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A survey conducted by the analytical branch of the Emirates NBD revealed that 62% of Dubai's tenants expect rent increases upon their rental contracts renewal.
Of those surveyed by analysts only 7% of tenants are hoping to negotiate for some rent reduction upon the contract renewal. On the other hand, analysts have encouraging news for both the landlords and their tenants. For home owners the expected rental growth will meet their expectations of rental income of about 7-10% (depending on the area and property type), and for tenants good news are that rental increase recorded in the last three months of 2015 was the lowest and the slowest since April last year.
Average demand for apartment rentals in Dubai keeps growing too, Emirates NBD Dubai Real Estate Tracker reveals, while villas are not as popular for the first-time rent.
In general, the majority of survey respondents believe that in 2016 Dubai real estate market will favor buyers: it is likely that developers will make a number of interesting offers with attractive payment plans and guaranteed income.
The opinions of real estate agents surveyed by Emirates NBD have divided: 47% believe that prices won’t rise, while 32% believe that the Dubai real estate sector will see another upturn in property prices during 2016. Homeowners are, as usual, more optimistic: 66% of them expect their properties capital growth in 2016.
The truth is probably somewhere in the middle, according to Emirates NBD experts. Dubai house prices are unlikely to grow as fast as in 2014, but they certainly won’t go down like in 2015 giving the reason to assume the advent of stabilization and market maturity era in Dubai.
