Asteco says rents have fallen by 2% in second quarter 2017
Apartment rental prices in Dubai are continuing to fall, with the pace of decline increasing in the second quarter over the first quarter 2017, according to Asteco.
The consultancy, in its latest report, said rents softened 2 percent quarter-on-quarter, with the quarterly fall “extending previous declines”. On an annual basis, rents were down by seven percent.
The emirate, it said, is expected to receive 17,700 new units this year compared to 8,750 unit last year, as a number of these units are will be offered on “discounted rates to encourage take-up”.
A 12-month period comparison revealed Downtown Dubai rents fell by six percent, while Jumeriah Beach Residence and the Greens both softened by four percent. Business Bay, Downtown Dubai, Deira and International City plunged by 14 percent, 12 percent, 11 percent and nine percent, respectively.
In the villa segment, rentals declined marginally in the second quarter across all communities except Mirdif and Al Barsha. Palm Jumeirah and Springs posted the biggest decline of four percent with the highest year-on-year drop registered in Springs (16 percent), Jumeirah (14 percent), Arabian Ranches (13 percent), Palm Jumeirah (13 percent), Al Barsha (12 percent), Mirdif (11 percent) and Umm Suqeim (10 percent).
“Market conditions have served to strengthen the negotiating position of many residential and commercial tenants. Many existing tenants have taken this opportunity to renegotiate their lease terms [on expiry of contracts], or when faced with intransigent landlords, opted to relocate in search of more attractive terms,” said John Stevens, Managing Director, Asteco.
Arabian Business
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