Luxury Houses In Dubai

Factors That Increase or Decrease Rental Value of Luxury Houses


Although one would always discuss increased value when making an investment in real estate, this industry has two sides of the coin. Sometimes the value increases, and sometimes it decreases very badly. The value has great impact on the sale price as well as on rental value but they are not always equal. The value given by a mathematical calculation takes into account many variables.


This has to be set by a professional appraiser and in most countries, the profession is regulated and requires a license. The prices can be set between owner and renter, although the ideal is to be based on the value of the property.


Factors Which Increase Rental Value of Luxury Houses


·         There are changes in the real estate market in which there is good demand for rental properties. If sales increase, the market becomes more solid which positively impacts housing rents.

·         Prices of properties start rising. When it happens in similar properties, the assessed rental value may rise.

·         There are new school buildings, shopping centers and other amenities. Having good and necessary facilities nearby has great impact on the rental value of homes and communities where they are located.

·         Improvements are well done. A planned renovation, providing it with quality materials that looks good will be very positive for an increase in property’s rental value.


Factors Which Decrease Rental Value of Luxury Houses


·         You are in a flood zone. It is important to know this before renting the property. It does not mean they are not rented or their value does not increase, but be aware of the costs and risks involved.

·         That surrounding of the house is given less care or neglected. The need for a cosmetic improvement does not impact greatly such as having to cut the grass or cleaning up street, but if those areas are in poor condition, abandoned or require further settlement could affect the value.

·         Homes or other recreational facilities are derelict. It is important that the house is in good condition and well maintained, since you are in a community where other houses keep the standard of proper maintenance. The same applies to the recreational facilities, it is not enough that they exist, to positively impact the rental value of the house, they have to be functional and in good condition.


It is important that you consider and are all well aware of all these factors so that you can negotiate to settle the luxury houses to rent and get a good bargain.


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