PROP­ERTY PRICES AND RENTS FALL IN DUBAI

Report charts drop in Dubai

7 Days in Dubai - - FRONT PAGE -

The cost of rent­ing and buy­ing prop­erty in Dubai have both fallen since last year, ac­cord­ing to a new report.

Jones Lang LaSalle’s first quar­ter study found rents in Jan­uary to March were 5 per cent lower than in the same pe­riod in 2015 - and that pur­chas­ing prices were down 10 per cent.

JLL said about 2,200 new res­i­den­tial prop­er­ties were com­pleted dur­ing the same pe­riod, with a sur­plus in the mar­ket typ­i­cally linked to lower rents, as land­lords are forced to cut their ask­ing prices.

While ten­ants will see the ben­e­fit if they are al­ready locked into their con­tract, the changes should have an af­fect when they come to re­new.

“We are wit­ness­ing a con­tin­u­ing de­cline in the sales and re­tail in­dexes for both the Dubai res­i­den­tial and hos­pi­tal­ity sec­tor,” said Craig Plumb, Head of Re­search at JLL.

“Although oc­cu­pancy rates are still con­sid­ered high, av­er­age rates con­tinue to drop.”

De­clan McNaughton, Man­ag­ing Di­rec­tor of Ch­ester­ton Mid­dle East, reck­ons the drop in num­bers could be even higher than those pro- jected by JLL.

“It looks like the num­ber of peo­ple com­ing to the ta­ble has soft­ened,” he said of rents. “But any­one com­ing to the ta­ble now could be in for a good deal”.

Com­ment­ing on the pur­chas­ing mar­ket, he said prices re­mained lower, and that it has been “three very tough months” for es­tate agents, but said there might be op­por­tu­ni­ties for buy­ers.

He added: “If you have ac­cess to 25 per cent of a prop­erty’s value you can put the rest on a mort­gage.

“You can also get into a deal to buy prop­erty now for about Dhs20,000 and then spread the rest of the pay­ment out.”

Peo­ple com­ing to the ta­ble now could be in for a good deal – De­clan McNaughton, Ch­ester­ton Mid­dle East

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