Investors in Dubai real estate continue to receive bad news as rental rates are sinking fast. While the exodus of laid off expatriates did not cause as much damage as was initially feared, weak demand means that the rental market is likely to fall further through the end of the year. For more on this story, see the following article from Property Wire.
Residential property rents in Dubai continued to plunge in July due to weaker demand and increased supply but some areas are bucking the trend, according to a new report.
The latest leasing guide from real estate consultants Landmark Advisory has found that rental rates are rising in some areas where tenants are upgrading to bigger properties.
Among the pockets seeing there increases are villas in Arabian Ranches, villas in Jumeirah Islands and also at the Greens. But overall rent rates are falling, the July leasing guide indicates.
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A lot depends on the property. For example, annual rents for two bedroom villas in Arabian Ranches fell up to AED20,000 over the last month but rents for three bedroom villas in the same area rose by AED10,000, with five bedroom villas jumping as much as AED 50,000. While studio apartments at Jumeirah Beach Residence saw rents climb by AED10,000.
Jesse Downs, director of research at Landmark Advisory said rents fell at larger apartments as tenants moved out of shared accommodation into single properties or studios.
Downs said it was too to suggest rents are bottoming out and they are likely to drop further in the emirate. It has been reported that property prices could fall by another 20% this year.
Despite weakened demand from job losses and expatriates returning home, relocations from Abu Dhabi and Sharjah were holding up rents in some areas, the report also found.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.