Rejoice! Dubai rents aren’t getting any higher this year

Dubai UAE

If you’ve had tussles with your landlord in Dubai over rent increases, this piece of news should brighten your day – according to the latest Standard & Poor (S&P) report, Dubai residential prices and rents are expected to decline by 5% to 10% in 2017.

The consultancy said in its report last week that the Dubai real estate market is in for another tough year as the low price of oil and currency issues continue to hit home.

Indeed, despite a slight recovery in the oil price, S&P said that there was still “weakened investor sentiment”. What’s more, the firm said, the strong dollar was making Dubai an expensive place for visitors and prospective buyers, particularly from the UK, which is dealing with issues of a weak currency against the dollar, to which the UAE dirham is tied.

These issues were all taking effect last year, too. S&P said that 2016 saw residential prices in Dubai drop by 8% to 11%, while rents dropped by 6%.

“For 2017, we see no signs of market improvement for the UAE real estate sector, despite housing affordability improving from the current price environment. We expect residential prices and rents to fall by another 5% to 10% in Dubai in 2017,” said the report.

So if your landlord tries to increase your rent this year, maybe point him towards this report.

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