Dubai: Rental markets are continuing to move from an owners’ to a tenants’ market with tenants enjoying more room to bargain as prices continue to fall.
As the supply in the residential sector nears its peak, rentals continued to decline in the second quarter of this year, particularly for luxury and high-end villas and apartments.
“Rents have fallen the most in the upmarket areas such as Downtown and Marina. There’s been a bit of movement of people shopping around for a good price as they look to save money,” Craig Plumb, head of research for the MENA region at Jones Lang Lasalle, told Gulf News.
According to Jones Lang Lasalle’s recent report, average apartment rents saw a year-on-year decrease of 10 per cent and 4 per cent quarter on quarter with the greatest decline in the high-end sector.
Average villa rents year on year fell about 23 per cent and 11 per cent quarter on quarter with the greatest decline also seen in the high- end sector.
Attractive terms
“The continued rental decline is attached to the overall economic situation. The amount people are willing to pay for rent is directly connected to their jobs and salaries. People are getting what they can afford,” Laura Martoramo, CEO of Leo Sterling, told Gulf News.
According to Martoramo, landlords are continuing to offer more attractive terms such as payment by more cheques to attract customers. Another trend is the shift of residents from Sharjah to affordable housing in Dubai.[Read More]
