Following unprecedented rainfall last month, property service fees in Dubai may see an uptick, according to local media reports.
Prathyusha Gurrapu, Director of Research and Consultancy at Cushman & Wakefield Core, stated, "In the aftermath of the deluge, the government has mandated all developers and property companies to undertake cleaning and repairs of residences to alleviate the burden on residents caused by the heavy rainfall. This is likely to result in short-term increases in property service fees and home insurance premiums."
Earlier, property developers in Dubai, including Emaar Properties, MAG, Damac Properties, Nakheel, Dubai Holding, Union Properties, and Dubai Investment Park, had offered free repair services to tenants whose homes were damaged by the downpour.
Gurrapu highlighted that Dubai's residential real estate market does not suffer from oversupply issues, as citywide rents have been on a continuous upward trajectory for the past 13 quarters, currently standing 72% higher than in the first quarter of 2020.
In the aftermath of the deluge, buyers and tenants considering purchasing or leasing properties will not only factor in price but also scrutinize the geographical location of the property.
With rental yields soaring, many tenants may opt to purchase properties as mortgage costs are expected to decrease in the coming quarters while rents continue to climb.
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