compareit4me.com survey flies in face of reports that lease rates are falling across the city
The vast majority of Dubai tenants are either paying the same as or more than they were paying on rent last year despite reports that rents are falling in the emirate, according to a new survey.
The poll published by compareit4me.com, the Middle East comparison site, showed that just 10.3 percent of tenants in the emirate saw their residential rental rates decrease over the past year.
The survey, which polled more than 300 people living across a range of neighbourhoods in Dubai, also showed that a large number of respondents (42.6 percent) said that their residential rates increased over the past 12 months, while 47.1 percent said rates had stayed the same.
The figures fly in the face of numerous reports claiming that rents in Dubai are falling, and that the environment has swayed in tenants’ favour. A recent report from CBRE said that residential rates in Dubai fell by 1 percent in the first quarter of 2017 compared to the last quarter of 2016, and that the fall could be attributed to “constrained demand”.
“There does appear to be some disconnect between what market reports say about rental rates in Dubai and what people are actually seeing on the ground,” said Jonathan Rawling, CFO of compareit4me.com
“Our best explanation for this is that renters in Dubai aren’t aware that the market could now be more favourable to tenants. Several survey respondents said that they ‘hadn’t thought to ask’ their landlords about a reduction in their rental rates, highlighting the fact that many tenants simply accept their lot when it comes to renting.”
The survey results also suggest that Dubai renters assume the real estate market is continuing to heat up. Over 45 percent of respondents said that they expect their rental rates to increase over the next 12 months, while 38.2 percent said they expected their rent to stay the same.
Just 16.2 percent expect a decrease in the next year, the survey found.
Of those surveyed by compareit4me who did manage to secure rental reductions, 71.4 percent said that they saw a discount of 5-10 percent compared to last year’s rates, while the rest saw a reduction of up to 5 percent.
According to the survey, the ability to secure a rental rate cut in Dubai might very well depend on the area in which you live.
In Jumeirah, for example, not a single respondent indicated that their rental rates had decreased over the past 12 months, with 40 percent reporting an increase.
In Bur Dubai, tenants are having an even harder time, according to the survey, with 57.1 percent of people living in that area seeing their rents go up in the last year. It was the same story in Deira, where 50 percent of respondents said their rents had increased over the past year.
The areas where renters were able to secure a rate cut were limited – Al Barsha, The Palm Jumeirah and Jumeirah Lakes Towers were among the top-scoring locations for lower rental rates.