In some areas of Dubai, the price of renting has fallen. Renters are currently benefiting from Dubai rent being more affordable than it has been previously in many areas. Both existing tenants and new tenants are managing to negotiate a reduction in Dubai rent prices from their landlords. This is linked to the continued drop in house rent prices.
The Drop in Dubai Rent Prices
Many real estate agents believe that the supply is much greater than the demand. This gives tenants the leverage to negotiate better prices on their rent. Tenants in areas such as Bur Dubai, Gold Souq and Garhoud are taking advantage of discounted Dubai rental rants. This has led to a buzz in many areas of the real estate market, with many renters trying to save money. Though this isn’t good news for landlords, it is beneficial to tenants and real estate brokers.
Imran Khateeb, Sales Manager at Mak Homes Real Estate, explained that the Dubai real estate market is now a customer’s market. With Dubai rent dropping by as much as 20 – 30% in some areas, tenants now have the opportunity to negotiate with their landlords. This will see them save money on rent. Alternatively, some now have the freedom to look for other options. For example, rental areas that were previously too expensive now be within reach. This is keeping real estate brokers and real estate companies, such as Mak Homes Real Estate, extremely busy.
Sajjad Ahmad, a Gold Souq based trader, explained that he has been able to negotiate a discount of Dh5,000 with his landlord. Though this isn’t a major saving, it is a reduction worth noting. This discount wouldn’t have been possible before because Gold Souq is one of Dubai’s busiest commercial areas and there’s always a high demand for commercial and residential property.