Fortune still favours those looking to rent a property in Dubai, according to Chestertons’ Q3 2018 Observer.
Average rents fell 4% in Q3 compared with Q2. This is a consequence of additional supply coming to the market, giving potential tenants more choice.
The biggest declines in apartment prices were seen in Discovery Gardens and DIFC at 7% and 6% respectively. Established communities like Dubai Motor City, The Greens and Dubai Silicon Oasis witnessed smaller declines of 2-3%.
In the villa market, the biggest rental declines were seen in Al Furjan at 6% with Palm Jumeriah and Jumeirah Islands at 5%.
In its report, Chestertons wrote: “We expect rental declines to continue over the coming quarters as a consequence of additional supply being added to the market. Generally, tenants are seeing better value for money and greater levels of availability in the mid-market sector and are either negotiating better rents with current landlords or moving to newly handed over developments with competitive pricing and a strong focus on community facilities.”
If you are looking to buy, there’s also good news. The downward price corrections witnessed in Q1 and Q2 of 2018 have continued throughout Q3, albeit at an increased pace. Average apartment and villa sales prices are down 6% from the previous quarter, which is one of the biggest quarterly price declines seen since 2014.
Around 10,000 units are expected to be delivered before the end of the year year end and 70,000 units before Expo 2020. This pipeline of new supply should help to keep sales and rental rates under control.