Apartment and villa rental rates in Dubai have recorded a quarterly decline of 4% and 3% respectively.
The declining pattern would further prevail due to an expected increase in the volume of additional supply and a sharp drop in demand due to the impact of COVID on employment.
The ongoing market challenges and employment uncertainty will result in residents either downsizing or seeking affordable accommodation, preferably larger units with better facilities to accommodate the WFH (Work-From-Home) norm.
The payment mode by debit/credit cards will gain popularity and property management companies would need to extend enhanced level of tenant management and maintenance services to retain tenants. In addition, flexible lease terms and no rental deposit requirements would become the trend.
Although apartment and villa rental rates recorded only marginal quarterly reductions of 1% and 4%, the majority of landlords offered flexible payments options and discounts to fetch high occupancy levels. These included rent-free periods (up to 2 months), multiple cheque payments (up to 12 cheques) and zero commission fees.
Rising vacancy rates and declining demand will further push down rental rates in 2020.
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Information Credits: Asteco