Dubai – Rent Trends
Due to increasing supply in the city, the rental rates follow a steady but downward pattern for assets through 2018
Certain areas exceeded expectations, whereas certain didn’t. The average rental rates have declined 10% for apartments and 10% for villas. Incentives were still not taken off as rent-free periods and multiple cheque payments were still being granted.
Improving the regulatory terms will cause transparency and lead to the development of the Real Estate market.
Counteracting this improvement is the increased supply which will lead to the steady decline of the rental rates which is expected to continue throughout the year.
Abu Dhabi – Rent Trends
The trends for Abu Dhabi showed a downward pattern as observed in 2016 and 2017.
Due to bleak market conditions and growing supply there was an average villa and apartment rental decline of 9% and 10% respectively.
Growing supply numbers are estimated to put more pressure on rental rates. Some people are expected to make use of this opportunity to upgrade due to the lower costs, but on the other hand some are expected to downsize their living options to make more value for money.
Information credits: Asteco