Rents fall for first time after 3 years

We could finally be seeing an end to the unprecedented housing inflation that forced residents to downsize or move across emirates with average residential rents  dipping 1% this quarter. Dubai rents have started to fall for the first time in three years, reported The National.
After 10 consecutive quarters of growth, average residential rentals dipped by 1% this quarter, according to a report from the real estate company CBRE to be released today. This could bring an end to a period of unprecedented housing inflation and with 19,000 homes expected next year, landlords may struggle to raise rents.
“The dip in rentals has been attributed to an increase in new residential stock combined with weaker demand during the traditionally slow festive and holiday period,” said Matthew Green, the regional head of research and consultancy at CBRE. The biggest falls were in freehold areas such as Downtown Dubai and International Media Production Zone, where rents dropped by an average of 3%.
Other locations including the Palm Jumeirah, Business Bay, International City and Motor City recorded declines of about 2%.
However, rent declines were not recorded across the entire city, with Dubai Marina and The Greens showing stable rents during the period.
Average residential property prices have increased by 56% across Dubai since August 2012, according to JLL, the international property consultancy. Rents have surged by about 41% over the same period.

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