Rents in the emirate dropped by 12% in the third quarter of 2020 compared to same period last year
Rental rates in Dubai hit an all-time low in the third quarter of the year.
According to JLL’s latest UAE Real Estate Market Performance report, rents in the emirate fell by 12 percent year-on-year, surpassing the lowest point on the rental index from almost a decade ago in 2010/11.
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Abu Dhabi values fell by 8.3% and Dubai by 6.6% over the past 12 months, according to the latest Knight Frank Global Residential Cities Index
And experts from the real estate outfit are expecting the sector to continue being a favourable one for tenants.
The report said: “Looking ahead, the residential market is expected to remain under pressure in the short-term in light of various macro uncertainties, namely high unemployment rates and a slowdown in population growth. This is in addition to subdued investor sentiment on a global level.
“As such, we expect developers to continue offering a range of incentives (fee waivers, discounts, rent-to-own), as well as partner with banks in offering reasonable home finance options to attract new investors and end-users looking to take advantage of the lower prices.”
The report revealed Abu Dhabi’s residential market also recorded some softening, with declines of 3.5 percent on average on an annual basis.
In terms of sales prices, Dubai registered a nine percent decline for Q3 2020 compared to the same period last year; while Abu Dhabi saw a three percent average drop.
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