A report from core indicates rent will continue to drop across Dubai in 2020. Not more than 30,000 brand new units will be ready by the end of the year.
Despite Dubai’s slight economic challenges these previous years, residents will save a little more compared today as rents are expected to fall in the coming year. One of the few reasons of this drop down is mainly because of the supply and demand.
The average annual rent in Dubai fall by 9.2 percent in the first three quarters of 2019 compared to 8.4 percent in 2018 and 9.1 percent in 2017. Moreover, apartments recorded a 9.4 percent year-on-year decline in rents and villa rates dropped by 8.8 percent this year, according to the latest data released by ValuStrat.
A similar down trend is expected by 2020 as Dubai-rent fell approximately 27 percent in the last three years.
Haider Tuaima, head of real estate research at ValuStrat, said “The general decline in annual rents is expected to broadly continue for many areas, with more sharpened drops in areas with significant new supply pipelines. We have no reason to believe that rents would increase in 2020.”
Lowering rent was also reflected in some areas like Discovery Gardens, which declined by 13 percent and Dubai Land by 12 percent, as supply increases and competition accentuate.
According to ValuStrat, Dubai Sports City, Discovery Gardens, Jumeirah Lake Towers, Dubai Marina and Dubai Production City are the locations where rent prices dropped during the first three quarters of the year.