Dubai Property Rents To Fall 25% This Year?

Dubai rental properties are a curious thing. It has so far appeared that no matter if the Dubai real estate market is excelling or is in a period of decline, rents have still remained high throughout Dubai. One would at least expect a drop at some point during the property cycle right? Especially so given just how high rents have risen in Dubai these past few years. If you were to ask residents for their 2 biggest dislikes about Dubai, rent along with traffic would probably feature highly on almost everyone’s list, both for high placed executives and those in low paid labor jobs, rent has become a problem in Dubai. With many residents spending 50% and upwards of their incomes on rent it is hardly surprising to see why many residents have considered the feasibility of continuing in Dubai with such large outlays needed to rent a property. This was all great news for investors who decided buy to let Dubai property was the way forward, but residents certainly got the hard end of the bargain.

With landlords seemingly holding all the cards, those wanting to rent an apartment or villa were not only expected to pay out large sums of money to do so, but were often forced to pay all this money upfront in one go! However if a recent report by Dubai real estate agent Landmark Properties is anything to go by, things could be about to change for the better!  The study which was released this week predicts large drops in Dubai rental property prices in 2009, something which will no doubt be music to residents’ ears. But how large a drop are we talking about?  Well a 25% drop for Dubai apartment rental prices and villas should see rents drop around 23% too! This is all coming as a result of the current world economic problems and the knock on effect seen in the Dubai properties market.

This would not be the 1st time rents have been predicted to fall, but given all that is currently going on around Dubai, this time it might actually happen. A lot will depend if the lack of finance to purchase freehold real estate property drives people into the rental market or not, which of course would run counter to prices falling. Let us hope 2009 proves the report to be correct and we will try and keep you updated with Dubai property news!
 

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