Special Report: It’s a renter’s market in 2018
Dubai: Property pundits posit Dubai’s residential rental rates will go even lower in 2018 as cash-strapped tenants opt to relocate to cheaper new digs or haggle with existing landlords to trim rental costs.
With upwards of 20,000 new residential apartment units expected to arrive on the Dubai skyline in the new year, supply and demand pressures will push rents even lower, suggests statistical analysis by seasoned property consultancy firms.
The downward trend comes close on the heels of a 12 per cent drop in rental prices across Dubai this year.
While market professionals waited for a price correction in mid-2017 that never materialised, experts tell Gulf News that a growing number of landlords are now resigned to a protracted price slide evidenced by more tenants succeeding in securing monthly rent savings.
In its latest third quarter UAE Real Estate Report, property firm Asteco noted that “yearly changes were nominal with decreases of 4 per cent on average across all quality bands. Business Bay and Dubai Marina led the price declines with a drop of 8 per cent, followed by Dubai Sports City, International City and Jumeirah Village at 7 per centxt.
Dubai: Biggest rent declines
Dubai Marina: 19%
Downtown Dubai: 18%
Bur Dubai and Sports City: 16%
Jumeirah Village / Deira: 15%
Source: Asteco third quarter 2017 report
“Rental rates softened by 4 per centhe . Whilst this was less pronounced than projected, the annual change since Q3 2016 amounted to 12 per cent, which can be largely attributed to increased supply,” the firm stated.
“Despite increased government spending in infrastructure, hospitality and retail in the run-up to the Expo 2020, market sentiment remains low largely due to the bearish outlook in terms of oil price and global economic recovery,” the report stated.