Rents are set to soften this year and part of the reason is the addition to supply in the market, Emirates 24/7 reported.
“A further 12,000 apartments will be added to the city’s existing inventory in 2015 as well as over 2,000 villas. This is good news for tenants across the emirate, and a more tempered rental environment is especially welcome when you consider that since 2011 apartment rents have increased by 65% and villas by 55%,” says John Stevens, managing director, Asteco.
Rentals still remain 25% lower than 2008 though lease rates did rise 6%, on average, in 2014 compared to 2013.
The report, however, warns that any further increase in rents will make many areas “unaffordable to their target market leading to decreased demand and tenant outflow”.