An increasing number of UAE residents are paying less rent than a year ago, according to a new survey.
The Yallacompare Consumer Confidence Tracker for Q4 2018, which surveyed more than 1,200 UAE residents, found that 26% have successfully negotiated a reduction in their rent, compared with 19% in the previous quarter.
The survey also found that 36% are paying more than a year ago in Q4, down from 47% in Q3.
“We have been trying to get the message out that in the current climate, tenants can negotiate with their landlords, but they must do it three months before the lease expires," said Jonathan Rawling, CFO, yallacompare.
Tracker data found that declining rental rates hasn't led to a mass movement of tenants, with 61% of those surveyed saying they're still in the same home they were in a year ago, with 69% revealing that they don't plan to move next year.
“It could be the stress of moving home, or perhaps decreases in rent aren’t yet enough to make it worthwhile, but UAE residents appear to be staying put where they are," said Rawling.
"The data also tells us that we aren’t even seeing much upscaling, where residents move to get a bigger or better place for the same money."
According to Asteco, average apartment rents in Dubai were down 11% year on year in Q3 2018, while villa rents were down 9% year on year. In Abu Dhabi, apartment rents were down 11% year on year and villa rates down 8%.
However, just 6% of respondents said they’re paying between five and 10% less than the year before, according to the survey. The proportion paying 5-10% more than a year ago is 21%.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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