PROPERTY PRICES AND RENTS FALL IN DUBAI
Report charts drop in Dubai
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