Amidst supply influx of 20,000 new homes, Dubai suburban rents are expected to fall in 2017. The decline rate will be 4 per cent compared to this year as predicted in the published Core Savills 2017 forecast.
The broker believes that 19 per cent (around 3,800 homes) of new units is under construction and will be built in the most established and central parts of the city next year. This new supply will push down the home prices in many of the new communities.
“We continue to see rents in lease renewals to be marked down or at least see no change,” says David Godchaux, Chief Executive, Core Savills.
However, the sales prices are likely to be increased due to the expenses on the infrastructure of mega projects such as Al Maktoum Airport, Dubai Parks and Resorts, Dubai Creek Harbour and Bluewaters Island and Expo 2020.
According to the Managing Director of Phidar Advisory – Jesse Downs – the home prices and rents across Dubai will go down next year as the companies is going to be downsized due to economic slowdown which discourages the demand only to decline sales prices.