Tuesday, 12 January 2016

Rent Prices will Fall! But why? Find the Reason

From 2016 in Dubai could post a significant decline in Housing rents as numbers of new apartments and villas will be finished this year. The cost of renting in Dubai has been fore-casted to start falling in 2015, with analysts predicting a 5 % drop before the second half of the year. A more notable drop in rental rates could be fall in 2016 onwards as the big number of projects declared in 2013/1.

A contrast of rates between today and many years ago, however, would show that apartment rents have grow by 65 % since 2011, although they are still 25 % under than in 2008.Villa rates grower by nearly 55 % since their lowest in 2011.The slowdown in rents is increasing Dubai’s position as a more perfect place for budget-conscious tenants contrasted to Abu Dhabi.

All those worrying about the rental prices in Dubai, recent study carried out it are forecast that by rents in Dubai will greatly lower by this year. There are so many properties completing their construction in 2015, with an approximately 12,000 apartments and 2000 villas being freed by the end of 2015. New communities are presently under construction or being upgraded, which again grow the sum of sought after neighborhoods in the city, such as Al Furjan and Jumeirah Village Triangle.

More people have been going out of Dubai to save on rent, with numbers of people moving to low priced nearby emirates. As more people vacate Dubai to live elsewhere, the rental prices will steady as the demand decline.

People are not prepared to pay the prices! As people discern that the rental prices are not justified, they deny paying it. This sees families move to low-priced communities and out of the main desired areas, which will make the desire communities’ rents lower, as they will need to entice residents in.

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