Dubai: Here’s where rents are dropping, rising the most

SourceKhaleej Times
SectorReal Estate

Apartment rentals in Dubai will continue to decline for the remainder of 2021 but some prime and up-and-coming communities are seeing an increase in rentals due to residents continuing to flock to high-end apartments following consistent decline of rents over the years. The Dubai market’s performance is currently clearly fragmented. Villa rents on average increased by 4.7 per cent, whereas average apartment rents have fallen by 10.3 per cent in the past 12 months to April 2021.

It is currently estimated that around 17 per cent of property units in Dubai are vacant, making the market highly tenant favourable. Despite an upswing in certain areas, HP Aengaar, CEO of Asteco, says landlords continue to offer incentives including discounts, flexible payment terms of up to 12 cheques, options to pay with debit and credit card and agency fee waivers to retain tenants. However, Aengaar said this could change if the demand continues to increase. Asteco foresees 30,000 apartments and 5,000 more...