Does property age affect rental prices?

When you sell any property, the age of it is one of the key factors that affect the rental rates. The same is applicable for luxury real estate in Dubai. The age of the property can have a notable impact on the rental rates. Through the age of the real estate property, it becomes easy to understand the condition of it, amenities and overall value of it. Let’s explore in depth how property age relates to the other aspects and causes impact on the rental rates.

Top aspects of the age of the property affecting the rental rates

Here are some of the features of the property that with age impact the rental rates.

Property Age and Location

The location of the project and the age of it are two of the significant aspect that affects the rental rate of the property. The luxury real estate in Dubai is also influenced by these.

Newer properties are of high prices as compared to the older projects. This is because modern amenities and services are in better condition. Besides, it did not lead to the conclusion that older properties are of no worth. The older property has its charm and prestigious place in the real estate market.

Location on the other hand, also affects the rental rates of the property. Properties that are located in convenient and central places are more desirable. Facilities like public transportation availability, educational institutions, health care facilities and more entertainment options decide the reputation of the place.

When it comes to making a decision, the question that will help you is whether you want to pay a high price or live in a prestigious place.

Property age and Repairs Cost

The next factor that will be analysed concerning the age is maintenance cost which affects the rental rates.

Even the luxury real estate property in Dubai will require frequent repairs once it gets old. The simple reason for the high demand for repair in older property is wear and tear that is usage.

Roof work, plumbing, HVAC units, and other facilities are among some of the common maintenance works required in older buildings as compared to newer apartments.

When the property gets sold, the landlord balances the maintenance cost with the rent leading to the higher rents.

Property Age and Tenant Choice

Property age as mentioned earlier is one of the primary aspects that affect the rental rate. But, another interesting aspect of it is that property age directly influences the preference made by the tenants.

For a young professional, a modern property may work with the world-class amenities being incorporated. But for the older person, the older property with more age may be the best that gets the traditional and homely feeling.

The developer needs to understand how the age of the property affects the buyer's preference and then set the rental rates.

What Defines the Property Age

Various factors determine the age of any luxury property in Dubai. Let’s also have a sneak peek at these factors.

• Building material is one of the various factors that affect the age of the property. The materials used in the older building become outdated leading to lower rental rates.
• The condition of the building is another aspect that is affected by age. Newer building requires a low cost of maintenance as they are in good condition, but the older building repair cost would be higher.
• The location also affects the age and rental cost. If the building is located in a region that is in harsh weather, the property will become old quickly as compared to the project that is located in a stable weather zone.
• Upgrades and renovations also define the age of the property. If the building is old but gets renovated and repaired on time, there is a high probability that it will not lose its charm in appearance or rental value.

Understanding what makes the property age is significant for the developer to set the price. If the developer is unable to understand the factors that are contributing to defining the age of the luxury property, will fail to attract the buyers.

Key Takeaways

Without a doubt property age is the major factor that defines the rental yield. However, age is not the only factor that is responsible for setting the rent of the residential property. Through the evaluation of age with other factors of amenities, location and maintenance cost, it has been found that each of these affects rental cost. For the developer of luxury real estate in Dubai, it is crucial to understand what defines age, this will facilitate the developers to set the rents and unleash the true potential of the property. This will also save the time and investment of the developer invested in marketing by setting accurate rent and attracting a targeted audience.