Increased transparency and improved regulation have provided favourable grounds for Dubai’s real estate market to mature throughout 2019, though the rental reductions have remained somewhat ordinary.
Apartments, villas and offices have observed a downward trend, recording average declines of 10%, 11% and 12% respectively.
However, these conditions have enabled the tenants to sizeably increase their quality of living, size of the house, and upgrade to a better location.
Apartment and villa rental rates continued their downward trajectory and recorded quarterly declines of 7% and 4%, respectively. The disparity between supply and demand has caused the prices to dwindle.
The lower to mid-tier is marked with an interesting development where rent-free periods and multiple cheque payments have started to become the norm.
The last quarter recorded the lowest rental rates since 2008, which is predicted to compel the landlords to offer flexible payment terms and discounted rates.
Information Credits: Asteco