Dubai rental fees see drastic changes
Rental rates in Dubai are currently undergoing vast changes, with some premises registering an increase in price and yet most see a drop in value.
Throughout a number of areas in Dubai, rents saw a continued fall during July. However, larger apartments, especially within densely populated areas, are still reporting increases of up to 17.5%.
For instance, one bedroom apartments in Bur Dubai, Downtown Dubai, Dubailand and Jumeirah Lakes Towers (JLT) are now set at more affordable prices when compared to the rates seen last year.
However, those looking for larger flats with more than one bedroom should expect to pay more. According to Bayut.com, the rental price of two bedroom apartments within these areas are currently increasing by more than 15%.
Bayut.com announced a statement which suggested that rental rates are currently undergoing a process of stabilization, largely encouraged by the “cooling measures” implemented by the UAE government. Bayut.com reported, “The market stabilization and the government’s cooling measures have no doubt induced a slowdown in the realty sector of Dubai, making prices normalize compared to inflationary and speculative gains in the preceding years.”
Haider Ali Khan, CEO of Bayut.com has also suggested that tenants are now preferential to properties that are more affordable. As a result, areas such as JLT and Bur Dubai have enhanced their popularity rankings due to their growing abundance of cheaper accommodation.
Khan illustrated, “Earlier, Downtown Dubai and Business Bay traditionally formed the list of most popular localities along with Dubai Marina. However, we have now noticed JLT and Bur Dubai generating more searches, driving their popularity up.”
“Although we can assume that the affordability of these areas has made them popular, there is no hard evidence to support people having actually moved out of areas higher up on [our] popularity index previously or that a shift actually occurred.”
Across Dubai in general, the rental rates for properties have decreased by an average of 2% during the first half of the year, compared to the same time last year. As property sales are on the decline, Asteco noted that the higher end of the market had taken the brunt of such stagnation.
Rental rates in Dubai are currently undergoing vast changes, with some premises registering an increase in price and yet most see a drop in value.
Throughout a number of areas in Dubai, rents saw a continued fall during July. However, larger apartments, especially within densely populated areas, are still reporting increases of up to 17.5%.
For instance, one bedroom apartments in Bur Dubai, Downtown Dubai, Dubailand and Jumeirah Lakes Towers (JLT) are now set at more affordable prices when compared to the rates seen last year.
However, those looking for larger flats with more than one bedroom should expect to pay more. According to Bayut.com, the rental price of two bedroom apartments within these areas are currently increasing by more than 15%.
Bayut.com announced a statement which suggested that rental rates are currently undergoing a process of stabilization, largely encouraged by the “cooling measures” implemented by the UAE government. Bayut.com reported, “The market stabilization and the government’s cooling measures have no doubt induced a slowdown in the realty sector of Dubai, making prices normalize compared to inflationary and speculative gains in the preceding years.”
Haider Ali Khan, CEO of Bayut.com has also suggested that tenants are now preferential to properties that are more affordable. As a result, areas such as JLT and Bur Dubai have enhanced their popularity rankings due to their growing abundance of cheaper accommodation.
Khan illustrated, “Earlier, Downtown Dubai and Business Bay traditionally formed the list of most popular localities along with Dubai Marina. However, we have now noticed JLT and Bur Dubai generating more searches, driving their popularity up.”
“Although we can assume that the affordability of these areas has made them popular, there is no hard evidence to support people having actually moved out of areas higher up on [our] popularity index previously or that a shift actually occurred.”
Across Dubai in general, the rental rates for properties have decreased by an average of 2% during the first half of the year, compared to the same time last year. As property sales are on the decline, Asteco noted that the higher end of the market had taken the brunt of such stagnation.