Cheap rents in Dubai af­fect rates in North­ern Emi­rates

The National - News - - BUSINESS - ALKESH SHARMA

Prop­erty rents sta­bilised in Aj­man and soft­ened in Shar­jah in the first nine months of the year, as lower prices in Dubai saw many ten­ants re­lo­cate from the North­ern Emi­rates, a new sur­vey by du­biz­zle Prop­erty found.

Re­duced rents in Dubai of­fered ten­ants, who may have pre­vi­ously lived in Shar­jah, “with new op­por­tu­ni­ties to move to, or even in­vest in, a prop­erty in Dubai,” said Matthew Gre­gory, di­rec­tor of du­biz­zle Prop­erty.

“This ul­ti­mately af­fects the de­mand for rental prop­erty in Shar­jah, hence [ad­versely] im­pact­ing the prices,” he added.

Shar­jah’s Al Nahda, Al Qasimia and Al Qasba ar­eas, the most pop­u­lar lo­ca­tions for one-bed­room apart­ments in the emi­rate, recorded a 7 to 10 per cent fall in rental prices in the first nine months. Two and three-bed­room apart­ments wit­nessed a sim­i­lar trend, with pop­u­lar ar­eas Al Nahda, Al Qasba and Al Ma­jaz ex­pe­ri­enc­ing an av­er­age price de­crease of be­tween 4 to 11 per cent.

Av­er­age prop­erty prices in Dubai have slumped in re­cent years as devel­op­ers fo­cused on smaller, more af­ford­able units and in­vestor con­cern grew about an over­sup­ply of units. Av­er­age apart­ment prices in Dubai dropped 16.5 per cent year-on-year dur­ing the third quar­ter of 2019, ac­cord­ing to Cavendish Maxwell’s lat­est UAE

Prop­erty Mar­ket re­port, while villa prices fell 15 per cent. Apart­ment rents also dropped by 15 per cent, while vil­las and town houses recorded a 12 per cent de­cline in rental val­ues.

How­ever, du­biz­zle said it was ex­pect­ing a rise in the North­ern Emi­rates’ rental mar­ket in the com­ing months.

“As the in­dus­try con­tin­ues on its jour­ney through the prop­erty cy­cle, we will see the mar­ket be­gin to sta­bilise in the near fu­ture,” said Mr Gre­gory.

In Abu Dhabi, rents con­tin­ued a down­ward tra­jec­tory for both apart­ments and vil­las and town houses, ac­cord­ing to Cavendish Maxwell.

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