Though it is not clear whether the property market in Dubai is on a decline or not, one thing is sure that rents of apartments are now favorable to the most of the tenant community.
During H1 2016, the overall residential rents in Dubai were recorded to have dropped by 4% to 6%.
Various real estate companies, brokers and agencies make use of different data sets and methodologies to analyse market trends – which is why estimated price changes and rates can vary from one source to another.
Phidar Advisory with the help of its team of professionals analyses the property market in Dubai. Its latest rental market review shows that various residential locations in Dubai continue to have gross apartment rents dropping by an average of 5.7% in June when compared to last years. The favorite locations include Palm Jumeirah, Jumeirah Lakes Towers, Discovery Gardens, Dubai Marina and International City.
According to the MD of Phidar Advisory, Jesse Downs, demand is weaker for homes that appeal to mid-high and high-income households. At the moment, it seems that job growth for this demographic is unusually weak.
This trend is anticipated to continue for the next 12 months if no new jobs are created in the region.
Similar stats have been unveiled by REIDIN’s general index for rents – average lease rates have slipped by 4% during the first half of 2016. Many industry analysts and leading real estate brokers use REIDIN as an authentic source to see the market trends.
Bayut.com, a property portal in its UAE market report has estimated the rental decline for the same period at 6%, with an average rent for two-bed and one-bed apartments dropping to Dh150,000 and Dh99,000 respectively.
Also, according to their report, the first half of 2016 has left tenants [in Dubai]with something to celebrate. With rents adjusting downwards compared to the same period last year, many housing options across Dubai have become much more affordable than they were in 2015.
Other the market analysts are of the view that Brexit might be one of the reasons behind why the property market in Dubai is taking longer to recover. Dubai residential market is expected to recover in early 2017 given that no major external shocks happen in H2 2016.
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