Dubai Home Rents Stabilize After 3 Years Of Constant Rises
The supply of new homes is catching up in some popular residential areas of Dubai. That's had an impact in slowing down rent increase. This trend is starting to show up more forcefully in recent leasing deals, and across communities and popular residential locations in Dubai. There are signs that they may be reaching a ceiling. One such indicator is the difference between listing (rental prices) and (actual) contracted rates, as recorded by the Dubai Land Department. According to the data, apartment and villa units are often renting at the lower end of the (asking) range, despite the fact that they are not advertised as such. In other words, landlords are being realistic enough about what they should reasonably be expecting. Some industry sources had been saying that further turbo-charged growth in rentals would have meant the property market overheating. Areas that have recorded ‘significant levels of new supply’ - Meydan (where the Azizi community Riviera is spreading out), the Arabian Ranches 3 and Al Furjan, had ‘nominal or no rental growth’, according to Asteco. Even where there was low availability of units to lease and limited tenant movement in locations such as Dubai Silicon Oasis, the Jumeirah Beach Residence towers, and The Greens and Views, there have been only ‘above-average increases’. Other industry sources also cite mid-market locations in the city also experiencing a slowdown in rental increases. More projects are to be handed over in areas such as Jumeirah Village Circle, Dubai South (and its Expo Village), which are opening up options for existing or new tenants to seek more wallet-friendly rentals for their next 12-month contracts.
Tags : supply new homes popular residential areas Dubai rents impact Dubai Land Department