According to a report released on Sunday, the development of thousands of new residences in Dubai has resulted in a further drop in residential rents by an average of 3% as of June. The latest report by Abu Dhabi Islamic Bank and MPM properties suggests that Dubai’s residential stock surged to nearly half a million (479,000) villas and flats, as 6,750 new properties were added during the second quarter this year.
While the new report displays the studies proving a downtrend in Dubai's rents, it does not mean that all properties around the city have become cheaper compared to previous months. In fact, a report in Gulf News suggests that some of the more popular areas in Dubai among the middle class are seeing a rental increase!
However, the report comprised of results from the second quarter by Asteco shows that rates for apartments and villas across the Emirate fell by 2% during that time. Resulting in a significant decline in Villa registered rates of 5% year on year. The highest quarter-on-quarter declines were noted in properties along Shaikh Zayed Road (7%), Palm Jumeirah (6%) and Jumeirah Beach Residence (7%). While, apartments in IMPZ, Dubai Sports City and Dubai Silicon Oasis showed rental increases ranging between 6 and 13 per cent.
A report published by the same leading daily earlier this year had forecasted rents to decrease by a total of 10% this year alone!
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