Apartment Rents in Dubai are expected to see a decline of almost 3 to 4 per cent while villa rents might fall marginally by 1 to 2 per cent this year, according to a report by real estate firm Core Savillis.
According to an article by Gulf Business, Dubai’s apartment rents fell 0.3 per cent per month during the last six months but villa rents have remained the same.
The report said, “These figures are significant because even though the drop is minor, it represents a turning point where renters can breathe a sigh of relief as they are unlikely to see their rents shoot up as they have done over recent years.”
Core Savillis reported that rental rates have risen significantly over the last three years. The report said apartment rents in Dubai shot up by 17 per cent in 2012, 26 per cent in 2013 and 15 per cent in 2014. Meanwhile villa rental prices rose 18 per cent, 17 per cent and 9 per cent respectively in the last three years.
But the report noted that residential prices in Dubai will continue to see a decline until early or mid-2016.
The report further described the drop in prices as a "healthy and positive market adjustment" after the strong growth numbers which were posted in 2014.