Dubai’s real estate market is trending towards affordability as a host of pressures weigh on landlords and property developers.
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That’s according to the latest Dubai Real Estate Market Overview from JLL, anyway.
Whether or not that translates to cheaper rents remains to be seen, however. Two separate studies from yallacompare suggest that, actually, the majority of Dubai residents are paying the same as, if not more than, they were last year.
Still, here’s what JLL says: Apparently, “toughened economic conditions” mean that landlords are having to slash prices.
“With rents continuing to fall across the office and residential sectors, building owners and landlords are increasingly looking to incentivise in order to retain current tenants and have done so by setting more competitive prices and more attractive lease terms,” said Craig Plumb, Head of Research at JLL MENA.
Indeed, according to the report, rents declined across all types of housing during the first quarter of 2018.
But it’s not just rents that are getting cheaper – JLL said that developers are starting to look towards the affordable housing market, and are creating smaller properties with smaller price tags to meet market demands. New projects in Jumeirah Village Triangle (JVC) and Dubai South are all about cheaper accommodation as a result.
All of that said, some areas of Dubai are more resilient in terms of property pricing than others. Areas like Dubai Marina have sort of bottomed out, and have only recorded slight drops in rental rates. Whereas areas such as Mirdif and Jumeirah are still seeing rates decline – particularly when it comes to villas.