Logo
  • Order call
  • Call management

Property type
No. of bedrooms
Area
Show offers

When will Dubai rental prices start to fall?

14.09.2015
When will Dubai rental prices start to fall?
Real estate market experts from Better Homes traced the relation between sales and rentals in Dubai.

Despite the fact that decline in Dubai sales prices has become a major trend in recent months, rentals in the emirate kept growing fast. Better Homes has conducted a market study and found out, whether there is any connection between prices increase in one of these segments and prices decline in another.

While sale prices in Dubai were going down since the second quarter of 2014, rental prices kept increasing since then. And at the moment, according to the report, the average sale price per square foot of residential property in Dubai is about $353, while the average annual rental cost per square foot is about USD 24.

As for the future, analysts predict, that 20,000 housing units, which are about to enter the market in 2016, won’t have a significant impact on prices decline in rental sector, whereas sales sector is about to go even deeper below the current price levels.

“Sales prices are driven by a mix of rental yield, capital appreciation, payment plans, available financing, political risk, and so on; whereas rental prices are primarily driven by population growth and availability of properties, Ryan Mahoney, CEO of Better Homes explained.

“Renting is not a long-term investment in the way that purchasing is, so macro economics have less of an impact and it is primarily about the person’s immediate accommodation needs. As a result, rental rates do not necessarily track sales prices.”

Based on this, property experts, including analysts from Savills, Lookup and CBRE, predict that rentals in Dubai are unlikely to fall next year. Probably only a few fragmentary prices decline could take place in those areas, where massive new housing supply is expected, but even there the drop won’t be too sharp and significant.

Latest Availability
RENT
125,000 / year
Ref.No: OF1209
Office
1,655 ft2
76 AED/ft2
Latest property news
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back
SOGA1  SOGA2
Call management
SOGA1  SOGA2
Lease process (Rent out)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.
Real estate search.

Up to 5 days

Real estate search.

Selection of optimal options.

Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Property Selection

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Customer charges:
  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration
Additional services:

Property management

Sales Process
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

None

the management process
Contract of the owner and agency

1 hour

Contract of the owner and agency
Rendering of management services

1 year

Rendering of management services
Reporting

1 day

Reporting
Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Selection of optimal investment options

From 3 days

Selection of optimal investment options
Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Expenses of the investor:
  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration
Additional services:

Property management