As estimated the rental rates have continued to follow a downward pattern as both villas and apartments have faced a decline of 3% on average. Comparing figures, the average rental rates have declined by 11% and 9% subsequently.
Surprisingly, tenants are opting to move into lower and midrange units to save on rent expenses and bag the attractive incentives offered on lower units below. These incentives now also include lower agent fees, chiller fees, maintenance fees and DEWA bills inclusion. This has caused a compressed demand for premium apartments.
In the coming quarters of 2019, the average rental rates are estimated to decline even further.
Increased supply and lowering demand rates have led to the further decline of the average rental rates. The average apartment rental rates have declined by 2% and villa rates by 1%.
Due to the attractive incentives like multiple cheque payments and rent-free periods which are offered in low to mid end units, tenants have moved out of premium buildings and switched to more affordable options. This lead to a decline in rental rates for mid and high-end residential units.
Information Credits: Asteco