The rate of renting real estate in Dubai decreased by 21% in the third quarter of 2020, due to the recent wage contraction, which greatly affected the movement of real estate in Dubai. This led to the flexibility of tenants in lax rent prices, facilitated the renewal process, and reduced the annual rent increase.
Low level of real estate in Dubai
Rents in Dubai Sports City decreased by 20% in the third quarter of 2020, it is the highest percentage of decline in Dubai cities, followed by Dubailand, where they decreased by 18%, then Greens and The View decreased by 15%, and Jumeirah Lake Towers (14%). Among the villa complexes, the Reem-Mira and The Villa districts in Dubailand (21%) saw the largest declines year-on-year, followed by The Springs and Meadows (13%) and Jumeirah Village Circle (12%).
However, depending on the resilience of the owner and the financial capacity of the tenants, many of them have moved on to achieve substantial savings as rents have decreased significantly over the past 12 to 24 months, with a particularly sharp decline over the past few months. Tenants can now find newer building and sometimes larger units with similar or lower rents than they were previously paying.