Dubai rents set to fall in 2017
It’s all about supply and demand when it comes to rental values, and it seems that 2017 will see a shift in favour of tenants. According to reports there are 20,000 new homes scheduled for completion next year, which could mean that rents fall by up to four percent over the next 12 months, according to Core Savilles.
Many of these new homes are in more affordable areas on the outskirts of Dubai such as Jumeirah Village Circle and Dubailand, however, the rent adjustment is subject to developments being completed on time.
It’s not all good news for tenants though. It seems that while areas on the outskirts may see a rent decline, those in central areas are likely to see rents stay flat throughout 2017. So will this mean that more people will move into more affordable areas?
Core Savills CEO David Godchaux said: “We continue to see rents in lease renewals to be market down or at least see no change. The trend of tenants moving out to outer areas, trading connectivity for larger units, exists, however, it is still slow as the cost offset doesn’t match up to the inconvenience and charges incurred.”
According to Core Savills’ report, we could start to see the sale value of properties start to increase slightly, which could make it a good time to invest. This is due to the completion of projects such as Dubai Water Canal and Dubai Parks & Resorts, as well as some exciting projects due to be finished ahead of Expo 2020 – Bluewaters Island and the extension at Jumeirah Beach.
Godchaux added: “Considering the current drivers and deterrents illustrated, we predict an uptick in Dubai sales prices in 2017 as a revival is clearly underway, however, an overall rise is expected to be very gradual.
So there you have it – if you’re looking to save money, it might be time for a move.