Dubai’s Palm Jumeirah is now becoming a cheaper place to live, with rents in decline, according to a report from real estate market tracker Asteco.
The report, which summarises the Q1 2017 property market in Dubai, claims prices on the Palm decreased seven percent quarter-on-quarter, and 14 percent year-on-year. Owing to tighter budgets, additional property supply and more competitive rates across the real estate market, Dubai residents have been able to successfully negotiate rental prices downwards.
It’s a trend that has been debated for some time, with various estimates suggesting property prices are slumping in the face of continued development and supply starting to outstrip demand. According to Asteco’s managing director, John Stevens, the rental market is becoming increasingly flexible, as a move away from lump sum payments becomes a trend worth keeping an eye on.
“A combination of new supply and tenants taking advantage of competitive rates has resulted in landlords offering more flexible terms either by increasing the number of cheques or, in some instances, offering rent-free periods,” he said. “This has been compounded by the addition of 3,600 apartments in Q1, which is expected to top 17,000 by the end of the year, thus putting future pressure on the rental market.”
An additional 4,000 villas are due to be completed and delivered by the end of 2017, adding further downward pressure on the market, although the continued growth in residences isn’t causing a significant devaluation in terms of sale price. Apartments on the Palm saw no change in selling price annually, despite a three percent decline in sales quarter-on-quarter.
If you’ve always hankered for a move on to the Palm, then now might be the time to start having a nose around for some bargains. But don’t be surprised if the prices for online listings hold strong - the majority of saving comes from hard negotiation.