Renters in Dubai are making the most of a highly tenant-friendly environment as continuing low prices allow them to attain bigger, grander properties – as reported by leading brokerage Appello Real Estate.
This year, up to mid-October, the agency has seen a significant 34 percent of its existing rental clients upgrade to a bigger property.
“Every market environment sees definite winners and right now it’s the tenants who are sitting pretty,’ said Naval Vohra, CEO of Appello Real Estate. “Renting a spacious, modern apartment used to be merely an ambition for a large section of consumers in the UAE. But as the rental market changes, so too are the lifestyles and expectations of tenants. As leasing rates for flats and villas across the city have dropped year by year, residents are in an ever-stronger position to negotiate on a great deal.”
Vohra added that it isn’t just a case of making rental budgets go further in terms of property size, bedrooms or better location – it is also about getting to enjoy new, added benefits such as having a private garden, a swimming pool or high tech gym next door, all within budget.
Another parallel statistic of note from Appello Real Estate indicating an upbeat tenant attitude, is that 37 percent of its own clients in the same time period shifted into newer Dubai communities.
And this climate is ongoing as Dubai home rents and prices are set to continue falling both this year and in 2020 as more supply enters the market, making properties more affordable for both renters and buyers.
This is according to a recent report by Core Research which said that nearly 29,500 units will be delivered in the emirate this year, with around 16,500 units already delivered so far and an additional 13,000 units expected over the remainder of 2019.
The report revealed that the steepest drop in apartment rents were in Discovery Gardens with a 13 percent decrease, as well as in Dubailand with a 12 percent decline as competition intensifies in the affordable homes market.