A positive side effect of the economic doom and gloom is that housing rents have started to drop in Dubai.
Prime areas like Dubai Marina, Plam Jumera etc have seen 10-15 percent decrease in rental value of the apartments and villas. Last week I surveyed Discovery Gardens, a project by Nakheel near Ibn Batoota Mall where one bedroom apartment was renting at hundred thousand dirhams per annum three months ago. I was able to negotiate the same apartment down to seventy five thousand dirhams. That’s a decrease of twenty five percent in just three months.
Without a doubt, it’s great news for residents of Dubai who were frustrated by high cost of living. It also makes prime properties within the reach of wider group of people, which were limited to only a top earning categories few months ago.
Let’s see how much the rents will go down further this year, before people living in Sharjah start rushing in.
in my opinion the rates are down temporarily and hence would be a good time to sign long term rental contracts in any nice locality.
Mohamed Ali Alabbar, Chairman of Dubai’s Financial Advisory Council and Emaar Properties, believes the fall in property prices in the emirate will average 20 per cent. He said the Dubai Government was handling the real estate situation by studying projects that would be can celled or postponed or were continuing and would take appropriate action.
In an interview with Al Khaleej daily, he stressed that important decisions had been taken by the authorities to inject liquidity, guarantee deposits and increase Dubai budget to ensure the completion of all infrastructure projects.
Dubai Properties