Rental declines in Dubai to continue in 2018
As of January 2018, apartment rental prices continued to spiral downward by 7.43 per cent compared to the same period last year. And between the 2014 peak and last year, apartment rental rates declined by 16 per cent to 20 per cent, depending on the size of units.
“The high rate of handovers is putting downward pressure on rents, as supply, for now, is outpacing demand,” Lukman Hajje, chief commercial officer of Propertyfinder Group, told Gulf News.
Craig Plumb, head of research at JLL Middle East and North Africa (Mena), noted that there remains a large supply of apartments, as well as villas, due to enter the market this year. The influx of newly completed properties will consequently provide tenants more options, and therefore, put a pressure on landlords to lower their asking prices.
“While sale prices are expected to stabilise in Dubai residential market in 2018, rental levels are likely to decline further. This is partially due to the normal time lag between changes in the sale and rental sectors of the market, and partly due to the aggressive marketing of new launches that are targeting those that currently rent their accommodation,” Plumb said.
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News link: http://gulfnews.com/business/property/rental-declines-in-dubai-to-continue-this-year-experts-1.2179265