If you rent an apartment in Dubai, we have good news. Average rent prices across the emirate are continuing to fall, and are down 7% on last year, according to a new report.
The report from Asteco, a real estate consultancy, found that, over the past year, apartment rents had plunged by 14% in Business Bay, and by 12% in Downtown Dubai. Apartments in Deira are now 11% cheaper to rent than they were last year, while International City rents are down 9%.
Even in more stable areas such as Jumeirah Beach Residence and The Greens, apartment rents have fallen – both of these areas are now, on average, 4% cheaper to rent in than they were last year.
According to Asteco, the plunge is down to the fact that plenty of new units are coming online this year. In all, Dubai is expected to open 17,700 new apartments in 2017, compared to 8,750 last year. A number of these units will be offered at “discounted rates to encourage take-up”, Asteco said, effecting prices across the rest of the market.
Indeed, with these conditions, tenants have found themselves in a much stronger position when it comes to scoring themselves a deal.
“Market conditions have served to strengthen the negotiating position of many residential and commercial tenants. Many existing tenants have taken this opportunity to renegotiate their lease terms [on expiry of contracts], or when faced with intransigent landlords, opted to relocate in search of more attractive terms,” explained John Stevens, Asteco’s managing director.
“This has resulted in an increased churn of tenants. The second half 2017 will see the delivery of a significant number of new units/ floor space and we anticipate that this new supply will amplify current trends.”
And it isn’t just apartments that are getting less expensive, either. Across Dubai, rental prices for villas are looking much better for tenants. Prices in the Springs are down 16% on last year, while rents in Jumeirah are down 14%. Rent prices in Arabian Ranches and Palm Jumeirah are down 13%, and Al Barsha, Mirdif, and Umm Suqeim are down 13%, 12% and 11% respectively.
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