Apartment and villa rental rates have dropped in the third quarter of 2016 due to rising demand for affordable properties according to a report by Asteco, a real estate consultancy firm.
In the villa market, rents ranged from Dh130,000 to Dh185,000 for a two-bedroom villa in Arabian Ranches, Dh125,000 to Dh160,000 for the same size in Jumeirah Village. In the Springs, a two-bedroom villa is priced between Dh130,000 and Dh145,000, for a three bedroom the cost varies from Dh165,000 and Dh220,000.
Villas in Jumeirah and Umm Suqeim recorded a significant year-on-year decline of 19 per cent and 12 per cent respectively, which was attributed to substantial new supply and an increasing number of budget-conscious tenants.
John Stevens, Managing Director, Asteco, said: "Although rental rates have remained relatively stable this quarter we are seeing a definite shift to more affordable areas such as Jumeirah Village and Dubai Sports City where rents are cheaper and an increasing number of amenities are coming on line as communities reach critical mass."
Apartment rental rates in Jumeirah Village ranged from Dh40,000 to Dh55,000 for a studio and from Dh125,000 to Dh165,000 for a three-bedroom unit. In mid to high end areas such as Jumeirah Lakes Towers studios ranged from Dh55,000 to Dh75,000 while three bedroom apartments were available from Dh120,000 to Dh180,000. The high to luxury end of the market with developments such as Downtown Dubai saw studios priced from Dh75,000 to Dh105,000 while three bedroom units varied from Dh175,000 and Dh300,000.
Stevens said: "Given that tenants have a wide range of options to choose from, they are more likely to negotiate with their landlord; and if their requirements are not met, they will vacate. Whilst this was noticeable in Jumeirah and Umm Suqeim, this trend has spread throughout the wider Dubai market.
"With more handovers expected in the next few months, we anticipate villa rental rates could come under further pressure."
|Media outlet||Gulf Property - Website|
|Country||United Arab Emirates|
|Cover Page||M C|