Has your monthly apartment rate decreased by around 10% or more in the past twelve months? That’s the average rental decrease in the Dubai residential property space during this period.
This permits a tenant to lease a studio in Business Bay from forty thousand Dirhams
and at thirty- five thousand Dirhams and over if the location preference is for Dubai Marina.
According to the latest report from Asteco a single-bedroom unit in the Greens can be purchased for Dh50,000. Rents are down by eleven to twelve percent at all three locations in the twelve months to end September.
These rentals are based on prevailing and existing trends in these residential clusters. Variations can be expected on these depending on the building, its relative age, amenities, etc. Yet, today, it’s difficult to find any tenant who has not gained from a downward revision of his annual rental outgo. No neighborhood has been immune to the pull.
More handovers are preferred in residential hotspots which should lead to repeated pressure on rental terms decided between landlords and tenants. “This trend is likely to intensify owing to the sheer volume of supply expected for handover in short to medium term,” Asteco notes.
For the record, Dubai has seen a thirty-five percent decrease on the residential side since the second quarter of 2014. That was the time when rentals had zoomed to a six-year high after the 2009 downturn.