Dubai property market 'sees shift to rentals'

TENANTS SOUGHT: More completed projects in Dubai are being marketed for rent rather than sales as the market shifts. (Getty Images)

Real estate brokers in Dubai say they have noticed a shift in the market towards rental rather than sales, according to an industry expert.

The organiser of a property exhibition taking place in the emirate until Saturday said more and more properties being completed are being marketed for rent rather than being sold on.

Property Shopper event director Pooja Rajani said: “Looking at the global financial situation, there are many concerns regarding UAE property.

"Speaking to brokers, we have noticed a shift in the market; now that more and more properties are being completed, property owners are looking to rent their properties to manage mortgage repayments."

Rajani's comments come just days after Riad Kamal, the chief executive of construction giant Arabtec Holding, told Arabian Business that more developers would become more reliant on income from property rents as the housing sales market continued to slow.

Kamal predicted there would be a “healthy correction” of “very unreasonable” accommodation rents in the UAE as more residential developments were completed.

“There is a huge demand for rented accommodation and that’s what is escalating the rent today,” he continued. “What we are going to see is a healthy correction as more accommodation becomes available, helping to reduce the rents which today are just very unreasonable."

Forty real estate agents and brokers are taking part in the second Property Shopper event at the Grand Hyatt Hotel in Dubai showing residential and commercial properties across the UAE with a key focus on rentals and the emerging end-user market.

Vincent Easton, sales director at Sherwoods Property Consultants, added: “Contrary to popular belief not all property prices are falling in Dubai. We see a very clear end-user market emerging both in terms of rental, investors for buy to let and owner occupiers in projects that are completed or close to handover."

He added: "The fundamentals and dynamics of both living and working in Dubai are still strong meaning the medium to long term outlook for real estate investment remain sound.”

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