Tuesday, May 11, 2010

Rents in UAE unlikely to rise in near future

Residents in UAE can heave a sigh of relief, as rents are unlikely to rise in near future, revealed industry sources

Rents in Dubai and Abu Dhabi, whether residential or commercial may not grow much, and if any, they may decline further, believes insiders within the industry.

Residential rents in Dubai will soften further, although not dramatically, during the next few years, said Ronald Hinchey, Partner at Cluttons Middle East.

This is due to the fact that tenants have the option to choose between several apartments, townhouses and villas, with more on the way, according to report by Colliers International. Rents in areas that are already lived-in may also not be spared, as new apartment buildings and communities will try to draw tenants by lowering the prices.

Rents already seem to be coming down, and landlords are not flexible on pricing, and cheques are on empty properties. The population in Dubai is also seeking a good deal to move to.

However, the uncertainty still remains if the landlords will pull their properties off market this summer, and it is yet to be known of whether the traditional post-summer boom would rebound this year.


Arcus Properties said...

It has become a challenge to protect the real estate market due to oversupply. It has also created a lot uncertainty. Now they just have to balance the projects and then maintain it.

Dubai Blog said...

It is true that there is an uncertain economic condition in Dubai real estate and market sentiments change everyday. However, the rents of the residential and commercial sector will increase in near future because the ratio population increased in the first quarter of 2010.