With a great increase in property market supply, landlords who are still attending to mortgages cannot let their houses stay vacant for too long. This has made 2019 the best period to be a tenant in the UAE. The increasing market supply has caused landlords to decrease rent and be flexible with the prices, payment terms, rent-free periods and other sweeteners to woo tenants.
According to data by Fam Property experts, the most trusted source of property information in the UAE, the second half of 2018 saw the rents for advertised apartments fall by up to 9.3% in Green Community, 8.7% in JTL, and 7.5% in DIFC.
The data also indicates that the asked rents declined by the biggest margin in Al Furjan, Green Community and Culture Village apartments by 25.7%, 25.2%, and 22.9% respectively. Properties in Dubai Silicon Oasis only experienced a steady fall of just 0.6%.
The Fam Property report also shows that the rents for villas have also dropped by 22.2% over the past two years and by 11.3% over the past 12 months alone. This has led to more families relocating from apartments to villas where there are gardens and more space. The state of the market has changed from tenants striving to find suitable properties to having a pool of good properties to choose from.
The advertised rents also saw the biggest decline over the past six months in villas such as Dubai Silicon Oasis, Victory Heights, and DAMAC Hills by 8.3, 16.2, and 19.3% respectively. Despite these falls, properties in communities located centrally such as The Lakes, Arabian Ranches and Arabian Ranches 2 saw an increase in their advertised rent by 3.7, 2.2 and 1.5% respectively.
After the shifts in rents and advertised rents, International City has been identified as the cheapest area to rent property in Dubai, while City Walk has been identified as the most expensive place. City Walk requires a median advertised annual rent of AED 189,674 per annum whereas International City requires a median advertised rent of only AED 32,998 per year.
If you are a prospective property buyer or tenant in Dubai, this is the best time for you, with property landlords taking major measures to woo tenants. Take advantage of these enticing deals offered in one of the most luxurious cities in the world right now. Browse our website for the best deals and news regarding property in Dubai to stay up-to-date with the latest market trends.