The second quarter report by Asteco, the leading UAE property management company showed hardly any changes in the villa rental rates, although minor decline of 3percent in sales price of villas and apartments were noted.
A decline of 2percent on an average was recorded for apartment rentals during the second quarter, although a decline of 11percent and 4percent were noted in Discovery Gardens and International City, largely due to availability of surplus units in these areas. Nakheel recently released considerable number of apartment units in Discovery Gardens, which resulted in decline in rentals.
According to Asteco CEO, Elaine Jones, extension of property visa period from six months to three years is no-doubt a positive development which is likely to bring uniformity to the market. It will increase transparency and bring confidence into the market, thereby promoting investment.
The report said that the apartment rentals eased due to handovers, which caused deterioration in rentals. The rates at Dubai Marina and Jumeirah Lakes Towers fell by 3percent and 1percent respectively.
Another noteworthy trend mentioned in the report was that the tenants were seen migrating from double or triple bedroom apartments to townhouses and small villas. Once this trend continues, landlords will have to re-adjust their terms for larger apartments to continue attracting tenants.
The rental rates are expected to decrease slightly in the short-to-medium term based on delivery of new villa developments like Jumeirah Park, which will be partially handed over by the end of this year.
The report said that end-users are now driving into the Dubai market, as the selling prices have reduced and there are better financing options available to residents who are looking out for long-term living in Dubai.