The decline in rents in Dubai has revived summer demand for housing units before the start of the school season, as families were quick to replace their housing units with larger or closer units for work and study. Real estate workers estimated that rents have fallen between the beginning of the year and the beginning of September by between 10 and 15 percent, due to the large supply in the market, pointing out that the strong competition among developers increased the rate of decline, especially new developers. Haider Tuaima, head of real estate research at Real estate consultancy firm ValuStrat, said the summer rental movement was positive as it enabled tenants to change their property units. Tuaima said that rental prices fell 10.6 percent at the end of the second quarter of this year, compared with the prices of the same period last year, while at the same time about 8,500 new housing units entered the real estate market in Dubai during the first half of this year.
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He added that the new units put great pressure on prices and provide opportunities for tenants to change.
Tuaima said that the relocation of many Northern Emirates tenants near their premises in the emirate has contributed to the increasing demand for residential units. The majority of families have completed the move and change of real estate units.
Ramadan added that the market recorded a strong movement in the entry of a large number of families coming from other emirates, likely prices fell by 15 percent by the end of the year due to the increase in the number of new housing units that entered the market.
He pointed out that curbing the declines need several measures, the most important of which is to stop projects and postpone the units that will be delivered every year in order to stabilize prices at the current levels.
Raad Salman, General Manager of Green City Real Estate Brokerage, explained that the summer season was the rental season par excellence, as prices encouraged many families to move and replace rented units with larger or closer units.
He pointed out that the rental market is still recording the entry of many real estate units to the market, which puts pressure on prices.
Salman pointed out that the summer rent movement has pushed landlords to offer large discounts and concessions to tenants in order to maintain high occupancy rates, pointing out that the big reductions came especially from new developers, especially those relying heavily on banks to finance their real estate projects.
He pointed to record strong demand for Discovery Garden areas , International City and Dubai Silicon Oasis Village and Jumeirah Lakes Albra.haidar To’eima: 8,500 new housing units during the first half
Tariq Ramadan: Prices have encouraged tenants to move to Dubai.
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