Property

Dubai property rents expected to drop as 25,000 units complete

Downward pressure expected later in 2015 as new units enter market, says Bayut.com report

PHOTO: Dubai Marina was found to be the most sought-after locality for buying property in Dubai. Credit: Shutterstock

Dubai residential rents are expected to fall later in the year as fresh supply enters the market, despite rises in the first three months of 2015, a report has found.

According to UAE property website Bayut.com, rents for studio apartments registered a 15.29% rise in the first quarter, with more gradual increases in other categories. Rising rents across Dubai led to more tenant interest in relatively affordable locations like Bur Dubai and Jumeirah Lakes Towers.

The arrival of 25,000 residential units this year is however expected to lead to declines in rental prices unless there is a sharp rise in Dubai’s population, the report found.

Dubai Marina was found to be the most sought-after locality for buying property in Dubai, followed by Downtown Dubai and Jumeirah Lakes Towers (JLT).

Studio apartments saw a 3.64% increase in prices quarter-on-quarter, while two- and three-bedroom apartment prices increased 1.11% and 4.02% respectively, the Bayut.com research found.  

One-bedroom apartment prices, however, dipped 2.77% year-on-year. Four-bedroom apartments saw a much more significant decline, with prices decreasing 12.6% year-on-year.

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