Dubai rental market drops
Dubai’s rental market is going against conventional wisdom at least in some locations.
The mid-market residential community accounted for more than 20 per cent of the 5,000 new homes that were completed and handed over in Dubai during the first six months of the year. That being the case, it should be a given that Jumeirah Village Circle rents would have dropped the most in what continues to be a tough leasing market. Rental rates there have declined only 9 per cent compared to up to 16 per cent in other areas in Dubai” in the first five months. Locations that have had a larger influx of new supply are not necessarily the areas displaying the steepest rental declines.
Most real estate sources agree that Dubai could end the year with between 20,000 to 25,000 new homes being added. It leaves existing landlords with little time to try and secure rental deals on their properties. Keep demanding a price higher than what the market is prepared to pay, and the risk increases of the property remaining vacant.