So it looks like rents aren’t going down after all. Research released by compareit4me.com suggests just ten percent of Dubai residents saw their property rental price decline over the past 12 months, while more than 40 percent saw rent actually increase.
The survey took in the perspectives of 300 residents living across a range of neighbourhoods, so in a city of more than 2.5 million, one could consider the scope of the research to perhaps be a bit narrow. However, it does fly directly in the face of popular opinion that the rental market has tanked over the past 12 months.
It could well be the case that tenants aren’t aware of the general consensus of a shrinking market, as compareit4me.com said that a number of respondents hadn’t considered negotiating rental rates down from the original asking price. Of course, landlords and agents will always look to secure the highest rates possible, but with market rates generally considered to be declining, there’s room to negotiate – depending on where you live.
Turns out, perhaps unsurprisingly, Jumeirah residents had the least joy with getting their rents down year-on-year. Not a single respondent in Jumeirah said they benefitted from a price reduction, and 60 percent saw an increase of up to ten percent. The same trend was observed in Bur Dubai. However, Palm Jumeirah and Jumeirah Lakes Towers were among the top-scoring locations for lower rental rates, with nearly 75 percent of respondents seeing a decrease of between five and ten percent year on year.
In fact, separate research recently done by PropertyFinder.ae suggests that while the rental cost per square foot of apartments on the Palm has spiked by nearly 80 percent in the first quarter of 2017, every other type of property has declined, and in some cases rapidly.
Average hotel or hotel apartment prices are down 42 percent between Q2 2016 and Q1 2017, while penthouses are down ten percent and villas are down more than 60 percent.
So while rents are holding fast in some communities, if you’re looking to find your next place, there are alternative options around the Palm Jumeirah and JLT which are starting to become more affordable than in recent times.