Housing Costs Stable In Dubai

The precipitous drop in housing rentals in Dubai has come to halt. The KT-Asteco Rental Monitor shows that the average rents of apartments and villas registered no change from April to May. The steady month-on-month rents are probably pointing at a stable housing market going forward. The internal shift of population and flexible payment options have helped the market to hold these levels. People who were commuting from Sharjah and other northern emirates are moving to affordable residential locations closer to work in Dubai. The disparity in rents and quality of apartments between Abu Dhabi and Dubai is also helping the market to sustain the current prices. The increase in affordability and availability has allowed renters to choose a property that complies with their wish list such as a garden, sea view or a gym. There is healthy demand for reasonably priced villas in Jumeirah, Umm Suqeim and Springs, driven mainly by tenants currently living in apartments. Single expatriates, who were illegally sharing their accommodation, are also taking advantage of the market conditions to move into studios and one-bedroom apartments. The sharp correction in rents and subdued demand have made landlords more accommodative. Although the payment of annual rent in four to six installments is still the norm, there is a growing trend of accepting monthly payments. While some landlords are willing to negotiate below the market price if the rent is paid in one cheque, renters are not ready to part with their cash.