Over 70 percent of UAE residents are still paying the same – or more – rent for their home than they did a year ago, according to data from the Yallacompare Consumer Confidence Tracker for Q2 2019.
The findings come despite widely reported falls in rents over the last year.
Data from Property Finder, for example, found that apartment rents in Dubai fell 5 percent year-on-year in H1 2019, and are 21 percent lower than they were two years ago.
The data also showed that villa rents fell in several areas of the emirate, notably in The Meadows, which were down 18.1 percent in H1, and Al Furjan, where rents fell 7.8 percent year-on-year.
Yallacompare, however, found that 33.1 percent of respondents said they were paying more rent in Q2 2019 than a year ago. Another 37.5 percent said they are paying the same.
A total of 29.2 percent of respondents said they were paying less.
“The headline finding here, that 70 percent of us pay the same or more than a year ago, does seem surprising,” said Jonathan Rawling, the CFO of Yallacompare. “But, as we’ve said before: if you don’t ask, you don’t get.”
Rawling added that “residents must negotiate better terms with their landlords at least three months before a lease expires.”
“Otherwise, the contract automatically renews on existing terms. So, start negotiating and be prepared to move house if your landlord won’t budge.”
The data also found that 63 percent of respondents are in the same house as they were in a year ago, while 26 percent are in a smaller home, with 11.4 percent reporting that they moved to a bigger one.
Over two thirds of respondents – 67.3 percent – said they are not planning to move in the next year, while nearly 23 percent plan to relocate to a smaller home. Almost 10 percent said they plan to move to a bigger one.
When asked how much more or rent they are paying than a year ago, 8.2 percent said they’re paying over 20 percent, compared to 19.6 percent who said they’re paying between 5 and 10 percent more.
6.7 percent of tracker respondents said they are paying 5 to 10 percent less, while 10.5 percent said they achieved a reduction of less than 5 percent. Only 3 percent are paying more than 10 percent less than last year.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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