Dubai's residential rents to remain stable in 2017
Dubai Marina retains the top spot for ‘most transacted’ area in Dubai with 1,442 transactions in 2016, followed by International City, Emirates Living, Jumeirah Lakes Towers, and Dubailand
Rental prices of residential units in Dubailand and Downtown Burj Khalifa have witnessed the steepest fall amongst other areas in Dubai in the last one year, of -13% and -9% respectively.
Other areas which saw rents drop were Jumeirah Village Circle (-8) followed by Motor City and Dubai Marina (-7), Al Furjan and Arabian Ranches (-6), and Meadows and Springs (-5). Victory Heights in Sports City witnessed a marginal drop in rents of -3% for 2016.
Chestertons MENA, a UK-Based real estate and property consultant revealed the findings.
Top five transacted areas in Dubai for 2016 are Dubai Marina with 1,442 transactions followed by International City (1,348), Emirates Living (831), Jumeirah Lakes Towers (733) and Dubailand with 699 transactions.
Dima Issak, head of research and advisory at Chestertons, said: “Dubai Marina continues to be quite a popular area for investors and [renters].”
Issak also noted that prices of residential units in International City have remained “reasonably stable with strong investment yields” of up to 10%.
She also described the market outlook for 2017, saying: “Residential unit prices during the first half of 2017 are expected to remain steady, a further downward pressure may occur in 2017. As far as supply is concerned the absorption rate will depend on completed and newly launched projects in 2017. It will be a good indicator how the demand and market sentiment is [going to be].”
Issak also said that there is pressure on prices of commercial spaces in Dubai, as companies are looking to consolidate businesses. In terms for industrial spaces, she said “demand for higher quality warehouses remains high”.
Office rentals may witness a correction due to weak occupier demand and profitability, while Grade A offices near established commute areas would see good occupancy and healthy demand, she added.