the highest rise when it came to renting townhouses or villas, with a rise of 31 per cent, with the average rent being valued at more than Dh247,500.

Huge rise in sales across Dubai

The report also showed there had been a significant rise in the number of property sales compared with this time last year.

Sales totalled about Dh52.4 billion in the first three quarters of the year, representing a rise of 61 per cent from the same period in 2021.

There were slightly under 22,390 transactions in Dubai during the third quarter.

Cheaper areas

The most sought after location for those looking for cheaper apartments to rent was Jumeirah Village Circle (JVC), according to a third-quarter report released by property portals Bayut and Dubizzle.

The average cost of renting a studio apartment there remains unchanged at Dh36,000.

One and two-bedroom flats average Dh51,000 and Dh72,000 in JVC, with asking rents increasing by up to 6 per cent.

Those seeking affordable villa rentals were most likely to look to Damac Hills 2, where prices have risen by up to 3 per cent for five-bedroom houses, which will set you back an average of Dh115,000.

Luxury rentals

  • APARTMENT PRICES BY CBRE: Jumeirah: Dh2,156 per square foot — up 0.2 per cent in September, up 3.4 per cent in August, up 0.1 per cent in July, up 1.8 per cent in June, up 3.6 per cent in May, up 3.5 per cent in April. The National
    APARTMENT PRICES BY CBRE: Jumeirah: Dh2,156 per square foot — up 0.2 per cent in September, up 3.4 per cent in August, up 0.1 per cent in July, up 1.8 per cent in June, up 3.6 per cent in May, up 3.5 per cent in April. The National
  • Downtown Dubai: Dh2,096 - down 0.3 per cent in September, up 1.5 per cent in August, up 1 per cent in July, up 0.3 per cent in June, up 0.5 per cent in May, up 0.7 per cent in April. Reuters
    Downtown Dubai: Dh2,096 - down 0.3 per cent in September, up 1.5 per cent in August, up 1 per cent in July, up 0.3 per cent in June, up 0.5 per cent in May, up 0.7 per cent in April. Reuters
  • The Palm Jumeirah: Dh2,071 per square foot — up 4.5 per cent in September, up 2.0 per cent in August, up 1.5 per cent in July, down 4.2 per cent in June, up 4.2 per cent in May, up 4 per cent in April. Antonie Robertson / The National
    The Palm Jumeirah: Dh2,071 per square foot — up 4.5 per cent in September, up 2.0 per cent in August, up 1.5 per cent in July, down 4.2 per cent in June, up 4.2 per cent in May, up 4 per cent in April. Antonie Robertson / The National
  • DIFC: Dh1,683 per square foot — down 3.0 per cent in September, up 3.1 per cent in August, up 0.3 per cent in July, down 0.5 per cent in June, up 2.5 per cent in May, up 1.2 per cent in April. Jeff Topping / The National
    DIFC: Dh1,683 per square foot — down 3.0 per cent in September, up 3.1 per cent in August, up 0.3 per cent in July, down 0.5 per cent in June, up 2.5 per cent in May, up 1.2 per cent in April. Jeff Topping / The National
  • Mohammed bin Rashid City: Dh1,600 per square foot — up 2.2 per cent in September, up 1.0 per cent in August, up 1.3 per cent in July, up 1.9 per cent in June, up 2.3 per cent in May, down 0.2 per cent in April. Satish Kumar / The National
    Mohammed bin Rashid City: Dh1,600 per square foot — up 2.2 per cent in September, up 1.0 per cent in August, up 1.3 per cent in July, up 1.9 per cent in June, up 2.3 per cent in May, down 0.2 per cent in April. Satish Kumar / The National
  • Dubai Hills: Dh1,621 per square foot — up 4.0 per cent in September, up 1.4 per cent in August, up 1.7 per cent in July, up 1.6 per cent, up 2.7 per cent in May, up 0.3 per cent in April. Photo: Emaar Malls Management
    Dubai Hills: Dh1,621 per square foot — up 4.0 per cent in September, up 1.4 per cent in August, up 1.7 per cent in July, up 1.6 per cent, up 2.7 per cent in May, up 0.3 per cent in April. Photo: Emaar Malls Management
  • Business Bay: Dh1,530 per square foot — up 1.5 per cent in September, up 2.6 per cent in August, down 1.4 per cent in July, down 2.2 per cent in June, up 1.3 per cent in May, up 1.7 per cent in April. Sarah Dea / The National
    Business Bay: Dh1,530 per square foot — up 1.5 per cent in September, up 2.6 per cent in August, down 1.4 per cent in July, down 2.2 per cent in June, up 1.3 per cent in May, up 1.7 per cent in April. Sarah Dea / The National
  • Jumeirah Beach Residence: Dh1,425 per square foot — up 1.4 per cent in September, up 0.4 per cent in August, down 0.8 per cent in July, down 2.8 per cent in June, down 1.0 per cent in May, down 2.2 per cent in April. Photo: LuxuryProperty.com
    Jumeirah Beach Residence: Dh1,425 per square foot — up 1.4 per cent in September, up 0.4 per cent in August, down 0.8 per cent in July, down 2.8 per cent in June, down 1.0 per cent in May, down 2.2 per cent in April. Photo: LuxuryProperty.com
