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Any softening in Dubai’s apartment rents continues to be marginal, with the second quarter recording a decline of 2 per cent compared with the first, according to a new report from Asteco.
“The decrease was felt throughout the market and areas with a significant amount of completed new supply were the most affected,” said John Stevens, Managing Director, Asteco.
“The softening in Dubai’s residential rental market appeared earlier than we originally anticipated, offering tenants in the emirate an opportunity to recoup somewhat after several tough years of high rents.”
Then again, much of the softening that has happened to date has been at the premium end of the residential space, with properties on Shaikh Zayed Road (down 7 per cent), Palm (6 per cent) and Jumeirah Beach Residences (7 per cent).
“We even saw a 6 per cent decline for Palm Jumeirah, with the handover of the lower specification Palma Residences’ townhouses impacting rental rates due to their lower price band,” said Stevens.
But the more mid-market locations of IMPZ, Dubai Sports City and Dubai Silicon Oasis actually recorded higher rentals compared with 2014, of between 6-13 per cent, Asteco reports.
This despite the fact that more supply came through at these locations in the last 12-18 months… and continue to do so.
Clearly, the laws of supply do not apply in locations where demand remains at a peak.
Source: Manoj Nair, Associate Editor, gulfnews.com