Dubai households expect rent rise on renewal: report
A majority of households in Dubai expect increases in their rent renewal prices, as rentals rose at the slowest pace in the last three months of 2015, according to Emirates NBD Dubai Real Estate Tracker.
Moreover, survey respondents noted market conditions were likely to favour buyers over the next 12 months, as construction volumes look set to remain strong as the “uncertain economic outlook has acted as a brake on investor demand.”
Around 66 per cent of households expect a rise in their property value during the next 12 months while only 14 per cent forecast a reduction.
“Our survey is consistent with recent data on residential sales and lettings prices in Dubai, which show prices continuing to ease. However, the momentum of price decline has moderated in December. The strong dollar and low oil prices are likely to remain headwinds for the real estate sector in 2016,” said Khatija Haque, Head of MENA Research at Emirates NBD.
On Sunday, the Dubai Land Department said total value of real estate transactions had jumped 22.5 per cent to Dh267 billion in 2015 compared to Dh218 billion in 2014.
“The reports issued by our experts assure that the Dubai market has reached a stage of wise maturity and rational dealing with the requirements by the various sides in the real estate market,” said Director-General Sultan Butti bin Merjen.