71 pct predicts Dubai rental downturn

Dubai rental market is overpriced, UAE Lists users agree. As you can see from our survey – 71.6% predicts rental prices will drop in Dubai. 15.5% predicts rental prices will go up and 12.9% that they will stay the same.

But dont just take our users word for it. Read this article about Dubai Rental Market

Dubai home rents may be weakening

After rising steadily for six years, residential rents in Dubai are showing signs of weakening as more properties come on the market and demand eases with the slowing economic growth. However, in Abu Dhabi brokers say rents are still increasing.

Dubai rates could see a correction of up to 30 per cent by the end of the first quarter next year for high-end properties in frontier developments, according to several agents.

Rents have already fallen in the high-end apartment and villa segment, with demand being hit by businesses tightening staff accommodation packages. However, demand for rented accommodation in the middle-income segment remains strong. “The correction has already started and we can see that in new leases in Jumeirah Beach Residences, Dubai Marina, Palm Jumeirah and Jumeirah Lake Towers,” said Nayir Hussein, the general manager at Zenath Real Estate.

UAE Lists comment: Well again just as we predicted 2 months ago. Rents are dropping – and they are dropping fast. As we wrote – First Property Investments go down, then massive layoffs – and then the rental market gets hit. Landlords need to secure good tenants and might have to offer PRICE REDUCTIONS to keep residents from moving out. That would be a Dubai first! Now we need to get Developers to stop increasing Maintenance fees by 100 to 400% (Damac up to 28-34 dhs pr. sqf!) Else it the rental market here will collapse completely.

Dubai home rents may be weakening - The National Newspaper

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Dubai Marina off-plan down 38%
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(Reuters) - Dubai-based Damac Properties on Friday denied a Turkish newspaper report that the emirate's ruler Sheikh Mohammed bin Rashid al-Maktoum has bought a 40 percent stake in the private developer.

Turkish daily Vatan earlier on Friday quoted an official at Debba, a subsidiary of Damac Properties in Turkey, as saying Dubai's ruler had bought 40 percent of the group and that Damac Properties plans to invest $6 billion in a Turkish coastal development of hotels, houses, shopping malls and marinas.

"Damac has not sold any shares to anyone," a Damac spokesman told Reuters in Dubai.

Dubai ruler buys stake in Turkey's Damac- paper | Industries | Financial Services & Real Estate | Reuters

Arabian Business predicts 70% drop

In an article today in Arabian Business, Rob Corder compares the stock market with the UAE and Dubai property market, and asks a viable question. What is the floor at which people will start to buy property again?

Robert Corder writes “The market will only restart when buyers feel the price of property has found some sort of floor, from which it will begin to rise. But what is that number?There is no reliable index of property prices that can be used as a guide but, if there were, I think the floor would be at 30 percent of peak prices. In other words, buyers will only return to the market when 70 percent has been wiped off the value of villas and apartments in the city.”

And he continues “Regrettably, my greatest fear is that 30 percent is optimistic. If buyers do not collectively agree that this is the floor they will stay out of the market until it falls even further”

But as Robert writes – UAE will come out of it strengthened and in a better position to service the people who live here.

Read the article. It is not fun – but an objective perspective towards the current crises.

Finding the floor - Real Estate - ArabianBusiness.com