Apartment, villa and office rental rates continue their downward trajectory and recorded quarterly declines 3%, 2%, and 3%, respectively. Lessees who have been paying below-market rents (as they are protected by the rental cap) could expect marginal rental increases in line with the law.
Dubai Land Department (DLD) data reveals that there has been an increase in transactional activity compared to the same period last year, due to the increase in options, affordability, payment options, etc.
Although people find moving stressful they do it regardless due to inflexible landlords. Whilst the softening market conditions are good news for many residents, it is important to note that securing reduced rents requires negotiating skills from the individual tenants and a willingness to move should the Landlord proof unyielding.
While normal private rental rate decays were negligible in the course of the last three months, experienced noteworthy decreases in 2018 recorded no change in Q3 2019.
Yearly decreases were increasingly articulated with 7% for apartments and 2% estates, especially inside the low and mid-quality section. Truth be told, a few ventures recorded a decrease of over 15%.
Yearly drops changed fundamentally and extended from 0% to -14%. Landlords accepted lower rents in order to maintain high occupancy. Overall, the continuous stream of new supply resulted in a rise in vacancy rates across all asset classes, but particularly within older properties.
Information Credits: Asteco