  • Dubai Marina: Dh1,391 per square foot — down 2.0 per cent in August, up 2.3 per cent in July, up 1.8 per cent in June, down 0.3 per cent in May, down 0.7 per cent in April. Victor Besa / The National
    Dubai Marina: Dh1,391 per square foot — down 2.0 per cent in August, up 2.3 per cent in July, up 1.8 per cent in June, down 0.3 per cent in May, down 0.7 per cent in April. Victor Besa / The National
  • The Greens and The Views: Dh1,141 per square foot — flat in September, up 3.0 per cent in August, up 2.4 per cent in July, up 1.2 per cent in June, down 2.5 per cent in May, down 0.6 per cent in April. Sarah Dea / The National
    The Greens and The Views: Dh1,141 per square foot — flat in September, up 3.0 per cent in August, up 2.4 per cent in July, up 1.2 per cent in June, down 2.5 per cent in May, down 0.6 per cent in April. Sarah Dea / The National
  • Jumeirah Lakes Towers: Dh1,019 per square foot — up 0.6 per cent in September, down 0.9 per cent in August, up 1.7 per cent, down 0.9 per cent in June, up 3.1 per cent in May, down 1.1 per cent in April. Antonie Robertson / The National
    Jumeirah Lakes Towers: Dh1,019 per square foot — up 0.6 per cent in September, down 0.9 per cent in August, up 1.7 per cent, down 0.9 per cent in June, up 3.1 per cent in May, down 1.1 per cent in April. Antonie Robertson / The National
  • Damac Hills: Dh1,056 per square foot — up 1.3 per cent in September, up 1.9 per cent in August, up 2.1 per cent, up 0.4 per cent in June, up 2.1 per cent in May, down 0.7 per cent in April. Pawan Singh / The National
    Damac Hills: Dh1,056 per square foot — up 1.3 per cent in September, up 1.9 per cent in August, up 2.1 per cent, up 0.4 per cent in June, up 2.1 per cent in May, down 0.7 per cent in April. Pawan Singh / The National
  • Jumeirah Village Circle: Dh915 per square foot — up 0.7 per cent in September, down 0.8 per cent in August, up 0.5 per cent in July, up 1.2 per cent in June, up 0.4 per cent in May, up 0.1 per cent in April. Razan Alzayani / The National
    Jumeirah Village Circle: Dh915 per square foot — up 0.7 per cent in September, down 0.8 per cent in August, up 0.5 per cent in July, up 1.2 per cent in June, up 0.4 per cent in May, up 0.1 per cent in April. Razan Alzayani / The National
  • Town Square: Dh849 per square foot — up 0.5 per cent in September, down 0.9 per cent in August, up 0.9 per cent in July, down 1.9 per cent in June, up 0.4 per cent in May, down 1.9 per cent in April.
    Town Square: Dh849 per square foot — up 0.5 per cent in September, down 0.9 per cent in August, up 0.9 per cent in July, down 1.9 per cent in June, up 0.4 per cent in May, down 1.9 per cent in April.
  • Motor City: Dh658 per square foot — up 0.8 per cent in September, up 1.9 per cent in August, down 1.8 per cent in July, down 2.5 per cent in June, up 0.8 per cent in May, down 0.7 per cent in April.
    Motor City: Dh658 per square foot — up 0.8 per cent in September, up 1.9 per cent in August, down 1.8 per cent in July, down 2.5 per cent in June, up 0.8 per cent in May, down 0.7 per cent in April.
  • Dubai Silicon Oasis: Dh612 per square foot — up 0.2 per cent in September, down 0.3 per cent in August, up 1.8 per cent in July, up 3.6 per cent in June, down 2.9 per cent in May, down 0.7 per cent in April. Chris Whiteoak / The National
    Dubai Silicon Oasis: Dh612 per square foot — up 0.2 per cent in September, down 0.3 per cent in August, up 1.8 per cent in July, up 3.6 per cent in June, down 2.9 per cent in May, down 0.7 per cent in April. Chris Whiteoak / The National
  • Dubai Sports City: Dh619 per square foot — up 2.6 per cent per cent in September, down 1.0 per cent in August, up 0.5 per cent, up 3.0 per cent in June, down 3.9 per cent in May, down 1.1 per cent in April. Reem Mohammed / The National
    Dubai Sports City: Dh619 per square foot — up 2.6 per cent per cent in September, down 1.0 per cent in August, up 0.5 per cent, up 3.0 per cent in June, down 3.9 per cent in May, down 1.1 per cent in April. Reem Mohammed / The National
  • Discovery Gardens: Dh525 per square foot — up 1.7 per cent in September, up 0.9 per cent in August, down 0.8 per cent in July, down 1.8 per cent in June, up 0.3 per cent in May, down 2.2 per cent in April. Pawan Singh / The National
    Discovery Gardens: Dh525 per square foot — up 1.7 per cent in September, up 0.9 per cent in August, down 0.8 per cent in July, down 1.8 per cent in June, up 0.3 per cent in May, down 2.2 per cent in April. Pawan Singh / The National
  • International City: Dh460 per square foot — up 1.8 per cent in September, up 0.4 per cent in August, up 2 per cent in July, up 0.9 per cent in June, down 0.5 per cent in May, down 0.6 per cent in April. Antonie Robertson / The National
    International City: Dh460 per square foot — up 1.8 per cent in September, up 0.4 per cent in August, up 2 per cent in July, up 0.9 per cent in June, down 0.5 per cent in May, down 0.6 per cent in April. Antonie Robertson / The National

