Tenants in Dubai may have enjoyed a year or so of falling rents, but according to the JLL 2016 Year in Review report, rents won’t be getting much lower.
Yep, the consultancy’s annual report on the state of real estate in the UAE suggests that we’re coming to the end of a cycle that saw Dubai rents going down. From here, the firm said, the only way is up.
However, the report also noted that Abu Dhabi was probably still in the middle of a decline, and suggested that rents in the capital could fall further still.
“The real estate market in the two largest emirates of Dubai and Abu Dhabi reflect their relative economic strengths,” said Craig Plumb, head of research at JLL MENA.
“The greater diversification of the Dubai economy and the earlier downturn of real estate prices from mid-2014 means the Dubai residential market is now poised closer to its cyclical trough, while prices may fall further in Abu Dhabi.”
Still, tenants may take solace in the fact that there’s plenty of supply being added to the residential market. According to JLL’s report, 14,600 residential units were added in 2016, and 31,000 are scheduled for completion in 2017. That should help keep prices down, or at least offer plenty more choice for Dubai residents.
What’s more, according to the latest Dubai rental index update, the majority of areas in the emirate are seeing either declining or stable rents.
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