Rents dropping in some Dubai communities

Rents in some of the communities have declined but they're overall increasing at a slower pace.

- Waheed Abbas [e-mail]

Real estate industry executives say that the era of double-digit rent increases is behind us as the market has matured and seeing much more stable and gradual growth in rentals.

Rents and property prices have been on the rise after the pandemic due to strong demand from a growing population, increasing at almost a double-digit rate. Of late, rents have been plateauing after the four-year rally and industry insiders say they are, in fact, dropping in some areas where new supply has hit the market and also in older buildings following the launch of the new Smart Rental Index.

Lewis Allsopp, chairman at Allsopp & Allsopp, said there are signs that the emirate's rental market might be entering a period of adjustment.

He said Allsopp & Allsopp's data showed an eight per cent decrease in average rental prices across both apartments and villas/townhouses month on month.

"Specifically, apartment rentals have seen a nine per cent year-on-year drop. These figures suggest a shift in the market's previous upward trend which could create a more balanced environment for both landlords and tenants."