Dubai Marina is the most popular location for those seeking luxury apartments to rent, according to the report from Bayut and Dubizzle.

A one-bedroom flat there will set you back an average of Dh91,000 while two bedrooms will cost you Dh139,000 and a three-bedroom apartment will average Dh209,000.

The same report stated that Al Barsha was the top location for luxury rentals in Dubai.

A six-bedroom villa there will cost you an average of about Dh460,000.

Where to buy-to-let

Dubai Marina is also the most popular area to buy a luxury apartment in the city, according to Dubizzle and Bayut.

The average sales price per square foot for flats in the district has increased by more than 2 per cent to Dh1,532.

JVC is also the most popular location for buy-to-let apartments, with a rise of about 2 per cent per square foot to Dh891 in the third quarter.

Villa sales

Those buying luxury villas are most likely to turn their attention to Dubai Hills, where the cost of a luxury apartment has risen by 3.36 per cent to Dh1,660 per square foot.

Damac Hills 2 is also the most popular destination for those looking to buy a cheaper apartment, with the sale price per square foot working out at Dh636, a rise of slightly under 4 per cent.

FIXTURES

Fixtures for Round 15 (all times UAE)

Friday
Inter Milan v AS Roma (11.45pm)
Saturday
Atalanta v Verona (6pm)
Udinese v Napoli (9pm)
Lazio v Juventus (11.45pm)
Sunday
Lecce v Genoa (3.30pm)
Sassuolo v Cagliari (6pm)
SPAL v Brescia (6pm)
Torino v Fiorentina (6pm)
Sampdoria v Parma (9pm)
Bologna v AC Milan (11.45pm)

Gender pay parity on track in the UAE

The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.

"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."

Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.

"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.

As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general. 

While you're here
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COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EYango%20Deli%20Tech%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%0D%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3E2022%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ERetail%20SaaS%0D%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3ESelf%20funded%0D%3Cbr%3E%3C%2Fp%3E%0A
From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Killing of Qassem Suleimani
While you're here
MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

INFO

What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.

The years Ramadan fell in May

1987

1954

1921

1888

more from Janine di Giovanni
Match info:

Burnley 0

Manchester United 2
Lukaku (22', 44')

Red card: Marcus Rashford (Man United)

Man of the match: Romelu Lukaku (Manchester United)

PREMIER LEAGUE FIXTURES

Tuesday (UAE kick-off times)

Leicester City v Brighton (9pm)

Tottenham Hotspur v West Ham United (11.15pm)

Wednesday

Manchester United v Sheffield United (9pm)

Newcastle United v Aston Villa (9pm)

Norwich City v Everton (9pm)

Wolves v Bournemouth (9pm)

Liverpool v Crystal Palace (11.15pm)

Thursday

Burnley v Watford (9pm)

Southampton v Arsenal (9pm)

Chelsea v Manchester City (11.15pm)

Updated: October 21, 2022, 5:04 AM
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