Residential Rent Cost In Dubai May Fall In These Two Areas

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According to Cluttons property consultant that Residential rents in Dubai are reported no change during quarter one 2018. This condition led to improving the change annual rate from -7.7 to -3.1 percent at the end of 2017. From the annual rate of change, this is the first reliable quarter from residential rents in Dubai in the last two years 2016-2017. On the annual basis, the worst residential rental market was luxury apartments in some apartments in Dubai such as Dubai Marina, Downtown Dubai, the DIFC, and Palm Jumeirah. The rate is down about 4.8 percent on 2017.
The rent consultant predicts that Dubai resident rent will fall up to 5 to 7 percent in 2018. And the rate of handovers gains pace with similar slip in 2019. Besides, the major sales are likely taking place in international investors. They tend to return the units to the sales market before the completion. They also try to attempt to rent the units after the handover.
The renting the units sounds to be the best choice for those who are not able to sell their off-plan sales for a profit on the completion. However, there is a lack of the new supply from in more inexpensive areas like Discovery Gardens and International City and residential Dubai rents are likely stable in these communities. The Cluttons report mention that the affordable issues in the Dubai residential market to be overshadowed by the developers’ preference in assets books and high-end schemes of homes.
The end of March 2018, Dubai’s residential rent prices fell by Dh94 psf to 33.9 people under the quarter three in 2018. Besides, the Burj Khalifa is the weakest players in the area. The price fall by 11 percent in over one year, and leave them lower than the last market high in 20188 with 72.3 percent. However, International City and Discovery Gardens stand out as their stability in the market. Their values are 30 to 40 percent lower than the values in 2008. In addition, the rent price among the buyers will shore up the performance continuously of more inexpensive residential locations. Regarding Cluttons, the top market will see the value decline continuously in the next 12 months. The rent value may fall by up 5 to 7 percent in 2018. this situation will continue into 2019 which catalyzed by the supply pipeline before there is a possibility of stability in one year later (2019) when the supply pipeline begins to decrease.

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