Dubai Rents Show Signs of Decline in Select Communities After Double-Digit Increases
Dubai's rental market is showing signs of stabilisation after years of sharp increases, driven by population growth and strong post-pandemic demand.
While rents remain high in prime areas, the overall pace of increase has slowed, with some communities even seeing modest declines.
Industry experts agree that the era of double-digit rent hikes is over. Lewis Allsopp, chairman of Allsopp & Allsopp, noted an 8% month-on-month decrease in average rental prices across apartments and villas. 'Apartment rentals alone dropped 9% year-on-year, signaling a shift toward a more balanced market,'
he said.
The launch of Dubai's Smart Rental Index, which promotes fair pricing, along with a steady stream of new residential handovers, is pushing landlords to rethink their strategies. Rupert Simmonds, director of leasing at Betterhomes, said villa communities like Nad Al Sheba and The Villa have seen rents fall 7–9% over the past year. 'Areas with high new supply, like Dubai Creek Harbour and MBR City, are likely to see further declines,'
he added.
Mid-tier communities such as Jumeirah Village Circle and Dubai Sports City are stabilising, while luxury areas like Palm Jumeirah and Downtown Dubai remain resilient due to limited availability and high demand from wealthy expats.
Landlords are facing growing pressure as more tenants shift toward homeownership. The Dubai Land Department reported a 30% drop in rental renewals month-on-month. 'This competition is prompting landlords to be more flexible to avoid vacancies,'
said Simmonds.
Joshua Nairn from Huspy Real Estate summed it up: 'The market has matured. While we may see fluctuations in areas with new supply, a city-wide decline in rents is unlikely given Dubai's strong fundamentals.'
News Source: Khaleej Times
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