Slowdown of Dubai property rental growth only temporary
Property experts claim a slowdown of rental growth during the first half of 2008 will not last for long as demand for residential property in Dubai will continue to outstrip supply.
In recent figures released by Asteco, one of the UAE’s largest property services firms, rental growth has been a modest 22 per cent in the 12 months to June this year, but has been mostly stable since the turn of the year.
Andrew Chambers, the managing director of Asteco, said the slowdown in residential rents in Dubai, first observed at the start of the year, continued from April to June. “No significant residential rental increases were observed over the past three months,” he said.
Although Dubai’s rental rates have stabilised since January, the year-on-year rental rises in some areas of the emirate were still huge, the report indicated.
Property in Dubai’s Sheikh Zayed Road recorded the city’s highest annual rental growth at 51 per cent. Bur Dubai and Ghusais followed with 42 and 40 per cent respectively.
Despite its heavy traffic, Burj Dubai property was still popular with residents thanks to a variety of conveniences, transport options and entertainment. Occupancy rates were between 90 to 95 per cent.
Zuber Mohsan CEO for Dubai-based sandcastles-property.com warns that the slowdown of rental growth over the last few months will be short lived. “With more commercial space due to be completed within the next 12-18 months, new workers will be required by companies to fill this space, and these workers will need somewhere to live, therefore demand for property for rent in Dubai will increase - pushing up rental yields for investors.”
“For investors looking for the best returns on Dubai property they should look at the villa market,” recommended Mohsan. “Rental figures have gone up by 20 per cent between April and June 2008 and the current undersupply of villas in Dubai will continue for some time.”
Demand for quality villas for sale in Dubai is expected to be met within the next few years by new projects such as Dubai Lifestyle City, a new luxury development spreading across 3 billion sq ft. The project consists of Italian-style villas, condominiums, duplex and penthouses that are fully-furnished and maintained by JW Marriott. The amenities at Dubai Lifestyle City include a 5-star luxury hotel, sports academy with multi-sports venues, a 4-star sports hotel and a shopping centre.
- Contact Information
- Zuber Mohsan
- Sandcastles Dubai Property
- Contact via E-mail
This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.