Rental Declines in Dubai Limited to Certain Residential Areas

Monday, 29th August 2016

Dubai rentals have declined in selective and upscale neighborhoods, but were higher in other places in the city, while units in mid-market residential locations stabilized in the last three quarters, according to a report by Reiden-GCP , reported Gulf News.

Residential rentals in locations such as Downtown, Jumeriah, and Al Wasl neighborhoods and Dubai Marina are down by a wider margin than locations in Sports City, Discovery Gardens, Karama, Bur Dubai, Al Ghusais, and Al Rashidiya.

The availability of new supply at the premium end tends to encourage tenants to leave their landlords and head to other properties that meet their demands.

Dubai remains well supplied at the top-end, which makes it difficult for rents to increase; however, apartment values in Dubai Sports City seem to have made the fastest recovery, despite increase in new supply, according to the Reidin-GCP report. The report also stated that values are 3% higher since 2014 and 2% higher in International City.

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