The report also shows villa locations that have dropped in rental rate, with Jumeirah Village decreasing by 15 percent, Jumeirah Park by 13 percent and Arabian Ranches by 11 percent.
Asteco said that while on the whole the residential sector has witnessed only a minimal quarter-on-quarter decline at one percent, newly handed-over lower-end buildings in areas with significant supply potential have struggled with occupancy and caused rent prices to fall as a result.
John Stevens, managing director of Asteco, said that Dubai’s real estate market is becoming "increasingly fragmented", resulting in a considerable widening of the rental rate ranges.
Incentives such as multiple cheques, rent-free periods, and the absorption of utility, maintenance or agent fees are becoming the norm, he added.
Stevens said, “Despite the boost in luxury project launches, we believe developers will continue to focus on affordable and mid-market housing because there remains a substantial supply gap. Other factors bolstering the trend include the growing young population and the rising popularity of home ownership.”