Fall in Dubai rentals brings reality to the property market
Dubai residential rental levels in fell by three percent during the second quarter of 2015, according to the latest ADIB/MPM Properties Real Estate report.
Over supply was given as the main cause for the drop in rents. There’s been something of a building boom with 6,750 new residential units completed during the quarter, increasing overall Dubai residential stock to 479,000 units at the end of the quarter. Nevertheless the effect is expected to be temporary, with demand (and consequently rental levels) growing again as Expo 2020 approaches.
“The volume of new projects in the Dubai market means that properties will increasingly need to appeal to potential buyers’ sense of value,” said Paul Maisfield, CEO of MPM Properties, the real estate advisory subsidiary of Abu Dhabi Islamic Bank (ADIB). “That means a shift towards well managed, self-contained and mid-market properties, particularly close to the Expo 2020 site. We are also seeing a greater emphasis on buyer incentives and unique selling points, especially in the luxury segment and expect buyers to benefit from these trends.”