With demand for property exceeding supply, rents for residential homes increased by an average of 40% in 2005, and by 30% in 2006, with landlords and developers able to demand double-digit increases across the UAE. These have given property buyers a yield of between 8 and 12% when renting their units - way above the average of approximately 3% in Europe, and consistently above the home finance rates regularly found in the UAE.

These stellar increases in rental rates are slowing. The Dubai Government introduced a rent-rise cap of 15% in 2006, lowered to 7% in 2007, though some unscrupulous landlords have surmounted this by refusing to renew lease
contracts, thus effectively forcing tenants to negotiate higher rents or leave.

As the supply of housing catches up with demographic pressures, the rental market is likely to slow in 2007, and possibly begin to fall in 2008, when even larger numbers of properties are due to come to market.

With market fluctuations on the horizon, there is no better time for investors thinking of buying to lease, or those wanting to lease for themselves, to contact Landmark Properties' Residential Leasing Division. With sophisticated forward planning tools at our disposal, we are able to second-guess the market in order to give you the best possible value for money.

There is even more reason to get in touch now. New methods of leasing are being introduced. With timeshare, guaranteed rental (rent-back) and genuine short-term leases now available, let us help you make the right choice.

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