Dubai – As rent rates continued to drop in some areas, the housing/property market in Dubai was favorable for both owners and renters in July, with some locations showing a downtrend.
Records showed that the cost of renting flats in various communities dropped by 2% last month compared to the same time in 2015, says a real estate portal with thousands of property listings.
On average, the annual rent for a studio apartment is estimated to be Dh57,000 in Dubai. The rate has dropped by 6% compared to the same period last year. However, the numbers are stable when compared to the average rent rate within the first two-quarters of 2016
The annual rent rate for a one-bedroom apartment costs Dh92,000 a year, which is a 7% decrease compared to the first half of this year.
“Overall, however, apartment rents were seen becoming more and more affordable, with a total downward adjustments in July of 2 per cent,” said Bayut in its latest analysis sent to Gulf News. Statistics provided by Property Portal showed a different story, as it recorded 5.6% for the average rental yield across all bed categories.
Ann Boothelo, senior product marketing manager for property at Dubizzle said “Rental prices are now in the phase of bottoming out [however] tenants still have the upper hand with more negotiating power,”. Her main emphasis in the bid to attract tenant was that landlords are offering reasonable prices by letting tenants pay with three- or four-cheques, to avoid having vacant properties.
“The residential market is currently at a cyclical trough, having softened about 15 per cent since its peak in mid-2014. Providing there are no major external shocks over the rest of the year, we expect the Dubai residential market to recover in early 2017,” said JLL in its latest report.