Dubai to see ‘significant’ rent drop from 2016

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• Dubai skyline. Building. Sheikh Zayed Road.Property. Photo:Sankha Kar

Dubai: Housing rents in Dubai could post a significant decline from 2016 onwards, as thousands of new apartments and villas will be completed this year, according to a real estate company.

Asteco’s latest report showed that as of the last quarter, rental rates for apartments in Dubai were 7 per cent higher than in the same period of 2013. Villa rents went up by 4 per cent, while office rents were up by 12 per cent.

The cost of renting in Dubai has been predicted to start falling in 2015, with analysts forecasting a 5 per cent drop before the second half of the year.

John Stevens, managing director at Asteco, said a huge supply of new residential units will enter the real estate market in the coming months, with 12,000 apartments and 2,000 villas expected to be completed this year. The new supply will put pressure on rents to come down to more affordable lev