Dubai rental market reaches ‘all-time low’

UAE

Dubai rental market prices were at an all-time low in the third quarter of the year. According to the latest report on the performance of the UAE’s real estate market from JLL, rents in the emirate were down 12% year-on-year, surpassing the lowest point on the rental index in nearly a decade in 2010/11.

Property prices in the UAE are dropping faster than the rest of the world, and experts from the real estate group expect the sector to continue to be favorable to tenants.

Looking to the future, the report said, the Dubai rental market is expected to remain under pressure in the short term in light of several overall uncertainties, namely high unemployment rates and slowing population growth. This is in addition to weak investor sentiment at the global level.

As such, they expect developers to continue offering a range of incentives (fee waivers, discounts, and rent-to-own), as well as partnering with banks in offering reasonable mortgage financing options to attract new investors and end-users looking to benefit from lower prices.

The report revealed that the residential market in Abu Dhabi recorded some decline, with an average decline of 3.5% year-on-year.

In terms of sales prices, Dubai recorded a decrease of 9% in the third quarter of 2020 compared to the same period last year; While Abu Dhabi saw an average decrease of 3%.