Dubai rents fall further on increased supply

Dubai: Housing rents in Dubai fell further during the first three months of the year as more residential units were delivered and property market conditions continued to soften, a leading real estate broker said.

Leasing rates dropped by 5 per cent, while house prices dipped by 10 per cent compared to the same period last year, according to JLL Middle East and North Africa.

Property analysts, however, said that the rental decline is moving at a slower pace as the market moves closer to the bottom of its cycle. A total of 2,200 new apartments, villas and town houses were added into the market during the first quarter of the year, taking the total residential supply to 458,500 units.

“The downturn in rental and sales indexes continued in Q1, but the rate of decline has reduced, suggesting the bottom of its cycle,” JLL said in its report.

ValuStrat said that more supply will be added in the next few months, citing that the total supply of residential apartments and villas to be completed this year could amount to 33,662 units.

Source