Apparently rent is about to go down in Dubai
If you’re finding it hard to cope with all the talks of VAT and the ever increasing rates of school fess and the general cost of living in Dubai, we have some good news for you. The cost of renting a house in Dubai is on a steady decline.
According to a report conducted by CBRE (the world's leading commercial property and real estate services adviser) the first quarter of 2017 has seen a one percent decline in the average cost of rent in Dubai.
CBRE believes that the small yet significant decline is due to the increase in supply and lack of demand. It also believes that since landlords are becoming more flexible with their rental rates, fewer tenants are looking to leave their current accommodations.
Speaking on the current real estate trend head of residential research at CBRE Middle East, Matthew Green, told Arabian Business that the number of off-plan launches have affected the traditional working of the real-estate industry.
“Amidst a flurry of off-plan launches, the competition to attract investors is rising, meaning developers are having to become more creative in order to sustain desired levels of sales velocity,” he said.
The drop in residential rent also applies to the secondary commercial market with rents dropping by one per cent in the first quarter of the year.
“Onshore building requirements have witnessed a slowdown, which has resulted in a softening of rentals for non-free zone buildings along the Sheikh Zayed Road and parts of Business Bay,” Green said.
The same, however, does not go for commercial rents in prime locations with the CBRE reporting that the rates have remained unchanged at AED1,920 (US$522) per square metre per annum.
Green believes that this is due to the constant demand for property in prime locations, particularly within free zone locations.