Rents in Dubai have dropped, according to a new study, but the rates of the drops vary across Dubai suburbs – with the Palm Jumeirah seeing the steepest decline.
The research, released by Asteco real estate consultancy, found that in most areas, prices have been dropping 8% (the city average), but the Palm Jumeirah saw a decline in rental prices averaging around 14% in the year-on-year stats.
The hardest hit sector was the high-end real estate, due to an increase in supply.
Discovery Gardens was the only area with a notable increase in rent – of
Abu Dhabi also experienced drops of 8% in rentals
Landlords were also found to be more flexible on cheques and rental conditions due to the increase in supply of properties.
“A combination of new supply and tenants taking advantage of competitive rates has resulted in landlords offering more flexible terms either by increasing the number of cheques or, in some instances, offering rent free periods. This has been compounded by the addition of 3,600 apartments in Q1, which is expected to top 17,000 by the end of the year, thus putting further pressure on the rental market.”
John Stevens, Managing Director, Asteco