Dubai – Mubasher: Landlords is facing increasing pressures as budget conscious tenants tend to search for smaller units or relocate to cheaper communities to get better value for money.
Average apartment and villa sales prices in Dubai down by 4%, according to a statement by Asteco.
“Although rental rates have remained relatively stable this quarter we are seeing a definite shift to more affordable areas such as Jumeirah Village and Dubai Sports City,” according to Asteco’s managing director John Stevens.
Apartments in Jumeirah Village Circle and Dubai Sports City saw rates rise by 2% and 3% respectively, averaging 13% as demand for affordable housing growth.
The mid to high end segment also saw some movement, with Business Bay recording a 5% decline due to new supply being handed over and budget conscious tenants looking for alternatives.
Regarding villa sales, interest was for more affordable and mid-priced units, priced between AED 2 million to AED 5 million.
The commercial office sector in Dubai saw a 24% decline in transactions compared to Q2-16, although this was 12% higher than the corresponding period last year.
