- The first quarter saw fall in apartment and villa rentals in Dubai.
- This trend has impacted the bigger-size properties in Dubai whereas the smaller properties are still going steady,
This year tenants in Dubai are seeing a change of trend with landlords willing to lower rents due to market pressure. Last year also the real estate sector saw a drop in rent of residential property and this year, more housing units are expected to be ready further putting reducing the rents due to increased competition and cheaper options for tenants.
The reduced rents have allowed people to find better places and also save more money in the otherwise posh city known for its luxurious lifestyle. Interestingly, rents of apartments as well as villa segments both have come down in recent past, reported the Gulf News.
According to international residential property specialist, Chestertons, the average rents of apartments have dropped by 1 percent in the first quarter and some areas like Dubailand, Jumeirah Lakes Towers [JLT] and Remraam also experienced almost 4 percent fall in rents. In villa rentals also though the average drop of rent was 1 percent, but there are places where rents have seen 6 and 8 percent drop. However, Dubai International Financial Centre (DIFC) witnessed a hike of 4 percent and The Lakes in villa segment had a hike of about 6 percent.
This latest trend has impacted the bigger-size properties in Dubai whereas the smaller properties are still going steady, the report quoted general manager of Rocky Real Estate, Suraj Rajshekar as saying. The high-end properties are seeing declining demand and taking longer to get occupied.
The trend of falling rentals in not uniform throughout the city of Dubai and many tenants are still increasing their rents but tenants this year have choices to move out and find a similar or better accommodation for same or cheaper rates.
Last Updated 31, Mar 2018, 7:02 PM IST