Dubai Marina, Palm Jumeirah, Discovery Gardens, and Jumeirah Beach, Dubai’s key marketable areas, have seen a considerable descend in the apartments’ rent charges up to 30%. The interesting thing is that the villas’ rents are revealed to be constant. What do you understand the rationale and potential prospects behind this event?
Personally I think that the stable rates of villas are due to the reason that villas are rented by rich and well settled families and they tend to stay for long time in one place. While on other hand the descending rates of apartments are because that apartments are mainly occupied by bachelors and sometimes by a group of bachelors and they frequently change apartments.
This phenomena ultimately leads to stable rates of villas and unstable rates of apartments. I personally think that this would be the rationale behind event.
Hi,
I agree with Abdul Hakim and I want to add one more thing that due to recent economic crisis, most of the expatriates have either left Dubai or have migrated to neighboring states in search of better employment and as most of the apartments are rented by bachelor workers and expatriates , therefore, there is a significant decrease in demand of such apartments is constantly declining. Moreover, unplanned development and construction of such apartments have resulted in over supply of apartments and thus lowering of apartments' rent.
Nice news. What I am seeing is Dubai is encouraging the investors to divert back to Dubai properties. As most of the foreigners are approaching to Dubai for jobs, they prefer rental properties more as compared to buying a property in Dubai.
So, it’s a good sign and hopefully it will show some improvement in the foreign investments in Dubai.
(3 Replies)
